Navy Federal fallout continues on Capitol Hill

The fallout of reports on discriminatory lending at Navy Federal Credit Union continued Wednesday with new congressional leaders seeking an inquiry.

Latest Response: The New Democrat Coalition and Congressional Hispanic Caucus sent separate letters:

• Urging federal agencies to investigate CNN’s report on the lender’s racial disparities in mortgage approval rates.

• Demanding that Navy Federal answer questions about the report.

Previous Inquiries: The letters are the latest in a series of congressional inquiries, with House Financial Services Committee Democrats recently urging Chairman Patrick McHenry (R-N.C.) to hold a hearing on the report. ICBA last month urged congressional committees to convene a broader hearing on credit union lending practices and oversight.

Third-Party Oversight: Credit union policy has continued to make headlines with National Credit Union Administration Chairman Todd Harper separately saying his agency’s lack of oversight of third-party providers is an “Achilles’ heel.” As ICBA has told Congress, it supports allowing the NCUA to directly examine and regulate third-party providers.

Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on their members of Congress to hold a hearing on the NCUA’s lax oversight. Additional resources on credit union policy are available on the ICBA website.