Rep. Sydney Kamlager-Dove (CA-37), alongside Rep. Steven Horsford (NV-04) and Emanuel Cleaver, II (MO-05), has urged federal regulators to make sure Navy Federal Credit Union adheres to fair lending practices following a disturbing report released about racial disparities in mortgage lending.
In a letter to the Consumer Financial Protection Bureau (CFPB) and National Credit Union Administration (NCUA), the three lawmakers write:
“Navy Federal holds more than $160 billion in assets and serves more than 13 million members including the military, veterans, and their families. While CNN’s analysis does not prove that Navy Federal has discriminated against current and former servicemembers on the basis of race and national origin, it raises significant questions about unexplained and statistically significant underwriting disparities.”
The letter continues: “Because of the asset size of Navy Federal, both the NCUA and CFPB have a legal obligation to supervise Navy Federal for compliance with fair lending laws, to make a referral to the DOJ if they have reason to believe the credit union had engaged in a pattern or practice of discrimination, and to engage in any appropriate supervisory or enforcement action.”
In a press release issued last Monday, the lawmakers argue that throughout the course of history, Black Americans have faced systematic barriers preventing them from owning homes and enjoying the benefits of homeownership, including the freedom to buy homes in their preferred neighborhoods because of discriminatory policies. Despite legislative efforts such as the Fair Housing Act, Equal Credit Opportunity Act, and the Civil Rights Act aimed at eradicating discrimination, contemporary manifestations of housing discrimination persist unabated.
The letter further raises points in regulation provided under the Fair Housing Act, which has the duty to “affirmatively further fair housing,” adding that regulators “must take meaningful actions that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.”
Read the letter in its entirety here.
