Two dozen House lawmakers last week called on federal regulators to investigate the nation’s largest credit union following reports of racial disparities in its lending practices, adding their voices to a growing number of members of Congress demanding answers from the institution.
In a joint letter, 21 members of the New Democrat Coalition and Congressional Hispanic Caucus urged regulators to ensure that Navy Federal Credit Union is adhering to fair lending laws following a CNN report that concluded the institution rejected minority applicants for conventional home purchase mortgages at a much higher rate than white applicants. They also sent a letter to former Navy Federal CEO Mary McDuffie asking a series of questions about the credit union’s fair lending processes. (McDuffie stepped down at the end of February and was succeeded by Dietrich Kuhlmann.)
In a separate joint letter last week, Reps. Emanuel Cleaver, II (D-Mo.), ranking member of the House Financial Services Subcommittee on Housing and Insurance, Steven Horsford (D-Nev.), chairman of the Congressional Black Caucus, and Sydney Kamlager-Dove (D-Calif.) urged the CPFB and National Credit Union Administration to investigate Navy Federal’s lending practices.
The letters represent only the latest calls from lawmakers for a wider probe of Navy Federal. House Financial Services Committee Ranking Member Rep. Maxine Waters (D-Calif.) and six committee Democrats in February requested that committee Chairman Rep. Patrick McHenry (R-N.C.) hold a hearing on the credit union. In addition, the Congressional Black Caucus in January requested a meeting with McDuffie to discuss the alleged disparities.
