Democrats on the House Financial Services Committee are requesting that Chairman Rep. Patrick McHenry, R-N.C., hold a hearing on allegations that Navy Federal Credit Union discriminated against Black members seeking to purchase a home.
“A public hearing on this matter will not only shed light on the practices of Navy Federal Credit Union but will also serve as an opportunity to explore potential solutions and reforms that can be implemented to ensure fair and equitable lending practices by all lenders,” the committee members, led by ranking Democratic Rep. Maxine Waters of California wrote in a letter to McHenry this week.
CNN reported in December that Navy Federal, the nation’s largest credit union, approved 75% of White borrowers who applied for a conventional home purchase mortgage in 2022, compared with less than 50% of Black borrowers who applied for the same type of loan. The gap between White and Black borrowers was the widest of any of the 50 lenders that originated the most mortgage loans in 2022.
Responding to the allegations in December, Navy Federal released a statement that said, in part, “We take our responsibility to fair lending very seriously and are closely examining the allegations in the recent CNN article. The statistics in the article do not appear to have considered several key credit criteria that all financial institutions, including Navy Federal, rely on to assess mortgage applications.”
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