Robert Bartlett quoted in HousingWire, November 20, 2018
Robert Bartlett, co-author of the study and professor at Berkeley Law, suggested there could be legal implications for lenders using these algorithms.
Bartlett said fair lending laws prohibit price discrimination and that courts have ruled that pricing variations can only be justified by credit risk.
“The novelty of our empirical design is that we can rule out the possibility that these pricing differences are due to differences in credit risk among borrowers,” Bartlett said.