Reputation Risk Proposed Rule Submitted to Federal Register
Today the National Credit Union Administration (NCUA) issued a notice of proposed rulemaking to codify the elimination of reputation risk from its supervisory program. The agency previously announced it ceased using reputation risk and equivalent concepts in the examination and supervisory process.
The proposed rule would also prohibit NCUA from instructing credit unions to close accounts, refrain from providing, or altogether terminating products and services on the basis of a person or entity’s protected class or political views.
NCUA has determined that assessing reputation risk is subjective, ambiguous, and lacking in measurable criteria. The proposed rule is intended to ground NCUA’s supervision and examination programs in data-driven conclusions to eliminate the risk of individual perspectives driving the supervisory process.
Interested parties may find the proposed rule and submit public comments through the Federal eRulemaking Portal: https://www.regulations.gov. The docket number is NCUA–2025–0972.