Black applicants were also found to be more than twice as likely to be denied than White applicants even when variables such as income, debt-to-income ratio, property value, downpayment percentage, and neighborhood characteristics were the same.
However, Bill Pearson, NFCU’s spokesperson denied the allegations of racial discrimination in its lending practices.
“Navy Federal Credit Union is committed to equal and equitable lending practices and strict adherence to all fair lending laws,” said Pearson.
“Employee training, fair lending statistical testing, third-party evaluations, and compliance reviews are embedded in our lending practices to ensure fairness across the board,” he added.
Pearson also claimed that the analysis did not accurately reflect the credit union’s practices because it did not take credit score, available cash deposits, and relationship history with the lender into account.
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