LoanDepot algorithm denied mortgage to Black couple in Charlotte
In August 2019, Crystal Marie and Eskias McDaniels, a Black couple, were denied a mortgage for a house in Charlotte, North Carolina, by loanDepot's automated underwriting algorithm. The algorithm rejected the application because Crystal Marie was a contractor, not a full-time employee, despite her high credit score and income. After the couple enlisted their real estate agent and employer to intervene, the lender reversed the decision and cleared them to close. The couple alleged that race played a role in the denial, which loanDepot denied.
- Date it happened
- 2019-08-01
- Organisation involved
- loanDepot
- Product, system or model
- Classic FICO and Fannie Mae/Freddie Mac automated underwriting software
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