Algorithms, Financial Industry Practices, and Disparate Impact
NID Housing has worked for decades analyzing the housing policy impact on low-income and minority communities, in addition to serving clients in our communities. With the explosion of new technologies in private and public industries, the task of analyzing policy impact has been made much more difficult. While it has always been extremely onerous to establish discriminatory intent in policy practices, consumers could always look to establish a disparate impact to show a constitutional frailty in a public policy.
Recently, the Electronic Frontier Foundation (“EFF”) published an analysis of how a proposed HUD Rule could erect a prohibitive behavior to even disparate impact claims on housing industry practices. The analysis (found here) explains how computer algorithms, already in use by the housing services industry, will be impacted by HUD’s proposed Rule.
NID Housing will continue to stay abreast of technology developments, the real-life impact of these developments, and their influence on policy implementation have on homeownership and wealth building in low-income and minority communities.