By Charlene Crowell –
A mortgage discrimination case that began with two plaintiffs last December was consolidated in late February with seven others to form a class action lawsuit alleging that Navy Federal Credit Union—the nation’s largest with 13.4 million members and $170.8 billion in assets—“intentionally discriminates against minority borrowers across the United States.”
The lawsuit alleges that Navy Federal, which serves current and former military members from all service sectors, denied loans for 52% of Black borrowers and 44% of Latino borrowers, while denying only 23% of white applicants for home mortgage purchase or refinance loans and Home Equity Lines of Credit.
Affidavits of affected borrowers told stories of the financial and emotional distress caused by qualified loan applicants having to find alternative—and often more costly—financing after being denied by their member-owned credit union.
The lawsuit, led by nationally known attorney Ben Crump and his associate Adam Levitt, said the lender’s own data show that Navy Federal approved loans for a higher percentage of white borrowers annually earning less than $62,000 a year than for Black loan applicants earning $140,000 or more.
And when Navy Federal did approve a loan to a Black or Latino applicant, they often were offered worse interest rates and loan terms than those offered to white borrowers with similar financial profiles. These activities are illegal under federal laws, including the Fair Housing Act and Equal Credit Opportunity Act (ECOA).
“The outright discrimination that occurs when ‘Banking While Black’ continues to reveal itself in the lending practices of many of America’s largest financial institutions,” said Crump. “It is shameful that Navy Federal, an organization that prides itself in helping the families of…
Read the full article here
