Navy Federal Credit Union, the largest in the US, is under scrutiny for alleged racial disparities in mortgage lending.
A class-action lawsuit claims discrimination against Black and Latino applicants, following a CNN report highlighting significant racial gaps in mortgage approval rates.
The credit union’s hiring of a civil rights attorney to review its lending policies comes in response. (Trending: Trump Releases Must-See TV Ad Ahead of 2024)
US Rep. Maxine Waters has called for explanations and investigations, while the lawsuit details the stories of two plaintiffs.
The complaint reads, “When describing its corporate values, Navy Federal claims that it ‘champions community,’ and that it is ‘dedicated…to embracing and celebrating diversity and inclusion in all the communities’ it serves.”
“But Navy Federal’s claims of community support are meaningless in the face of its actions: systematic discrimination in housing, in violation of federal law,” it continued.
“Navy Federal must explain both to Congress and their members how such practices took place, what immediate steps are being taken to correct the harm done, and who in management will be held responsible,” said Rep. Maxine Waters.
“While this type of discrimination may be par for the course for a profit-driven megabank, a member-driven credit union should know better,” added the California Democrat.
The lawsuit accuses Navy Federal of violating fair lending laws and seeks to represent a broad class of potential plaintiffs.
The credit union has defended its lending practices, stating that CNN’s analysis did not account for essential criteria required to approve mortgage loans.
Attorney Adam Levitt, wrote on behalf of the plaintiffs, “Our goal in filing this lawsuit is to obtain economic justice for Black and Latino borrowers, who, we allege, Navy Federal denied their piece of the American Dream.”
Navy Federal spokesperson Bill Pearson, said, “Navy Federal Credit Union is committed to equal and equitable lending practices and strict adherence to all fair lending laws.”
“Employee training, fair lending statistical testing, third-party evaluations, and compliance reviews are embedded in our lending practices to ensure fairness across the board,” he continued.
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