Most Wisconsin Banks Exempt from Section 1071 Rule After Latest Round of Revisions
It has been a long process since the Bureau of Consumer Financial Protection (CFPB) issued its first rule in May 2023 to implement changes to the Equal Credit Opportunity Act made by Section 1071 of the Dodd-Frank Act (Section 1071). The changes require covered financial institutions to collect and report certain small business loan data. Litigation soon followed which resulted in revisions to the mandatory compliance dates via interim final rules. Then, in November 2025, CFPB proposed revisions to amend the 2023 rule having reconsidered the impact on smaller lenders and its approach to advancing the statutory purpose of Section 1071.
After reviewing comments received to proposed changes in November 2025, CFPB published a final rule in the Federal Register May 1, 2026, narrowing the rule’s scope of applicability and reducing the number of data points. The final rule is effective June 30, 2026. The compliance date for the rule is January 1, 2028, for all covered financial institutions. The following is a summary of the changes.
May 2026 Revisions
The final rule made the following revisions to the definitions of “covered credit transactions”, “covered financial institutions”, and “small business” to better: reflect core products traditionally used for small businesses’ formation and operation, recognize what is a true small business, and balance the need of collected data with the cost and burden of implementation on small creditors. CFPB also reconsidered the impacted data and eliminated several items from being collected and reported. The final rule also narrowed the scope of covered financial institutions and raised the origination threshold of covered credit transactions.
Revised Covered Credit Transactions Definition
In the May 2026 final rule, CFPB concluded that the initial iterations of data collection should focus on core, widely-used lending products most likely to be foundational to small businesses’ formation and operation. The final rule therefore excludes merchant cash advances, agricultural lending, and small dollar loans in an amount of $1,000 or less from the definition of covered credit transaction.
The rule defines “agricultural lending” as a transaction to fund the production of crops, fruits, vegetables, and livestock, or to fund the purchase or refinance of capital assets such as farmland, machinery and equipment, breeder livestock, and farm real estate improvements. The final rule also includes an inflation adjuster such that the $1,000 small dollar loan amount will be adjusted for inflation in $100 increments every five years after January 1, 2030. The changes narrow the number of loans subject to the rule.
Revised Covered Financial Institutions Definition
Also, in the May 2026 final rule, CFPB concluded that the initial iterations of data collection should focus on larger core lenders. The final rule therefore contains two changes to the covered financial institutions definition. First, the final rule excludes Farm Credit System (FCS) lenders from coverage. Second, the final rule raised the origination threshold from 100 to 1,000 covered credit transactions for each of two consecutive years. As a result of the change, a “covered financial institution” is now defined as a financial institution, other than a FCS lender, that originated at least 1,000 covered credit transactions for small businesses in each of the two preceding calendar years.
Special Focus
Revised Small Business Definition
The May 2026 final rule revised the definition of “small business” to mean a business with gross annual revenue in the preceding fiscal year of $1 million or less. The $1 million threshold is to be adjusted for inflation in $100,000 increments every five years after January 1, 2030. The revised threshold is a decrease from the 2023 final rule threshold of $5 million or less.
Eliminated Data Points
The Section 1071 rule requires covered financial institutions to collect and report data regarding small business loans. Some data points were specially listed within the DoddFrank Act; others were items required at the discretion of CFPB. The May 2026 final rule eliminates several discretionary data points from collection. The discretionary data points eliminated are application method, application recipient, denial reasons, pricing information, and number of workers.
The May 2026 final rule also eliminated the requirement to obtain information about LBGTQI+ owned status and revisions were made to the text of the sample data form.
Removing References to Discouragement
In the original rule, sections 1002.107(c)(1) and (c)(2) and corresponding commentary set forth monitoring requirements and assumed low response rates were a result of lenders discouraging applicants from responding to a request of information. The May 2026 final rule revised section 1002.17(c) and the associated commentary to adopt a flexible standard and removed references to discouragement.
Revised Timing of Initial Request for Information
The original Section 1071 rule required an initial request for data to be provided prior to notification of the credit decision. Because of how some loan applications are routinely handled (i.e., applications involving an intermediary), such timing was impractical. The May 2026 final rule revised the timing to provide that an initial request for applicant-provided data need occur prior to notifying the applicant of the final action taken on a covered application, or at another time reasonably designed to obtain a response.
Unresolved Industry Concerns
Throughout the entire Section 1071 rule promulgation process, financial institutions have shared strong concerns regarding privacy of customer information given the data required to be reported. The May 2026 final rule has not resolved these privacy concerns. CFPB has suggested it intends to publish aggregate data in the first year of receiving data and before it publishes any application-level data. CFPB also stated that it continues to reconsider customer privacy concerns and will continue to engage with stakeholders on the topic. WBA will continue to voice its concerns regarding the matter.
Efforts are also ongoing at the congressional level to advance a repeal of Section 1071. Those efforts will likely not be accomplished during this session given other pressing issues, such as trying to pass the SAFER Act, and available timelines.
Conclusion
As a result of CFPB’s most recent Section 1071 revisions, most banks in Wisconsin are no longer subject to the rule. However, for those banks that originate at least 1,000 covered credit transactions for small businesses in 2026 and 2027, mandatory compliance with the May 2026 final Section 1071 rule is January 1, 2028
June 2026
Volume 32, Number 1
Wisconsin Bankers Association
4721 South Biltmore Lane, P.O. Box 8880, Madison, Wisconsin, 53708-8880
A “covered credit transaction” is an extension of business credit for small businesses. “Business credit” is an extension of credit primarily for business or commercial purposes, excluding public utilities credit, securities credit, incidental credit, government credit, trade credit, a HMDA-reportable transaction, insurance premium financing, merchant cash advance, agricultural lending, and small dollar business credit. A “small business” is a business with gross annual revenue in the preceding fiscal year of $1 million or less.
For purposes of determining whether a bank is a covered financial institution as of January 1, 2028, a bank is permitted to use its originations of covered credit transactions for small businesses in 2025 and 2026, rather than 2026 and 2027.
