Navy Federal Credit Union Faces Allegations of Racial Bias in Mortgage Approvals

December 14, 2023

Navy Federal Credit Union, a credit union serving military members and veterans, faced allegations of racial bias in its mortgage approval process. In 2022, data revealed significant disparities in loan approvals, with over 50% of Black applicants denied, compared to higher approval rates for white applicants. These findings underscore the importance of safe and secure AI practices, especially in critical areas such as lending. For those interested in shaping the future of responsible AI governance, consider joining HISPI Project Cerebellum's efforts to map, measure, and manage such incidents through our TAIM framework.

Learn More: JOIN US

Matched TAIM controls

Suggested mapping from embedding similarity (not a formal assessment). Browse all TAIM controls

GOVERN 3.1 — similarity 0.643, rank 1. TAIM detail and related incidents →
MEASURE 2.10 — similarity 0.638, rank 2. TAIM detail and related incidents →
MAP 1.6 — similarity 0.635, rank 3. TAIM detail and related incidents →

Alleged deployer: federal-navy-credit-union
Alleged developer: unknown-developer-of-automated-underwriting-technology
Alleged harmed parties: federal-navy-credit-union-customers

Source

Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/618

Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

Pre-print on arXiv · Database snapshots & citation guide

We use weekly snapshots of the AIID for stable reference. For the official suggested citation of a specific incident, use the “Cite this incident” link on each incident page.