Pursuant to Letter to Credit Unions 25-CU-04, issued on Sept. 4, 2025, the National Credit Union Administration (NCUA) is removing all references to disparate impact liability from its Fair Lending Guide and supervisory materials. This decision follows Executive Order 14281, issued in April 2025, which directs federal agencies to eliminate the use of disparate impact liability “to the maximum degree possible”.

Consistent with the Letter to Credit Unions, the NCUA is instructing its examiners to no longer request, review or conclude on, or follow-up on:

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

Even though the NCUA is no longer employing disparate impact analysis, it is still focused on fair lending in general. The administration will continue to conduct fair lending risk assessments, analyze Home Mortgage Disclosure Act (HMDA) data for evidence of disparate treatment, conduct risk-based fair lending exams and penalize credit unions when violations are detected.

Needing assistance to ensure your credit union remains compliant? Rely on Doeren Mayhew’s compliance pros to help pave the path to a compliant lending program.