The May 2026 final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-01/pdf/2026-08494.pdf
New Executive Order and Guidance Potentially Affecting ITIN Customers
Recently issued Executive Order 14406 titled, Restoring Integrity to America’s Financial System requires the banking agencies to issue guidance, advisories, and proposed rules which may ultimately have an impact on the establishment of deposit accounts and loans at financial institutions for customers with taxpayer identification numbers (ITINs). While further rule promulgation is required to change regulation and thereby potentially change formal policy and procedures, Wisconsin’s banks need to be aware of the newly released items in anticipation of further agency action. WBA is closely following the releases and will be commenting on forthcoming rules or requests of information (ROIs) to help protect against unintended consequences and duplicative regulatory requirements under existing Bank Secrecy Act (BSA) regulations. The following is a summary of recently issued items.
Executive Order 14406
Issued May 19, 2026, Executive Order (EO) 14406 sets forth agency actions meant to “safeguard [the U.S.] financial system from illicit use and promote safe and sound lending and other practices by financial institutions.” The EO requires the Department of the Treasury (Treasury) to issue a formal advisory to financial institutions regarding the risks associated with the exploitation of the U.S. financial system by non-work authorized populations and their employers. The order provides what the advisory is to cover. Treasury has since issued the advisory which is summarized below.
The EO also requires Treasury, in consultation with the Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and National Credit Union Administration (NCUA) (collectively, the agencies), to propose changes to BSA regulations to strengthen risk-based customer due diligence requirements. The changes are to ensure that financial institutions collect and verify sufficient customer identification information to reasonably identify the nominal and beneficial owners of accounts in order to access risks related to “illicit finance, sanctions evasion, or other unlawful activities.”
The agencies’ proposal is to also ensure that, where warranted, financial institutions obtain additional information necessary to resolve material compliance concerns, including whether account holders possess lawful immigration status and employment authorization in the U.S. when such information is “relevant to assessing risks associated with fraud, identity misrepresentation, sanctions evasion, or other illicit financial activity….” The actions are to be part of a risk-based customer due diligence program. Such action is to occur within ninety (90) days of the order.
Furthermore, within 180 days of the order, Treasury and the agencies must consider changes to BSA regulations to strengthen risk-based customer identification program requirements for financial institutions. Any change is to consider the “risks foreign consular identification cards pose” to the banking system.
The order also requires the Bureau of Consumer Financial Protection (CFPB) to clarity that deportation and loss of wages are factors that could adversely affect a non-work authorized borrower’s ability to repay a loan under Regulation Z’s “ability-to-repay” (ATR) provisions. CFPB has since issued its statement which is summarized below.
Finally, the EO also requires each agency to issue guidance regarding the management of potential credit risks posed by “the non-work authorized population.” Executive Order 14406 may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2026-05-22/pdf/2026-10400.pdf
Special Focus
Joint Advisory on Non-Work Authorized Populations and Their Employers and Risks to the Integrity of the U.S. Financial System
Treasury’s Financial Crimes Enforcement Network (FinCEN) released a joint advisory with FDIC, OCC, and NCUA in response to the EO. The advisory advises financial institutions to be vigilant against fraud schemes and other suspicious or potentially criminal activities involving the unlawful employment of illegal aliens and the risks to the integrity of the U.S. financial system. In particular, the agencies are concerned about access to financial services and unlawfully obtained wages could be leveraged to facilitate the financing of transnational criminal organizations.
The joint advisory provides methodologies and financial typologies associated with the hiring, concealment, and exploitation of unlawful alien workers, including the use of identity theft and payroll fraud schemes. The advisory also discusses enhanced due diligence for ITINs when used as documentation for valid employment authorization documentation. Several red flag indicators and key term for suspicious activity report (SAR) filing requests are also included. The FinCEN Advisory may be viewed at: https://www.fincen.gov/system/files/2026-06/FinCEN-Advisory-NonWork-Authorized-Populations.pdf
CFPB Statement on Ability to Repay and Immigration Status
In response to the EO, CFPB published a statement in the Federal Register to remind creditors of their obligation under the Truth in Lending Act, as implemented by Regulation Z, to access consumers’ ability to repay before offering mortgages and certain open-end credit products. The statement emphasizes that the requirements may obligate creditors to consider consumers’ immigration status, especially where removal from the U.S. may disrupt the consumer’s income.
Truth in Lending Act (TILA) and Regulation Z
TILA and Regulation Z require, when lending for dwelling-secured transactions, creditors to make a “reasonable and good faith determination at or before consummation that the consumer will have a reasonable ability to repay the loan according to its terms.” In doing so, a creditor need consider a consumer’s current or reasonably expected income or assets. When relying on current income, the creditor need consider the consumer’s “current employment status.” Credit card issuers have a similar requirement in that they must “consider [ ] the consumer’s ability to make the required minimum periodic payments.”
Regulation Z provides that in evaluating a consumer’s ability to repay based on expected employment income, creditors need only consider repayment ability based on what is known when the decision to extend credit is made or the credit issued, depending on the type of credit. Commentary to the mortgage-related provisions states that a change in a consumer’s circumstance after consummation that cannot be reasonably anticipated from the consumer’s application or records is not relevant to the creditor’s compliance with the ATR rule. For open-end credit, Regulation Z sets forth that credit card issuers are not required to make any particular predictions about the continued likelihood that a consumer will earn income in the absence of specific information that would reasonably allow them to make a determination about the nature of the income stream in the future.
However, if the information the creditor considers, when the decision to extend credit is made or the credit is issued, indicates that there will be a change in repayment ability after consummation, a creditor is to consider that information in order to have reasonably assessed a borrower’s ability to repay.
Equal Credit Opportunity Act (ECOA)
The CFPB statement also added that when creditors make lending decisions, creditors are permitted to take into account a wide range of information in order to make a reasonable assessment of a consumer’s ability to repay. Regulation B, which implements ECOA, states that “[a] creditor may take the applicant’s immigration status into account,” and that a creditor “may consider the applicant’s immigration status or status as a permanent resident of the United States, and any additional information that may be necessary to ascertain the creditor’s rights and remedies regarding repayment.” CFPB adds that such a consideration may be necessary because an “applicant’s immigration status and ties to the community (such as employment and continued residence in the area) could have a bearing in a creditor’s ability to obtain repayment.”
