Navy Federal Credit Union has announced the conclusion of an external review into its mortgage lending practices. The credit union had engaged Debo Adegbile, a prominent civil rights lawyer and former Commissioner of the U.S. Commission on Civil Rights from WilmerHale, to conduct the review.
According to Navy Federal, the review found no evidence of race-based decision-making in their mortgage underwriting process. Mr. Adegbile's analysis indicated that when non-public underwriting factors such as credit score, income verification, debt-to-income ratio, and incomplete credit applications were considered, claims of discrimination reported by CNN were unsupported.
"Navy Federal values each and every one of our members," said a spokesperson for Navy Federal Credit Union. They emphasized that Black members constitute one-fourth of their membership and highlighted their standing as the largest home lender to Black Americans by percentage of loans made.
The credit union is actively exploring initiatives to enhance access to homeownership among its 13 million members worldwide. These efforts include establishing the Office of Financial Opportunity under Executive Vice President Brittani Ivey and offering programs like free financial counseling and support for first-time homebuyers.
Debo Adegbile stated, "CNN’s analysis was incomplete, and the article’s suggestion that Navy Federal discriminates against its members is unsupported." He noted that after controlling for all relevant factors not considered by CNN, differences in approval rates between Black and White borrowers dropped significantly.
Navy Federal Credit Union was founded in 1933 and serves over 13 million members globally. It operates as a member-owned organization with more than 24,000 employees across 355 branches worldwide.