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Mortgage underwriting algorithm at heart of Wells Fargo’s racial disparity lawsuit

Wells Fargo‘s internal credit-scoring algorithm is at the center of a lawsuit that plaintiffs say resulted in more than 100,000 disparately impacted minority applicants. The lawsuit stems from a 2022 Bloomberg investigation that found Wells Fargo was the only large bank to deny more Black applicants than it accepted in 2020 during the refinancing boom.

The banking giant is fighting the plaintiffs’ motion to create a class of at least 119,100 people who allegedly faced discrimination when applying for a mortgage or home equity loan between 2018 and 2022. These applicants were eventually denied, even though they were initially details ⇒

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