WASHINGTON, D.C. – The Defense Credit Union Council (DCUC) is urging NCUA to 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 cited 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,” the trade group stated.
“As federal regulators shift toward clarity and intent-based enforcement, it is critical that NCUA examiners adopt a consistent approach,” Anthony Hernandez, DCUC president/CEO said in a statement. “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.”
The Recommendations
In its letter, DCUC recommended 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.
Additional Citation
DCUC’s letter also cited the Consumer Financial Protection Bureau’s 2025 enforcement priorities, which now focus exclusively on clear consumer harm and intentional discrimination. It noted 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,” Jason Stverak, DCUC chief advocacy officer, added in a statement. “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.”
