Fed Governor Points Lenders Toward Second-Chance Borrowers

Michael Barr is urging lenders to look beyond conventional credit histories when evaluating consumers and entrepreneurs with criminal records, pointing to cash-flow underwriting, alternative financial data and artificial intelligence (AI) as tools that could identify borrowers whose current finances are stronger than their credit files suggest. 1) at the Second-Chance Lending Forum in Washington, Barr said people who have experienced incarceration face