NCUA removes references to ‘disparate impact’ in all materials

The NCUA announced the removal of all references to disparate impact liability from its Fair Lending Guide and other materials. Thursday’s action follows an April executive order directing federal agencies to eliminate the use of disparate impact in all contexts. 

According to the NCUA, its examination and supervision processes will no longer include reviews for disparate impact, and the agency will no longer request, review, or conclude or follow-up on:

• Matters related to a credit union’s disparate impact risk;
• Internal disparate-impact risk analysis; and
• Disparate-impact risk assessment processes or procedures.

Chairman Kyle Hauptman provided additional information on updated processes in a Letter to Credit Unions (25-CU-04) issued Thursday. 

The NCUA will continue to conduct fair lending examinations and risk assessments and take appropriate action if evidence of disparate treatment or other violations is found.