More Democrats targeting Navy Federal over discriminatory practices allegations
The New Democrat Coalition and the Congressional Hispanic Caucus are calling for a probe into allegations of discriminatory practices by Navy Federal Credit Union (NFCU).
More than 20 members called for investigations into recent reports that the company engaged in “racially discriminatory lending practices.” They pointed to a recent analysis that found significant disparities in loans for Black and Latino mortgage applicants compared to white applicants.
“As champions of economic opportunity, New Dems take these allegations serious. Every American deserves access to affordable housing, and lenders like Navy Federal Credit Union must be part of the solution, not the problem,” Rep. Norma Torres (D-Calif.), chair of the Affordable Housing Task Force, and Rep. Emilia Sykes (D-Ohio), its vice chair, said in a statement.
“We look forward to reviewing the responses from Navy Federal Credit Union and government regulators, and will work with Congress and the Administration to ensure equality and fairness is upheld,” the statement said.
The groups have sent a letter to NFCU CEO Mary McDuffie requesting more information about the company’s policies and procedures. The Democrats also sent a letter to various government agencies, including the Department of Housing and Urban Development, asking for further investigations into the matter.
“The Congressional Hispanic Caucus is concerned about the report of possible discriminatory practices by the Navy Federal Credit Union,” caucus Chair Rep. Nanette Díaz Barragán (D-Calif.) said in a statement. “It is critical to the economic health of all our communities that prospective Black and Latino homeowners have access to the same home mortgage loans as other Americans.”
Barragán is asking for a “prompt and comprehensive” response from all parties.
The concerns, first reported by CNN in December, found that NFCU, the largest credit union in the country, approved more than 75 percent of white borrowers’ applications in 2022, but less than 50 percent of loan applications from Black borrowers.
The joint letter to McDuffie highlights how the alleged practices are discriminatory and potentially violate the Equal Credit Opportunity Act and the Fair Housing Act.
A spokesperson for Navy Federal said the company is “committed to serving each and every one of our members fairly.”
Black borrowers make up one in four of the company’s members, the spokesperson said.
“We will continue working to support all of our members to help them build strong financial futures and help get them in homes, and we remain committed to engaging with policymakers and regulators on this important issue,” the spokesperson said in an emailed statement.
This story was updated at 4:04 p.m.
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