ALEXANDRIA, Va. –NCUA has issued a notice of proposed rulemaking to codify the elimination of reputation risk from its supervisory program. As the CU Daily reported earlier, the agency announced it has ceased using reputation risk and equivalent concepts in the examination and supervisory process.
The agency said the proposed rule would also prohibit it from instructing credit unions to close accounts, refrain from providing, or altogether terminating products and services on the basis of a person or entity’s protected class or political views.
‘Subjective & Ambiguous’
“NCUA has determined that assessing reputation risk is subjective, ambiguous, and lacking in measurable criteria,” the agency said in a statement. “The proposed rule is intended to ground NCUA’s supervision and examination programs in data-driven conclusions to eliminate the risk of individual perspectives driving the supervisory process.”
NCUA said Interested parties may find the proposed rule and submit public comments through the Federal eRulemaking Portal here. The docket number is NCUA–2025–0972.
