WASHINGTON — With one CU trade group saying it needs to be taken “seriously,” the Trump administration is rescinding 2022 interagency guidance that encouraged banks, credit unions and other lenders to establish special purpose credit programs to expand access to credit among groups that historically have received less lending and investment, and said there could be penalties for organizations that offer special programs to underserved markets.
An early interpretation by the Defense Credit Union Council indicates credit unions will not “automatically” be at risk, but it also urged every CU to pay attention to the announcement. In a statement to the CU Daily, meanwhile, America’s Credit Unions said credit unions retain the authority they held before the rescission of the 2022 guidance to offer adjusted underwriting or pricing to members who would not otherwise qualify.
In addition to NCUA, the Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, Department of Housing and Urban Development, Department of Justice and Federal Housing Finance Agency jointly announced the action in a Federal Register notice. The rescission became effective immediately upon publication Aug. 25.
The agencies said lenders should no longer rely on the February 2022 interagency statement or related guidance when developing special purpose credit programs, arguing that previous interpretations could permit discrimination prohibited by federal law.
The Initial Interpretation
“It’s our initial interpretation that this changes federal guidance and signals a more restrictive enforcement posture but does not automatically outlaw every special purpose credit program or place a credit union at risk simply because it offers responsible lending programs to underserved members,” Jason Stverak, chief advocacy officer with the Defense CU Council, said in a statement to the CU Daily. “Our understanding is that the underlying statutory and regulatory authority for special-purpose credit programs has not disappeared and that Regulation B continues to expressly recognize credit-assistance programs offered by not-for-profit organizations for the benefit of their members or economically disadvantaged people.
The 2022 guidance encouraged lenders to consider special purpose credit programs, or SPCPs, as a way to address disparities in access to credit. Such programs can provide credit under specified conditions to economically disadvantaged groups or other defined classes of borrowers.
The agencies said the earlier guidance gave assurances to lenders that were uncertain about whether such programs complied with the Equal Credit Opportunity Act, Regulation B and the Fair Housing Act.
“Lending to members of modest means is what Congress chartered credit unions to do,” America’s Credit Unions said in a statement. “Under current law, the Equal Credit Opportunity Act (ECOA) already exempts credit assistance programs administered by nonprofit organizations for the benefit of their members, and Regulation B implements that exemption. Credit unions retain the authority they held before the rescission of the 2022 guidance to offer adjusted underwriting or pricing to members who would not otherwise qualify.
“We will work with the NCUA to ensure examiners will treat these programs as authorized, so that credit unions do not step back from lending that remains lawful,” America’s Credit Unions added.
The New Policy
Under the new policy, the agencies said creditors may not discriminate against borrowers based on characteristics protected by federal law and that all special purpose credit programs must comply with ECOA, Regulation B and, when applicable, the Fair Housing Act.
“Federal law does not authorize any generalized remedial ‘equity’ initiatives absent specific cases of unlawful discrimination, and creditors should not rely upon previous guidance which may have suggested otherwise,” the agencies said in the Federal Register notice.
‘Should Take This Action Seriously’
“Credit unions as not-for-profit, member-owned institutions carry a long-established mission of expanding access to safe and affordable financial services,” said DCUC’s Stverak. “Serving underserved communities is not, by itself, discrimination, and credit unions should not be treated as suspect merely for fulfilling that mission. At the same time, credit unions should take this action seriously. The CFPB’s revised Regulation B restrictions impose significantly tighter requirements on special purpose credit programs offered by, or involving, for-profit organizations. Those programs may no longer use race, color, national origin or sex as eligibility factors.
“Credit unions participating with a for-profit CUSO, lender, vendor, or other partner should carefully review whether that relationship could bring the program within those provisions,” Stverak continued. “Credit unions are not suddenly subject to penalties merely because they maintain a lawful program intended to reach underserved borrowers. The risk arises if a program’s eligibility criteria or administration violates ECOA, Regulation B, the Fair Housing Act, or another applicable law. The rescission itself does not make the existence of an underserved-community lending program a violation.”
Follows Earlier Executive Orders
The agencies said the action follows several executive orders issued by President Donald Trump directing federal agencies to review regulations and guidance and eliminate policies the administration considers discriminatory or based on diversity, equity and inclusion principles.
The notice also points to changes made to Regulation B in April. According to the agencies, the earlier version of the regulation permitted lenders under certain circumstances to implement programs based on an applicant’s race, color, national origin or sex. The agencies said the revised regulation contains enhanced standards and eligibility criteria intended to reflect nondiscrimination requirements.
The administration also cited the U.S. Supreme Court’s 2023 decision in Students for Fair Admissions v. Harvard, which struck down race-conscious admissions policies at Harvard University and the University of North Carolina. The agencies said the court has subjected race-based policies to heightened scrutiny and has held that a general desire to remedy societal discrimination is insufficient to justify them.
Support for Safeguards
Stverak said DCUC has consistently supported fair, impartial, and nondiscriminatory lending.
“We’ve supported appropriate safeguards against discriminatory use of special purpose credit programs by for-profit entities,” he said in a statement. “We’ve also stressed that credit unions must retain the flexibility to collaborate with community organizations, fill credit gaps, and serve as a financial safety net for underserved communities. That remains our position.
“We will seek additional clarification from the NCUA and CFPB regarding how this rescission will be applied specifically to credit unions, and press for clear, consistent, and prospective examination guidance so that institutions acting in good faith are not penalized because federal interpretations shifted after a program was established.”
Make No Assumptions
In the meantime, Stverak said credit unions should not assume they must abruptly terminate lawful programs.
“They should review their programs, eligibility standards, documentation, and third-party relationships with counsel and compliance professionals,” DCUC’s chief advocacy officer said. “We will continue monitoring the agencies’ implementation and are prepared to respond formally if additional clarification or regulatory safeguards are necessary. We can protect borrowers from discrimination without discouraging responsible programs that provide affordable credit to people and communities too often overlooked by traditional lenders. Credit unions must be allowed to continue doing what they have always done best: responsibly serving people who need them most.”
Other Policies Withdrawn
The rescission follows several earlier actions by federal agencies to withdraw policies supporting special purpose credit programs.
HUD withdrew two guidance documents concerning special purpose credit programs and the Fair Housing Act in September 2025. The CFPB in June withdrew a 2020 advisory opinion addressing special purpose credit programs under Regulation B.
The administration’s latest action applies across federal banking, credit union, consumer protection and housing regulators, potentially affecting lenders that established or considered special lending programs based on the previous guidance.
The agencies said rescinding the 2022 statement is necessary to prevent creditors from relying on it “to engage in discriminatory activities that are inconsistent with ECOA and Regulation B and, to the extent applicable, the FHA.”
