✅ Pressure Mounts Over Navy Federal's Alleged Mortgage Loan Disparities
Carl Carr (center) speaks during a press conference on Feb. 22, 2023.
Attorneys for nine Navy Federal Credit Union members, who were allegedly denied a mortgage because of their race, stepped up their pressure on the world's largest financial cooperative during an emotional press conference.
"Let me say at the outset that we wanted to have this press conference
at the National Action Network House of Justice to show that this is not
just some complainants and some lawyers. This is a civil rights issue
that all of us will weigh in behind these attorneys to deal with the
inequities that appear to be deliberate and intentional."
Credit Union Times [link] Peter Strozniak| February 22, 2024 at 05:40 PM
✅ And has all sorts of painful consequences:
Mary
McDuffie will retire as president and CEO of Navy Federal Credit Union
where she has worked for 24 years. Her successor, Chief Operating
Officer Dietrich Kuhlmann, will take over on March 1. ["American Banker" newspaper - 2/21/2024]
... h-m-m, class action lawyers usually start at the top. NavyFed is the largest credit union. Who would be next in line....??
Was asked if the SECU Board and Ms. Brady haved rescinded their intentions to implement risk-based lending on SECU mortgages loans?
ReplyDeleteDo not know, have heard no announcement.
Might be a good Advisory Board question, if senior leadership refuses to be transparent on the issue.
My experience as an advisory board member from the last 2 years, now starting 3 since Haze and the Brady Bunch is that the Advisory Board is no longer a member board who is asked to advise on anything because we are not given any information until after the fact, if then. We are to sit, listen and watch whatever we may be presented and if we do express any opinions or ask questions it goes no where. We will no longer be taken to a restaurant for a nice meal but will meet in a branch conference room and have a catered meal of some sort brought in. We were told at the end of 2023 this was to save money yet how much of our money has been wasted starting with the $6M to bring in Haze? The $$ list is LONG and nothing to benefit members. 4 more in '24!!!!!
DeleteTake the power away from the people and give it to a few ... you know what they call this ...
DeleteThere are currently 5 Risk Based Lending tiers at SECU. Would you agree that someone in any individual tier is paying a slightly higher rate than they deserve and someone is paying a slightly lower rate they they deserve? The more credit scores in a group the less accurate it becomes. The bigger the tier the bigger the discrepancy since EVERY score carries its own risk profile. (That's what makes a score a score.)
ReplyDeleteCouple of options…
One is to have a different interest rate structure for each credit score if you desire to be completely accurate. There are 400 credit scores (450 is the lowest and 850 the highest) so the only totally accurate way to implement such a system is to have 400 rate structures. Seem a bit daunting? Hard to track? Hard to keep updated? Possibly hard to explain?
Or you could just give every member your best rate. Seems pretty simple, would eliminate bias and prejudice, easy to understand and implement…naw, forget it. That’s not sophisticated enough for “industry standard”.
If SECU doesn't find its Soul quickly it's going to have the same industry standard as Blockbuster and Kodak.
Of course I would vote for option 2, and so would the SECU membership if they were allowed to "raise their hands"!
DeleteEven with option 1, you might note that each score whether 602, 731 or 543, etc is the "average" of millions of underlying, individual consumer credit files....so it is also an imperfect reflection of the actual borrower.
But you may have a point in that the Soul of SECU is evidently now defined as "average = good" in terms of performance and reputation. Think "industry standard" as the goal.
Risk Based Lending based on a credit score is Lazy Lending. Handing over your members to a 3rd party vendor to determine their financial future is obscene.
ReplyDeleteEspecially since the member no longer has any recourse in disagreeing with the credit score, or explaining why or appealing their case. No loan officer to talk to to determine what happened(medical bills, death, illness, life whammed the member) no appeal to a loan review committee of member's peers. Just a Yes or No based upon a very flawed number created by a secret system. What is wrong with this board and most of all Leigh Brady?! 4 more in 24!
DeleteMore the board than LB
Delete1:51 You got it backwards. board is just rubber stamp for bad management
Delete?? The ceo reports to the board. The board hires/fires the ceo and sets the agenda. The ceo is tasked with enacting their aims and goals.
DeleteWe are lost in the world of the rich get richer the poor get poorer ... These folks have no interest in Doing the Right Thing!
ReplyDeleteThey think what they are doing is right ... sigh ...
50 billion value and growing slow but steady wasn't enough ... always focused on the wrong thing greed will ruin you and everything you touch. You're seeing it play out in real time.
Not like the Board/Brady are unaware. https://www.secujustasking.com/2023/12/the-secu-board-race-based-lending-no-of.html
ReplyDelete