(Reuters) – The US Department of Justice is launching a nationwide initiative to combat discriminatory lending practices, Justice Minister Merrick Garland said on Friday. minority areas, remained a persistent problem, and the federal government devoted more resources to identifying it and punishing lenders.
"Today we are committed to addressing today's declines by using far more robust use of our fair lending authorities," he said. The new initiative will address fair lending issues "on a broader geographical scale than the Ministry of Justice ever done before, "he added.
Specifically, Attorney General Garland said that nationwide agencies cooperate with banking and consumer regulators, including the Consumer Financial Protection Bureau and the Office of the Currency Controller, which oversee national banks.
The government already has several equity lending funds open and expects more to come soon, he said. to offer mortgages in predominantly black and Latin American neighborhoods.
Officials said that they would focus on modern ways lenders can discriminate against borrowers. Rohit Chopra, director of the Consumer Financial Protection Bureau, pointed out "digital redlining disguised by so-called neutral algorithms."
"Algorithms can help remove bias, but black box underwriting decisions do not necessarily create more equal conditions," he said in the announcement. "We will not allow robo-discrimination to spread." Catalog