WASHINGTON, D.C (July 16, 2025) |
The Defense Credit Union Council (DCUC) recently wrote to the National Credit Union Administration (NCUA) in an effort to request it revise its fair lending supervision policies to align with recent federal regulatory direction—specifically, by removing disparate-impact analysis from examiner reviews.
In a letter to NCUA Chairman, the Honorable Kyle Hauptman, DCUC referenced the Office of the Comptroller of the Currency’s (OCC) July 14 announcement eliminating disparate-impact liability from its Fair Lending Handbook. This move, driven by Executive Order 14281 (“Restoring Equality of Opportunity and Meritocracy”), reflects a broader federal shift toward prioritizing enforcement against intentional discrimination rather than statistical disparities.
“As federal regulators shift toward clarity and intent-based enforcement, it is critical that NCUA examiners adopt a consistent approach,” said Anthony Hernandez, DCUC President/CEO. “Credit unions are deeply committed to fair lending, but disparate-impact exams add unnecessary compliance burdens—especially when other agencies no longer pursue them. Aligning with OCC and CFPB guidance will enhance exam transparency and ensure resources are focused on real consumer harm.”
In the letter, DCUC recommended the NCUA:
- Eliminate disparate-impact exams from examiner manuals and bulletins.
- Refocus fair lending reviews on evidence of actual discrimination (disparate treatment).
- Align supervisory policy with recent federal directives under Executive Order 14281.
- Reduce compliance burdens on small and mission-driven institutions like credit unions.
DCUC also cited the Consumer Financial Protection Bureau’s 2025 enforcement priorities, which now focus exclusively on clear consumer harm and intentional discrimination. The Department of Justice has also begun rolling back disparate-impact settlements, indicating a system-wide pivot away from statistical liability frameworks.
“We strongly support fair access to credit, but the rules must be clear, fair, and uniform,” adds Jason Stverak, DCUC Chief Advocacy Officer. “Credit unions shouldn’t be subject to different standards than banks. By eliminating disparate-impact from exams, NCUA would be aligning with both policy and practicality—ensuring fairness in regulation and equity in access.”
DCUC stands ready to support NCUA in implementing these changes and will continue advocating for smart, balanced oversight that upholds fair lending principles while reducing unnecessary burdens on credit unions.