DS News

63 decades after the original discriminatory practices have been discredited and abandoned. Data collection is one area where we can make meaningful improvements. Although data analysis and data modeling can be valuable sources of objective information, implicit biases creep in when data is collected and input by people. For instance, let's look at the example of homes in majority-Black neighborhoods being significantly undervalued by appraisers. However, the home valuation process has started to evolve, presenting new opportunities to remove bias from the picture. In the last year, limitations of in-person valuations during the pandemic, coupled with technological advances, have accelerated wider acceptance of alternative valuation products, including automated valuation models (AVMs). AVMs themselves, unlike humans, lack emotion and therefore inherently lack the associated biases. Yet, it is important to understand that models are only as good as the data they are fed, and so, even when applying technology-based alternatives to in-person appraisals, biased data can impact values if not recognized. At Radian, we have found that using sophisticated artificial intelligence (AI) tools can help remove racial bias from the valuation process. e solution lies in training our models to identify and eliminate bias in the historical data set and feeding fresh data into the modeling tool that is free from human bias. AI can analyze an enormous amount of structured data such as price histories and floor plans, as well as unstructured data like photographs and written information, to establish the true condition of a property. AI can also evaluate newly built properties that have no price histories or recent comparables. However, the most intriguing thing about AI is that it can be trained to learn how to make more accurate valuations by comparing its projected outcomes with actual sales prices and then running through more data combinations until it finds the one that best matches reality. In addition to developing technology to confront racial bias in housing, Radian has joined forces with multicultural trade associations that share our commitment to helping Americans from underrepresented communities achieve their dream of homeownership. We partner closely with the National Association of Minority Mortgage Bankers of America (NAMMBA), which is dedicated to the inclusion of minorities and women in the mortgage industry and advocating for sustainable homeownership in local communities. We also proudly support the National Association of Hispanic Real Estate Professionals (NAHREP) in its mission to increase the homeownership rate among Latinos. Our team also works with local chapters of the Asian American Real Estate Association of America (AREAA) and e National Association of Real Estate Brokers (NAREB) to provide education and resources to mortgage and real estate professionals serving minority homebuyers. Partnering with multicultural advocacy groups is especially critical in this moment to help ensure equitable recovery from the COVID-19 pandemic, as minority communities have been disproportionately affected. We also believe a commitment to equity must include employees as well as customers. Our people deserve to be treated with dignity, and we strive to ensure equal access to the same treatment, opportunities, and advancement for everyone who works at Radian. Our intention is to identify and eliminate barriers that may prevent the full participation of our employees in our company. To that end, we have established pay transparency practices, enhanced advancement-focused employee development programs, and employee resource groups (ERGs) to foster equitable treatment and continue to create a safe, supportive work environment for our people. While we have built a strong foundation thus far, we have developed a multiyear roadmap with aggressive goals to further enrich our Diversity, Equity and Inclusion programs and initiatives for years into the future. Diversity, equity, and inclusion matters, especially in our mortgage and real estate finance industry that is deeply connected to peoples' aspirations and expectations related to homeownership. And when we do our jobs well, we help make the American Dream a reality for millions of people, especially those who have historically been excluded from the homeownership opportunity. Justin Foster is SVP of People Experience for Radian, a mortgage and real estate services company that is powered by technology, informed by data, and driven to deliver new and better ways to transact and manage risk. Foster has progressively responsible experience in managing human resources, talent acquisition, and diversity, equity, and inclusion programs. In his role at Radian, he is responsible for enterprise People programs, DEI strategy, and talent development. He holds a B.S. in business management and human resources from West Chester University of Pennsylvania. As President, Mortgage, for Radian Group Inc., Derek Brummer is responsible for overseeing the company's Mortgage Insurance and Mortgage Risk Services businesses, including developing strategies for continued growth as the mortgage industry evolves. Brummer joined Radian in 2002 and has served as Radian's Chief Risk Officer since 2013 and as head of Mortgage Insurance and Risk Services since 2018. Prior to that, he was Chief Risk Officer and General Counsel for Radian's financial guaranty company. Prior to joining Radian, Brummer was a corporate associate at Allen & Overy and Cravath, Swaine & Moore, both in New York. He holds a bachelor's degree from the University of Nebraska at Lincoln and a J.D. from New York University School of Law.

• Cover