American Banker, May 6, 2022, CFPB reiterates skepticism of AI in fair-lending report
The Consumer Financial Protection Bureau reiterated its skepticism of machine learning and predictive analytics in a fair-lending report issued Friday that shows an increase in actions against redlining and discriminatory practices.
The CFPB said financial services will be increasingly shaped by predictive analytics, algorithms, and machine learning but that technology can also reinforce “historical biases that have excluded too many Americans from opportunities.”
In the report, Patrice Ficklin, the CFPB’s fair-lending director, said that while she is encouraged by programs that can expand access to credit, she is skeptical of claims that advanced algorithms are a “cure-all” that can eliminate bias in credit underwriting and pricing. Her boss, CFPB Director Rohit Chopra, had previously warned companies about relying too heavily on AI and machine learning in making lending decisions.
