The National Credit Union Administration (NCUA) has announced the removal of all references to disparate impact liability from its Fair Lending Guide and other related documents. This decision is in line with White House Executive Order 14281, Restoring Equality of Opportunity and Meritocracy, which instructs federal agencies to eliminate the use of disparate impact liability in all areas.
According to the NCUA, its examination and supervision processes will no longer include reviews for disparate impact. The agency stated it will not request, review, or follow up on matters related to a credit union’s disparate impact risk, internal disparate-impact risk analysis, or disparate-impact risk assessment processes or procedures.
Despite these changes, the NCUA said it would continue to conduct fair lending examinations and risk assessments as required by law. The agency emphasized that it would take appropriate action if evidence of disparate treatment or other violations are found.
The NCUA is an independent federal agency established by Congress to regulate, charter, and supervise federal credit unions. It operates the National Credit Union Share Insurance Fund, which insures deposits for more than 143 million account holders in both federal credit unions and most state-chartered credit unions across the United States.
For media inquiries, contact OEACmail@ncua.gov or call 703.518.6330.
