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Offering loans to people whose credit scores are just below the standards are what led to the housing/banking crisis in 2005-2008. I think this is a good program for a few loans in each market for the reasons given, but hopefully they don’t roll this out to everyone.
Asians are never mentioned in these stories, although they have the highest average income and credit scores of all four major groups. Anyway, we have loads of data on financial habits and likelihood of default. Asians, then whites, then Latinos, then blacks have the highest credit scores. That’s also the same batting order for default rates (lowest to highest) even when adjusting for income. You don’t have to conjure up some complicated historical explanation for loan denial rates, its simply a reflection of risk based on decades of information.