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Largest US Credit Union Scrutinized Over Significant Gaps Between Approval Rates for White and Black Borrowers

NNPA NEWSWIRE — Navy Federal approved a higher percentage of applications from white borrowers earning less than $62,000 annually than Black borrowers earning $140,000 or more.
The post Largest US Credit Union Scrutinized Over Significant Gaps Between Approval Rates for White and Black Borrowers first appeared on BlackPressUSA.

Published

11 months ago

December 15, 2023

Stacy M. Brown

By Stacy M. Brown
NNPA Newswire Senior National Correspondent
@StacyBrownMedia

Navy Federal Credit Union, the largest credit union in the United States, is under fire for exhibiting the most substantial racial disparities in mortgage approval rates among major lenders. The disparities, reaching new heights in 2022, underscored a pronounced contrast in approval rates for white and Black borrowers. Recent Consumer Financial Protection Bureau data indicated that Navy Federal approved over 75% of white applicants for new conventional home purchase mortgages in 2022. In stark contrast, the approval rate for Black borrowers applying for the same type of loan was less than 50%. The nearly 29-percentage-point gap in approval rates at Navy Federal stands out as the widest among the top 50 lenders originating the most mortgage loans last year.

Even when considering similar incomes and debt-to-income ratios, the racial disparity persisted. Navy Federal approved a higher percentage of applications from white borrowers earning less than $62,000 annually than Black borrowers earning $140,000 or more. A detailed statistical analysis conducted by CNN revealed that Black applicants to Navy Federal were more than twice as likely to be denied compared to white applicants, even when multiple variables, including income, debt-to-income ratio, property value, downpayment percentage, and neighborhood characteristics, were identical.

Navy Federal, initially founded in 1933 to serve Navy employees and now open to all armed forces members, Department of Defense personnel, veterans, and their relatives, boasts about 13 million members and holds over $165 billion in assets. Last year, the credit union rejected approximately 3,700 Black applicants for home purchase mortgages, potentially impeding their path to homeownership, notably as interest rates spiked. Bill Pearson, a spokesperson for Navy Federal, defended the credit union’s lending practices. “Navy Federal Credit Union is committed to equal and equitable lending practices and strict adherence to all fair lending laws,” Pearson stated. However, experts in mortgage lending and advocates for fair housing express concerns about the institution’s practices, emphasizing that the racial gaps in approval rates raise questions about Navy Federal’s commitment to fairness.

The widening gap in homeownership rates between white and Black Americans, exemplified by Navy Federal’s 2022 approval rates of 77.1% for White applicants, 55.8% for Latino applicants, and 48.5% for Black applicants, mirrors a broader national issue. In comparison, other major lenders like Wells Fargo, US Bank, and Bank of America exhibit smaller racial approval rate gaps. CNN reported that advocates have urged lenders to improve automated underwriting systems to reduce racial disparities in decision-making. Some experts pointed out that Navy Federal’s unique member base may have different financial characteristics than large banks, potentially influencing the observed racial differences.

While federal regulators review banks’ lending under the Community Reinvestment Act, the network reported that credit unions like Navy Federal are not subject to the same scrutiny. Calls for legal revisions to ensure credit unions adhere to similar rules as banks have continued.

Sara Pratt, a lawyer at Relman Colfax, noted that racial disparities in mortgage lending may also be linked to loan officers assisting white borrowers more than Black ones. Despite having no evidence of such practices at Navy Federal, Pratt emphasized that the approval rate gaps demand explanations from the lender. Federal law stipulates that lenders can be in violation of fair lending rules without intentional racism, as a “disparate impact” on minorities can lead to discrimination claims. This is not the first time Navy Federal has faced scrutiny over racial disparities, as a previous analysis in 2019 indicated significant gaps. This trend appears to have only intensified since then.

The post Largest US Credit Union Scrutinized Over Significant Gaps Between Approval Rates for White and Black Borrowers first appeared on BlackPressUSA.

Stacy M. Brown

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OP-ED: The Illusion of Allyship. White Women, Your Yard Signs Mean Nothing to Me

NNPA NEWSWIRE – “The blue bracelets are something White women are wearing so others can see that they didn’t vote for Trump,” says Liberal Lisa from Oklahoma on X. Chile, bye. These bracelets are hollow symbols, empty gestures that mean nothing to me. An accessory to claim distance from Trump’s legacy is superficial comfort, while the choice to not stand with us in the voting booth is far more profound.

