Guest Post by Elliott Middleton
Joe Biden is introducing explicitly racist credit criteria into the American housing market, already struggling to remain at record-high prices. People of color will be given better deals on Fannie Mae and Freddie Mac mortgages if their credit scores are below 680, including lower fees and interest rates.
I spent 20 years as a decision scientist in banking building credit scoring models, so this is a topic I know something about. Federal law explicitly forbids using race as an independent variable in a credit scoring model, a measure introduced to prohibit “red lining.” So those with good credit and savings will be subsidizing mortgages for others who are less financially responsible. This is discrimination based on race, and it is illegal.
Credit scoring is actually the first place “artificial intelligence” or machine learning was employed en masse, and it has been successful.
Continue reading “The Democrats hate people of color”