CFPB Issues New Guidance Requiring AI Credit Decision Explainability
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CFPB issued guidance on lenders using AI for credit decisions
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Lenders must provide specific reasons for adverse actions, not just checklist items
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Growth of AI algorithms requires explainability even if models are complex
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Lenders can't just say "purchasing history", must explain specific negative behaviors
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CFPB treating fair lending and AI explainability as priority, issued other guidance on this
![](https://files.consumerfinance.gov/f/images/cfpb_circular-AI-credit-denial_1920x1080.original.jpg)