Special Focus
CFPB Discussion
The CFPB sets forth that a borrower’s income and indications of a change to that income are often critical to reasonably assessing a borrower’s ability to repay. To that end, CFPB stressed that when determining repayment ability, creditors relying on an individual’s income derived from U.S.-based employment are permitted (and may, under certain facts and circumstances, be obligated) to consider information that bears on the consumer’s underlying and continuing ability to earn income, when residency in the U.S. is a necessary component of such employment. CFPB adds that where a change “cannot be reasonably anticipated” from the application and relevant records, the change need not be considered. This is in line with the requirements as set forth under TILA and Regulation Z as outlined above.
CFPB believes an obligation arises if documentation in the consumer’s application or other records indicates that the consumer’s repayment ability will change on account of their immigration status. In such circumstances, CFPB stated a creditor is to consider that information, just as it would consider anything else in the application or records at or before consummation indicating that there will be a change in a consumer’s repayment ability after consummation.
Frustratingly, while placing emphasis on a consumer’s immigration status with regards to ATR, CFPB did not provide guidance regarding what creditors should consider as reliable immigration status. CFPB did acknowledge that there are a wide variety of lawful immigration statuses in the U.S. and stated that assessing how each status might bear on an application is varied, and it “cannot be assumed that consumers with different lawful statuses have identical abilities to repay.”
Considerations
Financial institutions should be aware of CFPB’s statement and keep in mind that there is currently no new area of law. Existing BSA requirements, TILA and Regulation Z ATR requirements, ECOA and Regulation B prohibited basis lending rules, and Fair Housing Act fair lending rules all remain intact. Institutions should ensure account opening procedures and underwriting standards remain consistent. A decision to file a SAR, or not to file, remains a case-by-case determination based upon the particular facts and circumstances of a given situation. Existing customer identification procedures and customer due diligence rules under current BSA-related regulations are the standard.
Importantly, while the statement is silent as to the Fair Housing Act, creditors must be mindful to continue to comply with fair lending laws which prohibit discrimination based on national origin and race. This is a careful distinction. While creditors are to make a reasonable determination of consumers’ ability to repay, which includes considering any changes to expected income for repayment, denying a loan application solely because a loan applicant is not a U.S. citizen or permanent resident is not a requirement under TILA, ECOA, or the Fair Housing Act.
The CFPB statement may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-08/pdf/2026-11447.pdf
Conclusion
The recent release of Executive Order 14406 titled, Restoring Integrity to America’s Financial System has resulted in the release of new guidance. Additionally, proposed rules to potentially revise customer identification programs, customer due diligence, and other BSA-related risk-based expectations are anticipated. Some of the anticipated proposals are likely to focus on the reliance of ITIN and foreign consular identification cards. Until rule promulgation is finalized, existing BSA regulations remain unchanged.
Consumer lending rules are also not directly altered by the recently released items. Lenders still have the requirement to consider and document consumers’ ability to repay certain credit obligations, may consider an applicant’s immigration status as applicable to the particular facts and circumstance of the loan application, and must continue to adhere to all EOCA and fair lending laws. Denying credit based upon national origin or race remain prohibited activities.
WBA will continue to closely monitor releases based upon the directive set forth in the EO and plans to comment on forthcoming rules or ROIs to help protect against unintended consequences and duplicative regulatory requirements.
Regulatory Spotlight
FFIEC Seeks Comment on Proposed Revisions to CAMELS Rating System.
The Federal Financial Institutions Examination Council (FFIEC) seeks comment on proposed revisions to the Uniform Financial Institutions Rating System, commonly referred to as the CAMELS rating system. The proposal would strengthen the link between CAMELS ratings and a financial institution’s safety and soundness by focusing component and composite ratings on factors that materially affect an institution’s financial condition and risk profile, and by improving the transparency of CAMELS ratings. Comments are due 08/17/2026. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2026-05-19/pdf/2026-09944.pdf. Federal Register, Vol. 91, No. 96, 05/19/2026, 29128-29139.
FFIEC Seeks Comment on Call Report Form FFIEC 101.
FFIEC, of which the Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) are members, seeks comment regarding the Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework, FFIEC 101 information collection. Certain institutions are required to submit the form as described in the notice. Comments are due 08/04/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-05/pdf/2026-11344.pdf. Federal Register, Vol. 91, No. 108, 06/05/2026, 34347-34349.
CFPB Issues Statement on ATR and Immigration Status.
The Bureau of Consumer Financial Protection (CFPB) issued a statement to remind creditors of obligations under the Truth in Lending Act (TILA) as implemented by Regulation Z, and consistent with Executive Order 14406, Restoring Integrity to America’s Financial System. As discussed in the statement, continued access to employment can be a key component of assessing a borrower’s income under Regulation Z ability-to-repay requirements. A borrower’s income and indications of a change to that income are often critical to reasonably assessing a borrower’s ability to repay. CFPB issued the statement to remind creditors that, when determining repayment ability, creditors relying on an individual’s income derived from U.S.-based employment are permitted, and may, under certain facts and circumstances, be obligated, to consider information that bears on the consumer’s underlying and continuing ability to earn income, when residency in the United States is a necessary component of such employment. Where a change “cannot be reasonably anticipated” from the application and relevant records, the change need not be considered. CFPB also stated that as guidance, the statement does not have the force or effect of law and no legally binding effect, including on persons or entities outside the Federal government. The statement is applicable 06/08/2026. The statement may be viewed at: https://www.govinfo. gov/content/pkg/FR-2026-06-08/pdf/2026-11447.pdf Federal Register, Vol. 91, No. 109, 06/08/2026, 34607-34609.
FRB Proposes to Amend Regulations A and D Regarding Special-Purpose Payment Accounts.
