A Secret Bias Found in U.S. Mortgage-Approval Algorithms

Prospective borrowers of color were frequently rejected even though they looked almost exactly the same on paper as the white applicants, except for their race.

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Photographer: Johnny Milano/Bloomberg
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(AP) -- The new four-bedroom house in Charlotte, North Carolina, was Crystal Marie and Eskias McDaniels’ personal American dream, the reason they had moved to this Southern town from pricey Los Angeles a few years ago.

A lush, long lawn, 2,700 square feet of living space, a neighborhood pool and playground for their son, Nazret. All for $375,000.