MA AG
MA AG — $2.5M Earnest Operations Settlement (AI Underwriting Discrimination)
MA · MA AG — $2.5M Earnest Operations Settlement (AI Underwriting Discrimination) (2025-07-10)
- Status
- In effect
- Took effect
- July 10, 2025
- Applies to
- Defendants in the action / regulated entities the guidance addresses
- Enforced by
- MA Attorney General
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.
Who is protected: MA consumers, workers, and residents affected by AI
Legal 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.
Key facts
| Jurisdiction | MA |
|---|---|
| Level | State |
| Strength | Limited |
| Enacted | July 10, 2025 |
| Citation | MA AG — $2.5M Earnest Operations Settlement (AI Underwriting Discrimination) (2025-07-10) |
| Penalties | Settlement / civil penalties / injunctive relief depending on action |
| Topics | housing and credit decisions · automated decision-making · consumer protection |
| Agency page | 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
- NJ Forbidding the Algorithmic Inflation of Rent (FAIR) Act · Enacted (not yet in effect)
- Hoboken Algorithmic Rent-Fixing Ban · In effect
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