Only months after the Federal Reserve Board rejected the use of "testers" to weed out loan discrimination by banks, the Department of Housing and Urban Development is launching a major initiative using the technique to assess the objectivity of mortage lenders.

The housing department is offering up to $1 million to non-profit housing groups and private companies interested in performing bias tests, according to a plan outlined in the Federal Register.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.