Knowledge Base Regulation Tracker Standards & Frameworks OSS Directory AI Incident Database Research Paper Library Case Studies Society Articles News Jobs About Charter Sign inBecome a Member
Home/AI Incident Database/Navy Federal Credit Union Faces Allegations of Racial Bias in Mortgage Approvals

Navy Federal Credit Union Faces Allegations of Racial Bias in Mortgage Approvals

Navy Federal Credit Union, serving military members and veterans, faced allegations of racial bias in its mortgage approval process, which relies on automated underwriting technology. In 2022, data revealed significant disparities in loan approvals, with over 50% of Black applicants denied, compared to higher approval rates for white applicants.

Severity: MediumUnfair discrimination and misrepresentation

Contribute

Spot an error, or know a record we should add? Members can propose additions and submit corrections.

Submit incidentReport a correction or request removal

Related in AI Incident Database

The UK's universal-credit fraud algorithm shows bias by age, disability, marital status and nationality

Internal assessments released in 2024 showed the DWP's machine-learning fraud detector disproportionately flagged some groups, contradicting earlier assurances that it posed no discrimination risk.

Bias and discrimination2024

France's family benefits agency uses a fraud-risk score that flags single parents and the poor for investigation

Leaked source code showed France's benefits agency assigning higher fraud-risk scores to the most vulnerable claimants, triggering the country's first legal challenge to welfare scoring.

Bias and discrimination2023

Rotterdam's welfare-fraud algorithm scores young mothers and non-Dutch speakers as high risk

Lighthouse Reports and WIRED obtained Rotterdam's fraud model and showed it ranked a single mother who spoke poor Dutch among the riskiest residents, exposing systematic bias.

Bias and discrimination2023