Navy Federal Credit Union, the largest credit union in the U.S., is currently facing a class action lawsuit filed by Civil Rights Attorneys Benjamin Crump and Adam Levitt on behalf of Cherelle Jacob and her armed services husband from Washington state, and Laquita Oliver, a capital improvement project analyst from Miami-Dade County, Florida. The lawsuit alleges racial discrimination in home mortgage practices, contending that Navy Federal rejected the loan applications of these individuals despite their stellar credit scores and substantial incomes. The legal action claims violations of the Fair Housing Act of 1968 and the Equal Credit Opportunity Act, drawing attention to a CNN report revealing significant disparities in Navy Federal’s home mortgage approval rates, with a nearly 30% gap between white and Black applicants.
The complaint challenges Navy Federal’s claims of community support and diversity, highlighting the contradiction between the institution’s professed values and alleged systematic discrimination in housing, a violation of federal law. The lawsuit emphasizes that, despite Navy Federal’s commitment to serving military service members, defense personnel, veterans, and their families, there is a stark contrast in approval rates between white and Black borrowers for new conventional home purchase mortgages. The lawyers argue that this disparity constitutes a form of discrimination akin to “Banking While Black.”
The legal action draws parallels with a similar class action lawsuit filed by Crump in May against Wells Fargo, accusing the bank of denying loans to minority applicants at an “unprecedented rate” during the COVID-19 pandemic. The case against Wells Fargo is still pending.
In response to the class-action suit, Navy Federal expressed its commitment to addressing the allegations seriously. The credit union announced that it has enlisted the expertise of Debo P. Adegbile, a prominent civil rights lawyer and former commissioner on the United States Commission on Civil Rights, and his team. Their role is to assess Navy Federal’s mortgage-lending policies and practices and provide recommendations to enhance access to homeownership. The institution maintains its dedication to supporting the families of those who served their country while pledging to address any shortcomings in its mortgage approval processes to ensure fairness and equality. The legal proceedings will shed light on the alleged racial disparities in Navy Federal’s home mortgage practices, prompting a comprehensive review of its policies to uphold principles of justice and equal opportunity.
Read Also – A Student of Philosophy is Charged in the Rampage that Followed the Prague Mass Shooting
