Navy Federal says external review finds ‘non-race factors' explained mortgage approval disparities

The nation’s largest credit union recently responded to concerns raised about racial gaps in its mortgage approval rates. An external review commissioned by the credit union found no evidence of race-based decision making in its mortgage underwriting. The credit union attributed the disparities in approval rates to legitimate, non-race factors such as income verification and incomplete credit applications. The review also took into account other non-public factors, including applicants’ credit scores. The credit union dismissed a lawsuit from Black and Latino borrowers, citing insufficient evidence of discrimination. The credit union stated that it is examining initiatives to address systemic barriers to homeownership and expand access to credit for its diverse community of members.