> I am not aware of models that use birth month to make loan decisions, but if that's a useful predictor, why not include it?
Because it's fucking unfair, and humans hate feeling like they've been wronged for unfair reasons they cannot control. How would you feel if your loan got denied, you asked why, and you found it it would have been approved if you had been born in April instead of June? Don't pretend you'd love it and smile. You'd rant about it and tell all your friends how bad that lender is.
If the lender rejects you because your debts are too high or your income too low or something, or the zip code of the home you're mortgaging, that makes more sense and feels more relevant and in your control, at least.
Yeah, it's nice from the point of view of the lender, but the cost is too high to society.
Society feels so strongly about this that (in the USA) we've even passed all kinds of laws about what pieces of information are absolutely banned from being used to determine who gets a job or who gets a home. If you are a landlord or hiring manager you have to be aware of them so you can at least pretend to comply.
Sometimes I wonder if AI is already here secretly. Half of my replies on hacker news seem to basically boil down to teaching what humans are actually like.
> How would you feel if your loan got denied, you asked why, and you found it it would have been approved if you had been born in April instead of June?
I mean, I pay more for car insurance because I am immutably male. I don't feel great about this, but assuming that males my age are statistically more likely to be in crashes this makes total sense.
Likewise, I don't feel great that even if I were really good at basketball I'd be way less likely to make the short list of an NBA recruiter, because statistically I'm not going to be as good as someone two feet taller. It may not feel great, but it still absolutely feels fair too.
If people born in April instead of June were actually statistically more likely to be in crashes, I don't see how this is any different or unfair.
If I understand correctly, most modern insurance models contain both a general risk ("males are more dangerous so their premiums should be higher") and personal risk ("this male has driven without an accident for 20 years, which is better than the average male, so we categorise them as less risky").
Because it's fucking unfair, and humans hate feeling like they've been wronged for unfair reasons they cannot control. How would you feel if your loan got denied, you asked why, and you found it it would have been approved if you had been born in April instead of June? Don't pretend you'd love it and smile. You'd rant about it and tell all your friends how bad that lender is.
If the lender rejects you because your debts are too high or your income too low or something, or the zip code of the home you're mortgaging, that makes more sense and feels more relevant and in your control, at least.
Yeah, it's nice from the point of view of the lender, but the cost is too high to society.
Society feels so strongly about this that (in the USA) we've even passed all kinds of laws about what pieces of information are absolutely banned from being used to determine who gets a job or who gets a home. If you are a landlord or hiring manager you have to be aware of them so you can at least pretend to comply.
Sometimes I wonder if AI is already here secretly. Half of my replies on hacker news seem to basically boil down to teaching what humans are actually like.