Navy federal class action lawsuit brings calls for investigations

by Charlene Crowell A mortgage discrimination case that began with two plaintiffs last December was consolidated in late February with seven others to form a class action lawsuit alleging that Navy Federal Credit Union—the nation’s largest with 13.4 million members and $170.8 billion in assets—“systematically and intentionally discriminates against minority borrowers across the United States.”& The lawsuit alleges that Navy Federal, which serves current and former military members from all service sectors, denied loans for 52 percent of Black borrowers and 44 percent of Latino borrowers, while denying only 23 percent of White applicants& for home mortgage purchase& or& refinance& loans& and Home Equity Lines of Credit.& Affidavits of affected borrowers told stories of the financial and emotional distressed caused by qualified loan applicants having to find alternative—and often more costly—financing after being denied by their member-owned credit union.& The lawsuit, led by nationally-known attorney Ben Crump and his associate Adam Levitt, said the lender’s own data show& that Navy Federal approved loans for a higher percentage of white borrowers& annually& earning less than $62,000 a year than for Black loan applicants earning $140,000 or more. & & And when Navy Federal did approve a loan to a Black or...