Credit unions can now serve clients regulators thought were "reputational risks"

The National Credit Union Administration wants to stop punishing credit unions for "reputation risk." This means the agency cannot force credit unions to drop customers just because their views or activities are unpopular.

This change means credit unions can serve customers who might hold unpopular political or social views. Before, regulators could pressure credit unions to cut ties with these customers, citing "reputation risk." Now, credit unions can make their own decisions about who to serve, as long as the activities are legal.