The Board of Governors of the Federal Reserve System (FRB) issued a proposed rule to amend Regulation A (Extensions of Credit by Federal Reserve Banks) to specify that a holder of a proposed special-purpose payment account (a Payment Account) would not be eligible for access to discount window credit made available by the Federal Reserve Banks (Reserve Banks). The proposal would change neither the existing programs under which the Reserve Banks generally provide discount window credit (primary credit, secondary credit, and seasonal credit) nor the process for establishing the primary credit, secondary credit, and seasonal credit rates. Comments are due 07/27/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-26/pdf/2026-10376.pdf Federal Register, Vol. 91, No. 100, 05/26/2026, 30498-30503.
FRB issued a proposed rule to amend Regulation D (Reserve Requirements of Depository Institutions) to differentiate between master accounts and a proposed new category of special-purpose payment accounts (Payment Accounts). The proposed amendments would exclude Payment Accounts from Regulation D’s provisions directing Federal Reserve Banks (Reserve Banks) to pay interest on balances maintained at a Reserve Bank. As a result, the Reserve Banks would not pay interest on balances maintained in Payment Accounts. The proposal would not affect reserve requirement ratios, which would remain zero. Comments are due 07/27/2026. The proposed rule may be viewed at: https://www.govinfo. gov/content/pkg/FR-2026-05-26/pdf/2026-10377.pdf Federal Register, Vol. 91, No. 100, 05/26/2026, 30503-30511.
Regulatory Spotlight
FRB Seeks Comment on Proposed Revisions to PRS Policy.
FRB seeks comment regarding proposed revisions to the Federal Reserve Policy on Payment System Risk (PSR Policy), including the proposed addition of a new Part IV, to accommodate the provision by Reserve Banks of special-purpose accounts that would clear and settle certain payment activity (Payment Accounts). FRB also proposed updates to its guidelines for Federal Reserve Banks (Reserve Banks) to utilize in evaluating requests for access to Reserve Bank account and services (Account Access Guidelines) to accommodate requests for access to Payment Accounts. Finally, FRB has encouraged Reserve Banks to pause decisions on requests for Reserve Bank accounts and services from institutions that are Tier 3 under the Account Access Guidelines until FRB has completed its policy development process on the Payment Account proposal. Comments are due 07/27/2026. The notice may be viewed at: https://www.govinfo. gov/content/pkg/FR-2026-05-26/pdf/2026-10375.pdf Federal Register, Vol. 91, No. 100, 05/26/2026, 30627-30653.
FRB Announces Final Approval of Information Collection.
FRB announced final approval of an information collection titled, Capital Assessments and Stress Testing Reports, FY Y-14. The FR Y-14 reports collect stress test and capital plan data from the largest holding companies, which are those with $100 billion or more in total consolidated assets. The data collected provide FRB with information needed to help ensure that large holding companies have strong, firm-wide risk measurement and management processes supporting their internal assessments of capital adequacy and that their capital resources are sufficient given their business focus, activities, and resulting risk exposures. Information gathered is also used in the supervision and regulation of the financial institutions. The revisions to the information collection are effective 12/31/2026, unless otherwise noted in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-20/pdf/2026-10099.pdf. Federal Register, Vol. 91, No. 97, 05/20/2026, 29485-29497.
FDIC Issues Correction to Brokered Deposit Regulations.
The Federal Deposit Insurance Corporation (FDIC) issued a correction to a final rule published in the Federal Register 01/22/2021. The action corrects technical errors in FDIC’s regulations concerning brokered deposits, 12 CFR parts 303 and 337, which were amended by the January 2021 rule. The 2021 rule inadvertently deleted text accompanying two footnotes (which, additionally, were previously misnumbered) in 12 CFR 337.6(a)(3)(i). The 2021 rule also failed to update a cross-reference to 12 CFR 337.6(b)(2)(ii), a section which was relocated to 12 CFR 337.7(c)(2). Finally, the 2021 rule inadvertently used the term “assets under management” in the regulatory text for Part 303 when the rule’s preamble, as well as two related provisions of FDIC’s regulations, used the correct terminology, “assets under administration,” to describe the same concept. Through the final rule FDIC corrected the inadvertent errors, as well as made several minor grammatical changes. The correction is effective 06/03/2026. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-03/pdf/2026-11044.pdf Federal Register, Vol. 91, No. 106, 06/03/2026, 33069-33070.
FDIC Proposes BSA and Sanctions Compliance Standards for Supervised Permitted
Payment Stablecoin Issuers.
FDIC issued a proposed rule pursuant to the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) that would implement appropriate Bank Secrecy Act (BSA) and sanctions compliance standards applicable to FDIC-supervised permitted payment stablecoin issuers. Comments are due 08/04/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-05/pdf/2026-11342.pdf Federal Register, Vol. 91, No. 108, 06/05/2026, 34171-34178.
FDIC Seeks Comment on Information Collections.
FDIC seeks comment regarding an information collection titled, Regulatory Capital Rules. The collection comprises the recordkeeping, reporting, and disclosure requirements associated with minimum capital requirements and overall capital adequacy standards for insured state nonmember banks, state savings associations, and certain subsidiaries of those entities. The data is used by FDIC to evaluate capital before approving various applications by insured depository institutions, to evaluate capital as an essential component in determining safety and soundness, and to determine whether an institution is subject to prompt corrective action provisions. Comments are due 07/20/2026. The notice may
Regulatory Spotlight
be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-20/pdf/2026-10067.pdf Federal Register, Vol. 91, No. 97, 05/20/2026, 29483-29485.
FDIC seeks comment regarding three information collections titled, Certified Statement for Quarterly Deposit Insurance Assessment; Foreign Banking and Investment by Insured State Nonmember Banks; and Interagency Guidance on Sound Incentive Compensation Policies. FDIC utilizes the information collected as described in the notice. Comments are due 08/03/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-04/pdf/2026-11177.pdf Federal Register, Vol. 91, No. 107, 06/04/2026, 33724-33726.
OCC Issues Final Rule on Real Estate Lending Escrow Accounts.
