Discrimination in Mortgage Lending: Navy Federal Credit Union Exposed

🚫Navy Federal Credit Union rejected over half of black applicants for conventional mortgages.

💁‍♂️A Kenyan immigrant with an excellent credit score and 100k down payment was denied by Navy Federal.

🏡Racial disparities in mortgage approval rates widen the black-white homeownership gap.

🔍Navy Federal was more than twice as likely to deny black mortgage applicants compared to white applicants with similar variables.

👥Systemic lending discrimination is a bigger issue beyond Navy Federal Credit Union.

What is the racial disparity in mortgage approval rates at Navy Federal Credit Union?

—Navy Federal Credit Union approved less than half of black applicants for conventional mortgages, while white borrowers were approved over 75% of the time.

Did Navy Federal Credit Union provide a reason for denying loans to black applicants?

—Navy Federal claimed excessive obligations and debt-to-income ratio as reasons for denial, but evidence suggests discriminatory practices.

How does racial discrimination in mortgage lending contribute to the homeownership gap?

—The disparity in mortgage approval rates widens the gap, making it more challenging for black individuals and families to become homeowners.

Is Navy Federal the only institution engaging in discriminatory lending practices?

—No, there have been numerous reports of discrimination in mortgage lending across various financial institutions.

Where can people file complaints if they believe they have faced discrimination in mortgage lending?

—People can file complaints with local Housing and Urban Development and the Consumer Financial Protection Bureau.

00:04Introduction to the topic of discrimination in mortgage lending.

03:36An example of a black borrower with an excellent credit score and down payment being denied by Navy Federal Credit Union.

05:53Navy Federal Credit Union approved less than half of black applicants for conventional mortgages.

09:17Discussion on the wider black-white homeownership gap caused by mortgage approval disparities.

11:36Navy Federal Credit Union rejected black mortgage applicants more than twice as often as white applicants with similar variables.

13:11Personal experience of discrimination in real estate in Michigan.

14:55Continued discussion on the systemic issue of lending discrimination.