> I think a solution would be any parameter that remotely gives a correlate for race should be entirely eliminated from scoring systems.
The problem is, that's every parameter. The outcome you're trying to predict (will borrower repay debt) correlates with race, so other things that correlate with that outcome also correlate with race.
What you really need to do is to include as many non-race factors as you can, to give people with a couple of negative factors (who are often black or hispanic) more chances to redeem themselves with the other ones, to get the false positive rate down as much as you can.
Because the false positives (and false negatives) are really the problem. The true positives are... well, true.
The problem is, that's every parameter. The outcome you're trying to predict (will borrower repay debt) correlates with race, so other things that correlate with that outcome also correlate with race.
What you really need to do is to include as many non-race factors as you can, to give people with a couple of negative factors (who are often black or hispanic) more chances to redeem themselves with the other ones, to get the false positive rate down as much as you can.
Because the false positives (and false negatives) are really the problem. The true positives are... well, true.