WASHINGTON–Seven Democratic members of the House Committee on Financial Services have sent a letter to the committee’s chairman asking that he “immediately schedule” a hearing on the alleged mortgage lending bias at Navy Federal Credit Union.
In the letter, the seven committee members cite a CNN analysis that found “alarming discrepancies in approval rates between White and Black borrowers, with NFCU displaying the widest gap among major lenders.”
The letter marks the fourth different call by members of Congress that action be taken on the matter. In a separate letter, which was bicameral and includes signatories from both the House and Senate, congressional leaders called on the Department of Housing and Urban Development and the CFPB asking that they “thoroughly review” mortgage lending practices at Navy Federal Credit Union. In another letter, 40 members of Congress who describe themselves as “long-time champions of credit unions and their mission” requested a meeting with the credit union “to discuss how such striking disparities occurred and what immediate actions are being taken to remedy harmful policies, practices, and procedures.”
‘Address This Matter Promptly’
In the newest letter calling for a hearing in the House, the committee members again cite the CNN analysis, the committee’s ranking member, Rep. Maxine Waters (D-CA) states, “Given the significance of this issue and its potential impact on the financial well-being of Black and Latinx borrowers, I urge you to convene a hearing to address this matter promptly. It is crucial that the CEO of Navy Federal Credit Union be called to testify to explain the substantial disparities in its mortgage approval rates, and to discuss her plan to remedy this issue among borrowers of color and strengthen Navy Federal’s fair lending practices moving forward.
Questions for Hearing
Waters said the public hearing should be held to shed light on:
- How such practices took place
- What immediate steps are being taken to correct the harm done
- Who in management will be held responsible.
In addition to Waters, the letter was signed by Rep. Joyce Beatty (D-OH), Rep. Brad Sherman (D-CA), Rep. Al Green (D-TX), Rep. Steven Lynch (D-MA), Rep. Emanual Cleaver (D-MO), Rep. Bill Foster (D-IL).
The Findings
As CUToday.info has been reporting, the congressional interest comes in the wake of a CNN report that that said it found the widest disparity in mortgage approval rates between White and Black borrowers at Navy FCU of any major lender, with the world’s largest credit union approving more than 75% of the White borrowers who applied for a new conventional home purchase mortgage in 2022, but less than 50% of Black borrowers who applied for the same type of loan.
The report alleges similar bias against Hispanic and Latino borrowers.
The findings were based on the most recent data available from the CFPB. Navy FCU has challenged the findings, saying they are incomplete.
One lawsuit seeking class action status has already been filed against Navy Federal.
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