Published

2 weeks ago

November 9, 2024

Oakland Post

Political yard signs can symbolize intentions and allegiance. But this year, they’ve also symbolized betrayal. During this general election, Black women were led to believe that more White women would stand with us. Exit polls, however, told a different story. Despite overwhelming displays of support, more White women still chose to vote for the convicted felon, reality TV star, and rapist. White women answered the call but left us hanging at the polls.

A Familiar Disappointment

I live in DeKalb County, Georgia, and the abundance of Harris-Walz yard signs could’ve fooled me. But I’ve seen this before, back when Stacey Abrams ran for governor. White women showed up, put up signs, attended rallies, knocked on doors, and phone-banked. Yet, when it came time to vote, they let us down—not once but twice. I’ve been here for over 15 years, and if there’s one thing I know, it’s that political signs are symbols without weight.

In every election, I’ve talked with White women. Most aren’t the primary earners in their families and vote along party lines, aligning with the preferences of their fathers and husbands. These conversations reveal a reluctance to break from tradition, even when their votes affect women and certainly when their votes impact the lives of people who look like me.

The Illusion of Solidarity—Symbols Are Not Enough

On social media, I’m seeing White women posting pictures of blue bracelets to “prove” they didn’t vote for Trump. “The blue bracelets are something White women are wearing so others can see that they didn’t vote for Trump,” says Liberal Lisa from Oklahoma on X. Chile, bye. These bracelets are hollow symbols, empty gestures that mean nothing to me. An accessory to claim distance from Trump’s legacy is superficial comfort, while the choice to not stand with us in the voting booth is far more profound.

I’ve seen Black Lives Matter signs and black squares posted on Instagram to “prove” support for Black people, but we now know that was a lie, too. Will those same people who claimed Black lives mattered now take down their Harris-Walz signs and show their true selves?

Navigating these truths is a daily struggle for me—professionally and socially. White women often misuse their privilege, supporting us only when it’s convenient. Seeing overqualified Black women sabotaged or abandoned by White women at critical moments is a constant emotional challenge. It’s exhausting to live with this reality, especially when solidarity seems like something they pick up and discard at will.

One clever campaign ad from Harris-Walz that spoke directly to White women. “Your Vote, Your Choice” emphasized that their vote was private—independent of their household situation. Another was from Olivia Howell Dreizen, the “Vote Without Fear” campaign, which empowered women to consider the greater impact of their choices. But it seems many still couldn’t choose the roadmap to freedom—even when it was handed to them.

A Call for Action Beyond Words

White women, I want to believe you care, but actions speak louder than yard signs, bracelets, or Instagram posts. Show up in our communities, advocate in your workplaces, and stand up to dismantle the structures that uphold white supremacy. Only through real action will we know where you stand.

If you choose not to act, we see you—and we know exactly where you stand. Good luck these next four years.

Disclaimer: The views and opinions expressed in this article do not necessarily reflect the official policy or position of BlackPressUSA.com or the National Newspaper Publishers Association.

Oakland Post

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Supernova Parenting Conference Empowers Over 100 Parents with Resources for Neurodivergence and Mental Health

The inaugural Supernova Parenting Conference was co-hosted by Natasha Nelson, known as Supernova Momma, and Yolanda Walker, founder of Parenting Decolonized. It brought together over 100 parents, caregivers, and educators dedicated to fostering understanding and support for neurodivergent children and mental health challenges. The conference provided invaluable resources, expert insights, and a collaborative space for […]

Published

2 weeks ago

November 7, 2024

BlackPressUSA.com

The event featured a variety of workshops, panel discussions, and keynote speeches from leading experts in neurodiversity and mental health. Attendees left with practical tools and strategies to enhance their parenting journeys, emphasizing the importance of understanding and supporting the unique needs of neurodivergent children.

“While the conference was a tremendous success, we believe that our work doesn’t end here,” said Natasha Nelson. “It’s crucial to continue providing ongoing support and resources for parents as they navigate this important journey. We want to ensure families can access the tools they need long after the conference.”

To extend the momentum generated at the conference, Natasha and Yolanda are excited to announce the launch of the Supernova Parenting Community. This membership-based initiative aims to offer a safe and supportive environment for parents and caregivers to continue their growth as conscious parents.

Membership is available for as little as $5 a month via Patreon, making it accessible for all families seeking support.

“We know that parenting can be a challenging journey, especially when navigating neurodivergence and mental health issues,” Yolanda Walker added. “Our goal is to build a community where parents feel seen, heard, and supported. We hope you’ll join us in this vital work.”

For more information about the Supernova Parenting Community and to sign up for membership, please visit supernovaparenting.org