The Office of the Comptroller of the Currency (OCC) issued a final rule to codify longstanding and recognized powers of national banks and Federal savings associations to establish or maintain real estate lending escrow accounts and to exercise flexibility in making business judgments as to the terms and conditions of such accounts, including whether and to what extent to offer any compensation or to assess any fees related thereto. The final rule is effective 06/18/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-19/pdf/2026-10036.pdf Federal Register, Vol. 91, No. 96, 05/19/2026, 29340-29347.
OCC Issues Preemption Determination of State Interest-on-Escrow Laws.
OCC issued a preemption determination concluding that Federal law preempts State laws that restrict OCC-regulated banks’ flexibility to decide whether and to what extent to pay interest or other compensation on funds placed in real estate escrow accounts or assess fees in connection with such accounts. The final rule is effective 06/18/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-19/pdf/2026-10037.pdf Federal Register, Vol. 91, No. 96, 05/19/2026, 29350-29358.
OCC Seeks Comments on Information Collections.
OCC seeks comment regarding an information collection titled, Securities Offering Disclosure Rules. Twelve CFR part 16 governs the offer and sale of securities issued by national banks and Federal savings associations. The requirements in part 16 enable OCC to perform its responsibility to ensure that the investing public has information about the condition of the institution, the reasons for raising new capital, and the terms of the offering. Part 16 requires that securities offering disclosures of national banks and Federal savings associations be generally consistent with similar Securities Exchange Commission disclosure requirements. Comments are due 07/13/2026. The notice may be viewed at: https://www.govinfo. gov/content/pkg/FR-2026-05-14/pdf/2026-09641.pdf Federal Register, Vol. 91, No. 93, 05/14/2026, 27485-27487.
OCC seeks comment regarding an information collection titled, Margin and Capital Requirements for Covered Swap Entities. The information collection stems from requirements set forth under Title VI of the Dodd-Frank Act as incorporated into OCC’s rules from swap entities as discussed in the notice. Comments are due 06/22/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-20/pdf/2026-10048.pdf Federal Register, Vol. 91, No. 97, 05/20/2026, 29520-29522.
OCC seeks comment regarding an information collection titled, Securities Exchange Act Disclosure Rules. The Securities and Exchange Commission (SEC) is required by statute to collect certain information and documents from any firm that is required to register its stock with SEC. Federal law requires OCC to apply similar regulations to any national bank or Federal savings association similarly required to be registered with SEC. Twelve CFR part 11 ensures that a national bank or Federal savings association whose securities are subject to registration provides adequate information about its operations to current and potential shareholders and the public. OCC reviews the information to ensure that it complies with Federal law and makes public all information required to be filed under the rule. Comments are due 07/01/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-01/pdf/2026-10825.pdf Federal Register, Vol. 91, No. 104, 06/01/2026, 32510-32511.
Banking-Related Executive Orders Published in Federal Register.
Executive Order 14405, Integrating Financial Technology Innovation into Regulatory Frameworks was published in the Federal Register. The order sets forth how agencies are to consider what regulations and practices could be updated to
Regulatory Spotlight
facilitate innovation, and competition to financial products and services for fintech firms, including potential access to Federal Reserve Services. The executive order may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-22/ pdf/2026-10399.pdf Federal Register, Vol. 91, No. 99, 05/22/2026, 30475-30477.
Executive Order 14406, Restoring Integrity to America’s Financial System was published in the Federal Register. The order sets forth how agencies are to consider safeguarding the financial system against fraud and abuse, and to address structural credit risks. The executive order may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-22/ pdf/2026-10400.pdf Federal Register, Vol. 91, No. 99, 05/22/2026, 30479-30481.
HUD Seeks Comment on Indian Housing Block Grant Competitive Program Evaluation.
The Department of Housing and Urban Development (HUD) seeks comment regarding an information collection titled, Evaluation of the Indian Housing Block Grant (IHBG) Competitive Program. The IHBG program funds eligible Indian tribes and tribally-designated housing entities to develop, maintain, and operate affordable housing in safe and healthy environments on Indian reservations and other Indian areas, and for other affordable housing activities. Grant funds must primarily benefit low-income Indian families. The information collected is used to evaluate the program. Comments are due 07/27/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-27/pdf/2026-10464. pdf. Federal Register, Vol. 91, No. 101, 05/27/2026, 31474-31475.
HUD Seeks Information on Minimum Property Requirements.
HUD seeks comment regarding minimum property requirements as it applies to Federal Housing Administration’s (FHA) single-family mortgage insurance programs. The request for information aims to gather market feedback to inform subsequent policy modernization that supports sustainable homeownership opportunities. Comments are due 06/29/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-29/pdf/2026-10766.pdf. Federal Register, Vol. 91, No. 103, 05/29/2026, 32078-32079.
FEMA Adjusts FY 2027 Arrangement.
The Federal Emergency Management Agency (FEMA) announced an adjustment to the Fiscal Year (FY) 2027 Financial Assistance/Subsidy Arrangement (Arrangement) for private property insurers interested in participating in the National Flood Insurance Program’s (NFIP) Write Your Own Program. The FY 2027 Arrangement’s effective date was 10/01/2026. To be effective on that date, the FY 2027 Arrangement was required to be published 04/01/2026. Because of the lapse in government appropriations, FEMA was unable to publish on April 1. Therefore, FEMA changed the effective date of the FY 2027 Arrangement to be 12/01/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-202605-19/pdf/2026-09957.pdf Federal Register, Vol. 91, No. 96, 05/19/2026, 29153.
FEMA Issues Final Flood Hazard Determinations.
FEMA made flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports final for communities in Indiana. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having an effect in order to qualify or remain qualified for participation in the FEMA’s National Flood Insurance Program (NFIP). The date of 07/07/2026, has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-18/pdf/2026-09851.pdf Federal Register, Vol. 91, No. 95, 05/18/2026, 28602-28603.
FEMA made flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports final for communities in Michigan and Minnesota. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having an effect in order to qualify or remain qualified for participation in the FEMA’s National Flood Insurance Program (NFIP). The date of 06/10/2026, has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for
Regulatory Spotlight
each community. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-18/pdf/2026-09848. pdf Federal Register, Vol. 91, No. 95, 05/18/2026, 28603-28606.
FEMA Issues Notice of Changes in Flood Hazard Determinations.
