WASHINGTON—Senate Banking Committee Ranking Member Elizabeth Warren (D-MA) and a group of Senate Democrats have sent letters to the heads of the Office of the Comptroller of the Currency, FDIC and NCUA criticizing the agencies’ decisions to remove references to disparate impact from supervisory materials.
The letters were addressed to Comptroller Jonathan Gould, FDIC Chairman Travis Hill and NCUA Chairman Kyle S. Hauptman. Warren was joined by Sens. Angela D. Alsobrooks (D-MD), Chris Van Hollen (D-MD), Tina Smith (D-M), Catherine Cortez Masto (D-NV), Jack Reed (D-RI) and Cory Booker (D-NJ).
In the letters, the senators argue that eliminating disparate impact liability from examination documents would significantly weaken longstanding civil-rights safeguards and make it easier for financial institutions to discriminate against borrowers based on protected characteristics such as race and gender. They urged the agencies to immediately reinstate disparate impact analysis so examiners can use the full range of tools available to identify and address discrimination in financial services.
The lawmakers tied the agencies’ actions to an April 2025 executive order signed by President Donald Trump directing agencies to eliminate the use of disparate-impact liability to the maximum extent possible. Following that order, the regulators removed references to disparate impact from their examination manuals, the senators wrote, warning that the change would make it harder to uncover discrimination by banks, credit unions, mortgage originators and other lenders — particularly in cases where discriminatory patterns may only become evident through after-the-fact analysis.
The senators have requested a briefing from the agencies on their actions and any plans to address the issue by March 11, 2026.
CU Trades Respond
"Credit unions consistently step in where banks refuse to, providing safe, affordable financial services to communities that have been systematically overlooked for decades," stated Scott Simpson, president/CEO of America’s Credit Unions. "We share concerns about discriminatory practices, but too often these policies miss the mark and end up punishing the very institutions doing the most to close access gaps. Instead of adding layers of unnecessary burdens that harm the people they intend to protect, policymakers should focus on solutions that actually expand access, streamline processes, and support the organizations, such as credit unions, that are truly serving underserved Americans."
Defense Credit Union Council Chief Advocacy Officer Jason Stverak emphasized, "All credit unions are committed to fair lending and equal access to financial services for every servicemember, veteran, and military family we serve. Defense credit unions in particular operate in some of the most diverse communities in America and take their obligations under fair-lending laws extremely seriously. As regulatory discussions continue, what credit unions need most is clarity and consistency.
"We encourage the National Credit Union Administration to provide transparent guidance on supervisory expectations so institutions of all sizes can confidently comply with the law while continuing to serve their members without disruption," continued Stverak. "Strong consumer protections and clear, stable regulatory standards are not mutually exclusive. Both are essential to ensuring that credit unions remain safe, sound, and focused on their mission.”