Reply to Woah, Navy Federal is hella racist

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I used to work in fair lending, and yes, these numbers are really big. I am curious to find out what it’s attributable to in their automated underwriting or practices. The only thing I can think of is some financial characteristic unique to black servicemembers - but what could that be? Does their underwriting not weight military pensions properly? Are white borrowers asking for and getting manual overrides at higher rates?

Here’s a theory: there is something wrong with the CU’s underwriting that penalizes a factor unique to servicemembers. There are a few CU loan officers in white-majority zip codes (NoVa?) that have figured out how to underwrite these manually, which is how the disparity results. [/quote]

Agreed. White loan officers are likely providing lower income white borrowers with manual overrides to the bank’s underwriting policies, but not providing the same courtesy to other ethnic groups. This results in a disparate impact with racially biased results. Dummies. [/quote]

I just have a hard time believing this is being done overtly - could it be that certain offices that happen to be majority white borrowed have figured it out?

The other weird thing is that NFCU actually apparently has a higher Black loan origination rate than average. So this is all about denials and not approvals (in real numbers). [/quote]

(But to add - NFCU ought to have found this in their own fair lending reviews, as should have their bank examiners. I wonder if CNN’s data analysis is wrong.)[/quote]

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