HUD’s new housing rule has an AI loophole that’s bad for America

In response to existing fair lending laws, companies like ZestFinance have developed new credit scoring and underwriting technologies that use machine learning to identify bias in lending models and mitigate its impact without increasing risk. AI can also reduce the cost and difficulty of complying with fair lending requirements by allowing lenders to produce less discriminatory models automatically without added risk.

We need strong fair lending guidelines to ensure the development of the good kind of AI that’s fair and transparent. Maintaining strong fair lending standards is also good for financial…