NCUA Removes Disparate Impact References from Guidance

NCUA Letters to Credit Unions

Published September 4th, 2025

Detected March 13th, 2026

Summary

The NCUA has removed references to disparate impact liability from its Fair Lending Guide and other issuances, consistent with Executive Order 14281. Examiners will no longer request or review information related to a credit union's disparate impact risk.

View original document View source feed page

What changed

The National Credit Union Administration (NCUA) has issued guidance removing all references to disparate impact liability from its Fair Lending Guide and other related documents, in alignment with Executive Order 14281. This action means NCUA examiners will cease requesting, reviewing, or following up on matters concerning a credit union's disparate impact risk, including internal analyses and assessments.

While the NCUA will continue to assess for disparate treatment and ensure fair access to financial services, credit unions are no longer expected to manage or report on disparate impact risk. This change significantly alters the scope of fair lending examinations and compliance expectations for federally insured credit unions, shifting focus away from potential disparate impact and solely towards demonstrable disparate treatment.

What to do next

Update internal fair lending policies and procedures to remove references to disparate impact.
Discontinue disparate impact risk analysis and assessment processes.
Ensure continued compliance with fair lending laws and regulations, focusing on disparate treatment.

Source document (simplified)

Removal of Disparate Impact

25-CU-04 / September 2025 Removal of Disparate Impact To Federally Insured Credit Unions Subject Consumer Lending Status Active To Federally Insured Credit Unions Subj Removal of Disparate Impact Dear Boards of Directors and Chief Executive Officers:

On April 23, 2025, the President issued Executive Order (EO) 14281, Restoring Equality of Opportunity and Meritocracy. EO 14281 states that it is “the policy of the United States to eliminate the use of disparate-impact liability in all contexts to the maximum degree possible.”

Consistent with EO 14281, the NCUA has decided to remove references to disparate impact liability from its “Fair Lending Guide” and has commenced removing references in other issuances. Concurrently, the NCUA has instructed its examiners that they will 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.

The NCUA expects credit unions to provide fair access to financial services, treat members fairly, and comply with all applicable laws and regulations.

Please contact your NCUA examiner or the NCUA’s Office of Consumer Financial Protection if you have any questions about disparate impact.

Sincerely,

/s/

Kyle Hauptman
Chairman

Last modified on

09/04/25