Cleaver, Horsford, Kamlager-Dove Call on Regulators to Investigate Navy Federal Following Alarming Reports of Racial Disparities in Mortgage Lending
(Washington, D.C.) – RealEstateRama – U.S. Representatives Emanuel Cleaver, II (D-MO), Ranking Member of the Financial Services Subcommittee on Housing and Insurance, Steven Horsford (D-NV), Chairman of the Congressional Black Caucus, and Sydney Kamlager-Dove (D-CA) called on federal regulators to ensure Navy Federal Credit Union is adhering to federal fair lending laws following alarming reports of racial disparities in mortgage lending.
In a letter to leaders of the Consumer Financial Protection Bureau (CFPB) and National Credit Union Administration (NCUA), the lawmakers wrote:
“Navy Federal holds more than $160 billion in assets and serves more than 13 million members including the military, veterans, and their families. While CNN’s analysis does not prove that Navy Federal has discriminated against current and former servicemembers on the basis of race and national origin, it raises significant questions about unexplained and statistically significant underwriting disparities.”
“Because of the asset size of Navy Federal, both the NCUA and CFPB have a legal obligation to supervise Navy Federal for compliance with fair lending laws, to make a referral to the DOJ if they have reason to believe the credit union had engaged in a pattern or practice of discrimination, and to engage in any appropriate supervisory or enforcement action,” the lawmakers continued.
Homeownership is the primary way in which most Americans build wealth. However, throughout history, Black Americans have both been denied the opportunity to own a home and denied the full benefits of homeownership, such as the ability to purchase a home in the neighborhood of choice, due to discriminatory policies. While Congress has passed legislation like the Fair Housing Act, Equal Credit Opportunity Act, and the Civil Rights Act to root out discrimination, present day forms of housing discrimination remain persistent today.
In January, Reps. Cleaver and Horsford led 40 members of the CBC in requesting a meeting with Navy Federal CEO Mary McDuffie to discuss extremely troubling reports that found Navy Federal “has the widest disparity in mortgage approval rates between White and Black borrowers of” the 50 largest mortgage lenders in the United States. Last month, Reps. Cleaver, Horsford, and Kamlager-Dove met with Ms. McDuffie and other Navy Federal leaders on behalf of the undersigned CBC members to examine the disparities.
Following that meeting, lawmakers are now requesting federal regulators to launch a formal investigation into the significant racial disparities in Navy Federal’s mortgage lending.
You can find the official letter from lawmakers here.
Emanuel Cleaver, II is the U.S. Representative for Missouri’s Fifth Congressional District, which includes Kansas City, Independence, Lee’s Summit, Raytown, Grandview, Sugar Creek, Greenwood, Blue Springs, North Kansas City, Gladstone,?and Claycomo. He is a member of the exclusive House Financial Services Committee and Ranking Member of the House Subcommittee on Housing and Insurance.
