The federal credit union regulator will no longer include reviews for disparate impact in its examination and supervision of federally insured credit unions, the agency said Thursday.
The National Credit Union Administration (NCUA) removed such references from its Fair Lending Guide as of Aug. 29, according to the online version of the guide; the changes are seen in a strike-through of a portion of text on p.8, included in an overview of the Equal Credit Opportunity Act (ECOA). NCUA Board Chairman Kyle Hauptman, in a Letter to Credit Unions (25-CU-04), said it has begun removing “disparate impact” references from other issuances as well.
The action follows an April 23 executive order (E.O. 14281) by President Donald Trump (R) titled “Restoring Equality of Opportunity and Meritocracy,” Hauptman said in the letter.
Along those lines, he said the agency has instructed examiners to “no longer request, review, or conclude on 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.
“The NCUA’s supervisory processes continue to include regularly conducting fair lending risk assessments, analyzing Home Mortgage Disclosure Act data for possible evidence of disparate treatment, conducting risk-based fair lending examinations, and taking appropriate action if evidence of disparate treatment is found,” Hauptman wrote.
It says the agency expects credit unions “to provide fair access to financial services, treat members fairly, and comply with all applicable laws and regulations.”
Leave a Reply