Independent review clears Navy Federal of discrimination in wake of CNN article

An independent reviewer has cleared Navy Federal Credit Union of discrimination months after a CNN article highlighted high rates of mortgage rejections for the credit union's black applicants.

The article, titled "The nation’s largest credit union rejected more than half its Black conventional mortgage applicants" stated that Navy Federal had approved more than 75% of white applicants for conventional mortgages in 2022, but less than 50% of black applicants seeking the same type of lone. The article did not directly allege discrimination, but included suggestions from rejected borrowers to that effect, the review found.

Navy Federal subsequently hired Debo Adegbile of WilmerHale to conduct an independent review of its practices. A former commissioner of the U.S. Commission on Civil Rights, Adegbile cleared Navy Federal of any discrimination and insisted that disparities in mortgage approvals were the results of individualized factors.

"CNN’s analysis was incomplete, and the article’s suggestion that Navy Federal discriminates against its members is unsupported. In fact, our review found that when all relevant factors are controlled for, which CNN did not do, the difference in approval rates between Black and White borrowers falls to less than 1%," he said in a statement. "The remaining difference in approval rates is explained by legitimate, non-race factors like income verification and incomplete credit applications. Navy Federal is exploring opportunities to enhance its mortgage lending practices and drive further access to home ownership."

"That external review confirmed what we at Navy Federal know to be true – we treat our members fairly, regardless of their race or background," the credit union said of Adegbile's findings.

"Navy Federal values each and every one of our members. Black members make up one in four of our members, and we rank first among large lenders in the percentage of mortgage loans made to Black borrowers," the firm declared. "We are proud to serve as an industry leader in expanding economic opportunity for our 13 million members, and we are committed to identifying opportunities to further drive homeownership."

"Working with our internal stakeholders and external partners, we are currently examining initiatives to build on our mission of expanding access to credit for our diverse community of members and continue our efforts to address systemic barriers to homeownership," it went on. "This is a challenge that requires action across the industry, and we are working to make sure we do our part." 

CNN did not respond to Just the News for comment.

Ben Whedon is an editor and reporter for Just the News. Follow him on X, formerly Twitter.