FEMA issued a notice which lists communities in Minnesota and Wisconsin, where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports is appropriate because of new scientific or technical data. The FIRM, and where applicable, portions of the FIS report, have been revised to reflect the flood hazard determinations through issuance of a Letter of Map Revision (LOMR), in accordance with federal regulations. The flood hazard determinations will be finalized on the dates listed in the table in the notice and revise the FIRM panels and FIS report in effect prior to the determination for the listed communities. From the date of the second publication of notification of the changes in a newspaper of local circulation, any person has 90 days in which to request through the community that the Deputy Associate Administrator for Insurance and Mitigation reconsider the changes. The flood hazard determination information may be changed during the 90-day period. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2026-05-18/pdf/2026-09850.pdf Federal Register, Vol. 91, No. 95, 05/18/2026, 2860728610.
Treasury Seeks Comment on Bank Enterprise Award Program Application.
The Department of the Treasury (Treasury) seeks comment regarding an information collection titled, Bank Enterprise Award Program Application. The purpose of the program is to provide an incentive to Federal Deposit Insurance Corporation-insured (FDIC-insured) depository institutions to increase their lending, investment, and financial services to residents and businesses located in economically distressed communities, and provide assistance to Community Development Financial Institutions (CDFIs) through grants, stock purchases, loans, deposits, and other forms of financial and technical assistance. The CDFI Fund will make awards through the program to FDIC-insured depository institutions, based upon such institutions’ demonstrated increase of qualified activities, as reported in the application. Comments are due 06/25/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-26/pdf/2026-10416. pdf Federal Register, Vol. 91, No. 100, 05/26/2026, 30802.
IRS Issues Final Rule on Returns Relating to Sales or Exchanges of Certain Partnership Interests.
The Internal Revenue Service (IRS) issued a final rule to modify information reporting obligations with respect to sales or exchanges of certain interests in partnerships owning inventory or unrealized receivables. The final rule is effective 05/20/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-20/pdf/2026-10116. pdf Federal Register, Vol. 91, No. 97, 05/20/2026, 29362-29365.
IRS Proposes Update to Estate Tax Closing Letter User Fee.
IRS issued a proposed rule to increase the amount of the user fee imposed on authorized persons requesting the issuance of an estate tax closing letter. The Independent Offices Appropriations Act authorizes charging user fees in appropriate circumstances as explained in the proposal. Comments are due 07/02/2026. The proposed rule may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2026-06-02/pdf/2026-10963.pdf. Federal Register, Vol. 91, No. 105, 06/02/2026, 32909-32911.
IRS Seeks Comments on 1098 Mortgage Interest Statement.
IRS seeks comment regarding an information collection titled, Reporting Requirements for Recipients of Points Paid on Residential Mortgages and Mortgage Interest Statement, Form 1098. Internal Revenue Code (IRC) section 6050H provides that an information return must be made by any person who is engaged in a trade or business and who, during that trade or business, receives from any individual $600 or more of interest on any mortgage in a calendar year. A person required to make an information return under IRC section 6050H also must furnish a statement to the payor of record on or before January 31 of the year following the calendar year in which the interest was received. Form 1098 is
Regulatory Spotlight
used to report mortgage interest (including points) received during the year. Comments are due 07/13/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-12/pdf/2026-09396.pdf Federal Register, Vol. 91, No. 91, 05/12/2026, 26247.
FSA Seeks Comment on Online Farm Loan Program Application.
The Farm Service Agency (FSA) seeks comment regarding an information collection titled, Farm Loan Programs, Online Loan Application. The information collected is used in eligibility and feasibility determinations for loan making actions. Future releases of the online application will provide additional functionality and components for Direct Loan Making Program applications. Comments are due 07/20/2026. The notice may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2026-05-19/pdf/2026-10005.pdf Federal Register, Vol. 91, No. 96, 05/19/2026, 29109-29110.
FCIC Seeks Comment on Risk Protection Insurance Information Collection.
The Federal Crop Insurance Corporation (FCIC) seeks comment regarding an information collection titled, Area Risk Protection Insurance (ARPI). The information collection requirements are necessary to administer ARPI and affected crop provisions to determine insurance coverage, premiums, subsidies, payments, and indemnities. Comments are due 07/28/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-29/pdf/2026-10741.pdf. Federal Register, Vol. 91, No. 103, 05/29/2026, 31996-31997.
CCC Provides Assistance for Specialty Crop Farmers.
The Commodity Credit Corporation (CCC) issued a final rule to provide assistance to producers of eligible specialty crops through the Assistance for Specialty Crop Farmers (ASCF) Program. The one-time bridge payments will help address elevated input costs incurred by producers and market disruptions stemming from foreign competitors engaging in unfair trade practices that impede specialty crop exports. The final rule is effective 06/01/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-01/pdf/2026-10930.pdf Federal Register, Vol. 91, No. 104, 06/01/2026, 32307-32314.
CCC Revises Payment Limitation and Payment Eligibility Rules.
CCC issued a final rule to revise the payment limitation and payment eligibility regulations to conform with provisions of the One Big Beautiful Bill Act (OBBBA). In particular, the final rule amends 7 CFR part 1400 to implement payment limitation changes made by OBBBA regarding equitable treatment of certain entities and an exception to the average adjusted gross income limitation for certain programs. In addition to the payment limitation changes, OBBBA increased the payment limitations for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs and mandated annual increases to those limits based on the Consumer Price Index for All Urban Consumers. The changes were implemented through a final rule published 01/12/2026. The final rule also makes discretionary changes to the payment limitation and payment eligibility regulations to improve program administration and clarify and update existing provisions. The final rule is effective on 06/02/2026. The final rule may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2026-06-02/pdf/2026-11002.pdf Federal Register, Vol. 91, No. 105, 06/02/2026, 32880-32887.
Agencies Rescind Policies on Denials in Settlements of Enforcement Actions.
