Treasury Drops Disparate Impact Standard In Final Rule
By CU Today Staff —
WASHINGTON--The Treasury Department Monday published a final rule to remove disparate impact from its regulations. The action follows a 2025 Executive Order directing federal agencies to eliminate the use of disparate impact in all contexts, America's Credit Unions reported.
Of note, the NCUA previously removed all references to disparate impact liability from its Fair Lending Guide and other materials. Similarly, the CFPB finalized its updates to Regulation B—which implements the Equal Credit Opportunity Act—and the rule goes into effect July 21, ACU said.
Treasury’s final rule went into effect upon publication in the Federal Register on Aug. 3.
Originally reported by CU Today.