Fed Vice Chair Barr Raises Concerns Over AI in Mortgage Underwriting

Published on July 21, 2023

In a speech on July 18, Federal Reserve Vice Chair Barr voiced concerns regarding the use of artificial intelligence (AI) in mortgage underwriting. Barr stressed the importance of transparency in AI modelling and programs to prevent potential discriminatory lending practices. Additionally, he touched on the regulatory efforts to address biases in home appraisals and efforts to update the Community Reinvestment Act, to account for the impact of digital and mobile banking.

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