The Commodity Futures Trading Commission (CFTC) issued a final rule to rescind a policy contained in an appendix to its regulations concerning acceptance of settlements in administrative and civil proceedings. The policy is commonly understood to limit a respondent’s or defendant’s ability to deny allegations following settlement. The final rule is effective 06/08/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-08/pdf/202611466.pdf Federal Register, Vol. 91, No. 109, 06/08/2026, 34570-34573.
The Securities and Exchange Commission (SEC) issued a final rule to rescind a rule of informal procedure that concerns settlements in judicial or administrative proceedings. Since 1972, SEC maintained a policy, codified in Rule 202.5(e) of its rules of informal procedure, 17 CFR 202.5(e), that when it chooses to settle an enforcement action in which a sanction is imposed, it will not settle unless the defendant or respondent also agrees not to publicly deny the allegations in the complaint or administrative order. For the reasons explained in the final rule, SEC has rescinded the policy and repealed
Regulatory Spotlight
Rule 202.5(e). The final rule is effective 05/21/2026. The final rule may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2026-05-21/pdf/2026-10132.pdf Federal Register, Vol. 91, No. 98, 05/21/2026, 29892-29896.
CFTC Adopts Revised Seal Image.
The Commodity Futures Trading Commission (CFTC) issued a final rule to adopt a new seal. The final rule provides a description of the new seal and its image. The final rule is effective 05/11/2026. The final rule may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2026-05-11/pdf/2026-09327.pdf Federal Register, Vol. 91, No. 90, 05/11/2026, 25489-25492.
CFTC Issues Policy Statement Concerning Listing of Perpetual Contracts.
CFTC issued a policy statement which describes its views concerning the listing of perpetual contracts. CFTC issued an order permitting the listing of a perpetual contract that references the spot price of bitcoin by a designated contract market (DCM) as a futures contract. Given the unique characteristics of perpetual contracts, which tend to vary based on the underlying asset they reference, CFTC is of the view that the case-by-case review process detailed in CFTC Regulation 40.3 is appropriate for the listing of perpetual contracts that reference asset classes that are not contemplated in the order. The policy statement is adopted as of 05/29/2026. The policy statement may be viewed at: https://www. govinfo.gov/content/pkg/FR-2026-06-03/pdf/2026-11020.pdf. Federal Register, Vol. 91, No. 106, 06/03/2026, 3316033162.
CFTC Seeks Comment on DCO Registration.
CFTC seeks comment regarding an information collection titled, Exemption from Derivatives Clearing Organization (DCO) Registration. The information collection is associated with CFTC regulations codifying the policies and procedures that CFTC follows with respect to granting exemptions from registration as a DCO for the clearing of proprietary swaps for U.S. persons and futures commission merchants. The information collected is necessary for CFTC to determine whether a clearing organization qualifies for exemption from DCO registration, to evaluate the continued eligibility of the exempt DCO for exemption from registration, to review compliance by the exempt DCO with any conditions of such exemption, or to conduct its oversight of U.S. persons and the swaps that are cleared by U.S. persons through the exempt DCO. Comments are due 08/10/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-09/ pdf/2026-11518.pdf. Federal Register, Vol. 91, No. 110, 06/09/2026, 34812-34813.
SEC Proposes Simplification of Filer Status for Reporting Companies.
SEC issued a proposed rule to streamline filer statuses for Securities Exchange Act reporting companies into two primary categories: large-accelerated filers and non-accelerated filers. SEC further proposed to raise the threshold and seasoning requirements for large-accelerated filer status and extend certain existing accommodations and scaled disclosures, including those for smaller reporting companies and emerging growth companies, to all non-accelerated filers, while continuing to require compliance with non-scaled disclosure from large-accelerated filers. SEC also proposed to extend the deadlines to file periodic reports for the smallest non-accelerated filers, as measured by total assets. Finally, SEC also proposed to update the rules that define which issuers are considered small entities for purposes of the Regulatory Flexibility Act. Comments are due 07/20/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/ pkg/FR-2026-05-21/pdf/2026-10222.pdf. Federal Register, Vol. 91, No. 98, 05/21/2026, 30086-30190.
SEC Proposes Registered Offering Reform.
SEC issued a proposed rule to amend Form S-3 and the ability to conduct shelf offerings available to significantly more issuers, extend certain benefits currently reserved for “well-known seasoned issuers” to a broader set of issuers, and modernize Form S-1 by expanding the ability to incorporate information by reference into that form. The proposed amendments also would make conforming changes to the registration, communication, and offering process for certain business development companies and registered closed-end investment companies that register securities on Form N-2. SEC also proposed to amend the communication rules to permit broad-based advertising for certain insurance products. In addition, SEC proposed other amendments that are intended to modernize certain rules. Finally, to mitigate the costs and complexity of conducting a registered offering, the proposed amendments would preempt State securities law
Regulatory Spotlight
registration and qualification requirements for all registered offerings. Comments are due 07/27/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-26/pdf/2026-10373.pdf Federal Register, Vol. 91, No. 100, 05/26/2026, 31022-31281.
SEC Proposes to Rescind Climate-Related Disclosure Rules.
SEC issued a proposed rule to rescind amendments to its rules under the Securities Act and Securities Exchange Act that require registrants to provide certain climate-related information in registration statements and annual reports. Comments are due 08/03/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202606-03/pdf/2026-11091.pdf Federal Register, Vol. 91, No. 106, 06/03/2026, 33296-33345.
FCC Seeks Comment on Enhancing Know-Your-Customer Requirements.
The Federal Communications Commission (FCC) seeks comment regarding proposed actions to provide additional clarity to fill the gap between its current Know-Your-Customer (KYC) requirement and the types of rigorous KYC steps necessary to protect consumers. Specifically, FCC seeks comment on customer identification requirements for new and renewing customers, requirements for verifying, retaining, and re-verifying customer information, requiring more information from certain customers such as high-volume customers, and on how these efforts can complement call branding and caller name requirements FCC may adopt. FCC also proposed to assess penalties for violations of the KYC requirement on a per call basis. FCC aims to make it more difficult for scammers to originate illegal calls and easier to enforce against them when they do get onto the network. Comments are due 06/25/2026. Reply comments are due 07/27/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-05-26/pdf/2026-10407.pdf Federal Register, Vol. 91, No. 100, 05/26/2026, 30596-30603.
