On Saturday, March 23, 2024, CNN reported on Navy Federal Credit Union, responding to concerns raised by CNN’s 2023 report about racial disparities in mortgage approval rates, commissioned an external review by civil rights lawyer Debo Adegbile. Co-Lead Counsel Hassan Zavareei of Tycko & Zavareei LLP, Adam J. Levitt of DiCello Levitt LLP, and Ben Crump of Ben Crump Law PLLC who represent minority Navy Federal members in the discriminatory lending lawsuit against the credit union, said about the report:
“Rather than take responsibility for its discriminatory lending practices and using the CNN report as an opportunity to right the ship, Navy Federal has decided to double down. Tellingly, the lawyer who conducted Navy Federal’s internal review and who claims to have found ‘no discrimination’ is a partner at the same law firm that Navy Federal hired to defend itself from this lawsuit in court–a classic conflict of interest. Moreover, Navy Federal hasn’t actually released the analysis and report that it claims exonerates it. If Navy Federal truly believes what it has said, Navy Federal should immediately put out the full investigative report and data analysis so that Navy Federal’s members have an opportunity for themselves to review the findings.”
CNN reported that the review concluded that race was not a factor in mortgage underwriting decisions and that differences in approval rates between white and Black borrowers could be largely explained by legitimate, non-race factors such as income verification and incomplete credit applications. Adegbile’s analysis, however, has been met with skepticism due to his firm’s involvement in defending Navy Federal in a discrimination lawsuit filed by Black and Latino borrowers whom TZ and co-counsel represent. Navy Federal also faces criticism for not providing complete transparency regarding the review process.
The plaintiffs are represented by court appointed Co-Lead Counsel Hassan Zavareei of Tycko & Zavareei LLP, Adam J. Levitt of DiCello Levitt LLP, and Ben Crump of Ben Crump Law PLLC. The TZ team also includes attorneys Wes Griffith, Peter Silva, Andrea R. Gold, Shana Khader, Cort Carlson, and paralegal Emma Bass.
The consolidated case is Laquita Oliver, et al. v. Navy Federal Credit Union, Case No.: 1:23-cv-01798-LMB-WEF in the United States District Court for the Eastern District of Virginia, Alexandria Division.