MA AG — $2.5M Earnest Operations Settlement (AI Underwriting Discrimination)
MA · MA AG — $2.5M Earnest Operations Settlement (AI Underwriting Discrimination) (2025-07-10)
Settlement with student-loan lender Earnest over allegations its AI underwriting model and 'Knockout Rule' produced disparate impacts on Black, Hispanic, and non-citizen applicants. Mandates AI governance, annual fair-lending testing, AG reporting.
Technical detail
Settlement with student-loan lender Earnest over allegations its AI underwriting model and 'Knockout Rule' produced disparate impacts on Black, Hispanic, and non-citizen applicants. Mandates AI governance, annual fair-lending testing, AG reporting. State AG enforcement / guidance action.
Who is protected: MA consumers, workers, and residents affected by AI
Who must comply: Defendants in the action / regulated entities the guidance addresses
Key facts
| Jurisdiction | MA |
|---|---|
| Level | State |
| Status | In effect |
| Protection strength | Limited protection |
| Effective date | 2025-07-10 |
| Enacted | 2025-07-10 |
| Citation | MA AG — $2.5M Earnest Operations Settlement (AI Underwriting Discrimination) (2025-07-10) |
| Enforced by | MA Attorney General |
| Penalties | Settlement / civil penalties / injunctive relief depending on action |
| Topics | housing and credit decisions · automated decision-making · consumer protection |
| Last verified | 2026-06-28 |
| Official source | MA AG — $2.5M Earnest Operations Settlement (AI Underwriting Discrimination) — AG source ↗ |
More AI rules in MA
- MA AG Campbell · In effect
- MA EO 629 · In effect
- MA DOI AI Bulletin · In effect
Related housing and credit decisions rules elsewhere
- Connecticut algorithmic rent ban — HB 8002 (eff. Jan 1, 2026) · In effect
- San Diego algorithmic rent price-fixing ban (Ord. O-21955, May 2025) · In effect
- Minneapolis algorithmic rent ban (Ord. 2025-010, eff. Mar 1, 2026) · In effect
- Seattle algorithmic rent-fixing ban (Ord. 127241 / SMC 7.34, July 2025) · In effect
- Hoboken Algorithmic Rent-Fixing Ban · In effect
- Santa Monica Algorithmic Rent-Setting Ban · In effect
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