Navy Federal Credit Union systematically denied more than 50% of Black applications for mortgages while approving over 75% of white mortgages from applicants with similar financial backgrounds, according to a recent report.
CNN found that “While many banks also approved White applicants at higher rates than Black borrowers, the nearly 29-percentage-point gap in Navy Federal’s approval rates was the widest of any of the 50 lenders that originated the most mortgage loans last year.”
However, the credit union denies claims of discrimination and claims CNN’s study is incorrect, and has a flawed methodology.
The company responded saying, “CNN’s recent analysis of mortgage lending data does not accurately reflect our practices, and furthermore their mortgage data model does not account for major criteria required by any financial institution to approve a mortgage loan.”
The military credit union boasts over 13 million members and more than $165 billion in assets.