April 25, 2024
Mortgage

Cortez Masto, Horsford among those calling for review of Navy Federal over alleged racial disparities in mortgage lending


WASHINGTON D.C., Virginia (KOLO) – U.S. Senator Catherine Cortez Masto and Representative Steven Horsford are joining some of their colleagues in calling for a review of Navy Federal Credit Union’s alleged racial disparities in its mortgage lending.

They joined Sherrod Brown (D-Ohio), Jack Reed(D-RI), Ron Wyden(D-OR) and others in calling for the Department of Housing and Urban Development and the Consumer Financial Protection Bureau to review what they say is a concerning gap in mortgage approval rates between Black and Hispanic applicants and white applicants.

A new report from CNN alleges the credit union was more than twice as likely to deny a home loan to a Black or Hispanic applicant than a white one.

“When denial rates for Black and Hispanic applicants at one institution appear to be drastically higher than the national average and higher than their rates for similarly situated white borrowers, it raises questions about whether its mortgage lending practices comply with federal fair housing and fair lending laws and regulations,” the Senators wrote. “Navy Federal’s members have made countless sacrifices in their service to our country. We must do all we can to ensure illegal barriers are not placed on their path to homeownership.”

The letter was also signed on to by Senators Raphael Warnock (D-GA), Tina Smith(D-Minn.), John Fetterman(D-PA), Tim Kaine(D-Va.) Chris Van Hollen(D-MD), and Bob Menendez(D-NJ).



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