House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) said Navy Federal Credit Union must explain itself to Congress following last week’s CNN report of its wide racial disparities in mortgage approval rates.
Details: In a news release, Waters said Navy Federal must explain how such practices took place, the immediate steps it is taking to correct the harm done, and who in management will be held responsible. Waters also urged the Consumer Financial Protection Bureau, National Credit Union Administration, and other appropriate agencies to investigate.
CNN Report: Citing 2022 CFPB data, CNN said the $165-billion-asset institution had racial disparities even among applicants with similar incomes and debt-to-income ratios. The report noted that credit unions are exempt from Community Reinvestment Act oversight, unlike banks.
ICBA Response: ICBA shared the article on X and renewed its request that Congress hold hearings on credit unions. In a separate post, ICBA President and CEO Rebeca Romero Rainey cited her recent LinkedIn article responding to Navy Federal’s new “Community Bank” brand and calling on Congress to investigate credit union policies.
More on Credit Unions: Amid ongoing credit union acquisitions of community banks and increased attention on credit union policy, ICBA has:
Launched targeted ads and a new website making clear to consumers that “Something’s Wrong” with credit union policy.
Conducted an ad campaign directing congressional offices to questions they should ask credit union executives in Washington for advocacy meetings.
Renewed its call for Congress to act on credit union bank acquisitions.
Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on their members of Congress to hold a hearing on the National Credit Union Administration’s lax oversight. Additional resources—including state fact sheets, a messaging playbook, and a customizable op-ed—are available on the ICBA website.
