The National Credit Union Administration (NCUA) issued a notice of proposed rulemaking to codify the elimination of reputation risk from its supervisory program and examination process. The proposal would also prohibit NCUA from directing credit unions to close accounts, refrain from providing, or terminate products and services based on a person or entity’s protected class or political views. NCUA framed the change as a move away from subjective and ambiguous assessments, stating that reputation risk lacks measurable criteria. The proposal is intended to ground supervision and examinations in data-driven conclusions and reduce the potential for individual perspectives to influence supervisory outcomes. Public comments may be submitted via the Federal eRulemaking Portal under docket number NCUA–2025–0972.
National Credit Union Administration 2025-10-20
National Credit Union Administration proposes rule to remove reputation risk from supervision and bar account closure directives based on protected class or political views
The National Credit Union Administration (NCUA) proposed a rule to remove reputation risk from its supervisory program, aiming to eliminate subjective assessments. The rule would prevent NCUA from directing credit unions to close accounts or terminate services based on protected class or political views, promoting data-driven supervision.