The Navy Federal Credit Union, the largest credit union in the US, has been found to have the widest disparity in mortgage approval rates between White and Black borrowers compared to other major lenders.

A recent analysis by CNN revealed that in 2022, Navy Federal approved over 75% of White borrowers who applied for a conventional home purchase mortgage, while less than 50% of Black borrowers were approved for the same type of loan.

Even when considering factors such as income and debt-to-income ratios, the approval gap between White and Black applicants remained significant. Shockingly, Navy Federal approved a higher percentage of applications from White borrowers with lower incomes compared to Black borrowers with higher incomes.

CNN’s deeper statistical analysis showed that Black applicants to Navy Federal were more than twice as likely to be denied than White applicants, even when all other variables were the same. This disparity persisted despite factors like income, debt-to-income ratio, property value, down payment percentage, and neighborhood characteristics.

Established in 1933 for Navy employees, Navy Federal now serves armed forces, DoD personnel, veterans, and their relatives. Despite over 13 million members and $165 billion in assets, the credit union rejected around 3,700 Black applicants for home purchase mortgages last year.

Furthermore, Navy Federal also approved Latino borrowers at significantly lower rates than their White counterparts, highlighting additional disparities within its lending practices. 

Navy Federal spokesperson Bill Pearson issued a statement to CNN, standing by the credit union’s lending practices.

“Navy Federal Credit Union is committed to equal and equitable lending practices and strict adherence to all fair lending laws,”

Pearson said.

“Employee training, fair lending statistical testing, third-party evaluations, and compliance reviews are embedded in our lending practices to ensure fairness across the board.”

#Clique, what are your thoughts?