VA Seeks Comment on Information Collections.
The Department of Veterans Affairs (VA) seeks comment regarding an information collection titled, Status of Loan Account-Foreclosure or Other Liquidation. The information collection is used in connection with a holder’s request for VA to repurchase a loan. The holder of a delinquent vendee account is legally entitled to repurchase of the loan by VA when the loan has been continuously in default for three months and the amount of the delinquency equals or exceeds the sum of two monthly installments. Comments are due 06/22/2026. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2026-05-21/pdf/2026-10130.pdf. Federal Register, Vol. 91, No. 98, 05/21/2026, 30027.
VA seeks comment regarding an information collection titled, Government-Sponsored Enterprise (GSE) Industry Appraisal Report. The information collection is used by VA to support property valuation determinations for VA-guaranteed loans. The collection seeks reapproval of VA’s requirements that appraisers utilize certain industry-standard reports when completing an appraisal. The collection provides accurate and complete appraisal of prospective VA-guaranteed properties, ensuring mortgages are acceptable for VA guarantee and protecting the interest of VA, taxpayers, and the Veterans Housing Benefit Program Fund. Comments are due 06/22/2026. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2026-05-22/pdf/2026-10236.pdf Federal Register, Vol. 91, No. 99, 05/22/2026, 30397.
VA seeks comment regarding an information collection titled, Statement of Purchaser or Owner Assuming Seller’s Loan. The collection is used to help determine eligibility for release of liability and substitution of entitlement when a VAguaranteed loan is assumed. Comments are due 07/06/2026. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2026-06-04/pdf/2026-11164.pdf. Federal Register, Vol. 91, No. 107, 06/04/2026, 33897-33898.
NCUA Issues Interim Final Rule on Federal Credit Unions’ Power to Charge Non-Interest Charges and Fees.
The National Credit Union Administration (NCUA) issued an interim final rule to clarify federal credit unions’ (FCUs) power to charge non-interest charges and fees includes the power to assess, collect, impose, levy, receive, reserve, take, or otherwise obtain non-interest charges and fees, including interchange fees from credit and debit card operations. Further, the interim final rule explains that FCUs may charge non-interest charges or fees, even when such charges and fees are set by or in consultation with third parties. The interim final rule is effective 06/30/2026. Comments are due 07/09/2026. The interim final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-06-09/pdf/202611559.pdf Federal Register, Vol. 91, No. 110, 06/09/2026, 34725-34733.
Regulatory Spotlight
NCUA Seeks Comment on Proposal to Implement Portions of GENIUS Act.
NCUA seeks comment regarding a proposed rule to implement portions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The GENIUS Act charges NCUA with licensing, regulating, and supervising payment stablecoin issuers that are subsidiaries of federally-insured credit unions (FICU subsidiaries). In February 2026, NCUA issued proposed regulations to govern investments in and licensing of permitted payment stablecoin issuers subject to NCUA’s jurisdiction. This proposal supplements the previous proposal and would govern the issuance of payment stablecoins and certain related activities by entities subject to NCUA’s jurisdiction. The proposal would also address share insurance coverage, tokenized shares, and other conforming and clarifying amendments. Comments are due 07/17/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202605-18/pdf/2026-09915.pdf Federal Register, Vol. 91, No. 95, 05/18/2026, 28956-29035.
Compliance Notes
The U.S. District Court for the Northern District of Illinois issued a decision that the Illinois Interchange Fee Prohibition Act’s interchange fee limitation is preempted as applied to national banks, federal savings associations, certain out-of-state-banks, and payment card networks. The case now returns to the Sevenths Circuit for review of the district court’s revised preemption analysis and OCC”s interim rules regarding preemption. The decision may be viewed at: https://www.consumerfinancemonitor.com/wp-content/uploads/sites/14/2026/06/2484000-2484116-https-ecf-ilnduscourts-gov-doc1-067134711858.pdf
New Executive Order, Promoting Advanced Artificial Intelligence Innovation and Security, includes directives for agencies to take steps to counter potential cybersecurity threats posed by AI. Included in the directives is for community banks to receive access to cybersecurity tools and services. The order may be viewed at: https://www.whitehouse.gov/ presidential-actions/2026/06/promoting-advanced-artificial-intelligence-innovation-and-security/
FRB, FDIC, and OCC announced updated interagency documents that reflect the removal of references to reputation risk. The agencies took the action to compliment earlier actions that ended the use of reputation risks in supervision. The updates help ensure supervisory decisions are based on material financial risks, as well as increase clarity and facilitate greater precision in supervisory decision making. The agencies will continue to review supervisory materials and may update additional documents as appropriate. The announcement may be viewed at: https://www.fdic.gov/news/pressreleases/2026/agencies-remove-additional-references-reputation-risk
FDIC’s Office of the Ombudsman published a report detailing its role and services available to the banking industry. The report highlights work done in 2025. The report may be viewed at: https://www.fdic.gov/news/financial-institutionletters/2026/fdics-office-ombudsman-publishes-2025-annual-report
SSA announced its plan to complete full transition to electronic payments for all beneficiaries this year. The need for the switch is to improve efficiency, reduce costs, and enhance security in federal payments. SSA reported paper checks are sixteen (16) times more likely to be lost, stolen, altered, or returned undeliverable than electronic payments. Steps for how customers can make the switch to electronic payments may be viewed at: https://www.ssa.gov/blog/en/ posts/2026-06-02.html
OCC issued a bulletin to clarify the standards for its decisions on filings, as governed by 12 CFR 5.13. OCC has authority to approve, conditionally approve, or deny a filing. OCC may also return a filing as materially deficient where it lacks sufficient information to make a determination under the applicable statutory or regulatory criteria. OCC also stated it is committed to acting on all filings in a timely manner appropriate to the nature and complexity of the filing. The entire filing decision process may be viewed at: https://occ.gov/news-issuances/bulletins/2026/bulletin-2026-27.html
July
15 Branch Manager Boot Camp: Session I II
Four-part series, virtual half days – $900/attendee
