The secret bias hidden in mortgage-approval algorithms

The new four-bedroom house in Charlotte, N.C., was Crystal Marie and Eskias McDaniels’s 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. Prequalifying for the mortgage was a breeze. They said they had saved much more than they would need for the down payment, had very good credit—scores of 8