CFPB calls on tech workers to report discrimination on AI loans

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December 17, 2021

Federal Issues CFPB Artificial Intelligence Fintech Whistleblower Fair Loan Consumer Finance

On December 15, the CFPB released a blog post urging tech workers to report potential violations of federal consumer finance laws, including those related to artificial intelligence (AI), as part of the Bureau’s efforts to adapt to the landscape. evolving financial. According to the Bureau, artificial intelligence has become part of nearly all consumer financial markets, creating the potential for intentional and unintentional discrimination within decision making. For example, while algorithmic mortgage underwriting has the potential to reduce discrimination, the Bureau warned that “researchers have found discriminatory effects of these new technologies, as Black and Hispanic families are more likely to be denied a mortgage than are white families in similar conditions. “The Bureau has asked technicians, including engineers, data scientists, and others with detailed knowledge of these algorithms and technologies, to report potential discrimination or other misconduct to the Bureau to ensure that these technologies are not used in improper or abused way. “Technicians may have stepped in to change the world for the better, but then they discover that their work is being misused or abused for illegal purposes,” said CFPB chief technologist Erie Meyer. The Bureau has updated its whistleblower webpage to provide more information on the whistleblower submission process and noted that fair loan experts and technologists will review suggestions submitted by whistleblowers. The web page also describes the type of information the Office is seeking and outlines whistleblower protections.

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