WASHINGTON—The Office of the Comptroller of the Currency (OCC) has eliminated references to supervising banks for disparate impact liability from the “Fair Lending” booklet of the Comptroller’s Handbook and has begun removing similar language from other guidance, the OCC stated in a bulletin.
At the same time, the OCC has directed its examiners to stop evaluating institutions for potential disparate impact.
The OCC’s discontinuation of examining for disparate impact applies to community banks, the agency noted.
The OCC noted that n April 23, 2025, the President issued Executive Order (EO) 14281, Restoring Equality of Opportunity and Meritocracy. EO 14281 directs agencies to eliminate the use of disparate impact liability in all contexts.
“Consistent with EO 14281, the OCC supervisory process for fair lending compliance no longer includes examining for disparate impact liability,” the OCC said, adding that examiners will not request, review, or conclude on or follow-up on:
- Matters related to a bank’s disparate impact risk
- Internal disparate-impact risk analysis
- Disparate-impact risk assessment processes or procedures
“The OCC’s supervisory processes continue to include regularly conducting fair lending risk assessments, analyzing Home Mortgage Disclosure Act data for possible evidence of disparate treatment, conducting risk-based fair lending examinations, and taking appropriate action if evidence of disparate treatment is found,” the OCC stated. “The OCC expects banks to provide fair access to financial services, treat customers fairly, and comply with all applicable laws and regulations.”