Didn’t they do that with home mortgages? What could go wrong? Will affirmative action people run nuclear power plants?
Yes, we had the CRA and it’s NINJA loans.
Yes, that’s what they used the Home Mortgage Disclosure Act data to do back in the 80’s and 90’s - to find disparate impacts of mortgage rules. The DOJ back then used findings to stop bank branch expansions and mergers. Banks then loosened up lending practices and stuffed Community Reinvestment Act folders with tons of paperwork to show compliance. It marked the end of risk controls in mortgage lending.