Senators seek agency review of Navy Federal lending disparities

Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and other Democratic members of the panel called on federal agencies to review Navy Federal Credit Union’s mortgage lending practices following reports of racial disparities in its mortgage approval rates.

Details: In a letter to the Department of Housing and Urban Development and the Consumer Financial Protection Bureau, the senators urged the agencies to review Navy Federal’s compliance with all federal fair housing and fair lending laws and regulations. The letter followed a news release last month from House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) calling on Navy Federal to explain itself to Congress.

CNN Report: Citing 2022 CFPB data, CNN last month reported that the $165-billion-asset institution had racial disparities even among applicants with similar incomes and debt-to-income ratios. The report noted that credit unions are exempt from Community Reinvestment Act oversight, unlike banks.

ICBA Response: ICBA last month shared the article on X and renewed its request for Congress to hold hearings on credit unions. In a separate post, ICBA President and CEO Rebeca Romero Rainey cited her recent LinkedIn article responding to Navy Federal’s new “Community Bank” brand and calling on Congress to investigate credit union policies.

More on Credit Unions: As part of its push for policymakers to investigate the credit union tax exemption, ICBA has:

• Launched targeted ads and a new website making clear to consumers that “Something’s Wrong” with credit union policy.

• Conducted an ad campaign directing congressional offices to questions they should ask credit union executives in Washington for advocacy meetings.

• Renewed its call for Congress to act on credit union bank acquisitions.