Banking and Finance Law Daily Wrap Up, WORTH NOTING—Other regulatory, legislative, litigation, and industry developments, (Jan 2, 2026)

By WK Editorial Staff

A weekly roundup of other items of interest to the banking and finance law community.

BANK SECRECY ACT—The Financial Crimes Enforcement Network (FinCEN) issued a final rule extending the effective date of the rule establishing Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers (IA AML Rule). The final rule delays the obligations of covered investment advisers under the IA AML Rule from Jan. 1, 2026, to Jan. 1, 2028.

COMMUNITY DEVELOPMENT—The Federal Reserve Board and Federal Deposit Insurance Corporation have released the 2026 asset-size thresholds to define “small bank” and “intermediate small bank” under the Community Reinvestment Act (CRA) based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Effective from the latter of Jan. 1, 2026, or the date of publication in the Federal Register, through Dec. 31, 2026, banks with assets under $1.649 billion will be considered a small bank while a small bank with assets of at least $412 million and less than $1.649 billion will be considered an intermediate small bank.

COMMUNITY DEVELOPMENT—The Office of the Comptroller of the Currency has increased the asset thresholds that determine how banks are classified under the Community Reinvestment Act, citing a 2.51 percent increase in the Consumer Price Index (OCC Bulletin 2025-48). Effective Jan. 1, 2026, banks with assets under $1.649 billion will be considered small institutions, up from $1.609 billion in 2025. Institutions with assets between $412 million and $1.649 billion will qualify as intermediate small banks. The OCC is required to adjust the thresholds annually to reflect inflation. The changes apply to all national banks and federal savings associations subject to CRA evaluations.

CONSUMER FINANCIAL PROTECTION BUREAU—The Consumer Financial Protection Bureau released its annual Fair Lending Report reflecting the priorities and work of the CFPB and sister agencies for calendar year 2024. The report notes that the CFPB’s fair lending work has shifted significantly in accordance with the priorities of the current administration and several executive orders. “In 2025 and beyond, the CFPB will be working only on areas clearly within its statutory authority, prioritizing pressing threats to consumers, focusing on actual fraud against consumers, where there are identifiable victims with material and measurable consumer damages, and redressing tangible harm by getting money back directly to consumers,” the report said.

CONSUMER FINANCIAL PROTECTION BUREAU—The Consumer Financial Protection Bureau has, as required under Section 342(e) of the Dodd-Frank Act, submitted to Congress an annual report from its Office of Minority and Women Inclusion (OMWI). The report covers the period of Oct. 1, 2023, through Sept. 30, 2024. Acting Director Vought expressed concerns regarding certain aspects of this reporting in light of the Supreme Court decision in Students for Fair Admissions, Inc. v. President & Fellow of Harvard College, 143 S. Ct. 2141 (2023). In light of these concerns, the CFPB will continue to fulfill its responsibilities under applicable law, including Section 342 of the Dodd-Frank Act, by ensuring vendors have a fair opportunity to compete for CFPB business opportunities and identifying the best contractors to support the CFPB’s mission and operations. The CFPB stated it will also continue to recruit, hire, and retain the highest quality workforce based on merit, consistent with Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity.

CONSUMER FINANCIAL PROTECTION BUREAU—The Consumer Financial Protection Bureau has released its annual Financial Literacy Report. The Bureau reported $755.1 million in FY 2024 spending and a workforce of 1,758 employees. Funding remains primarily sourced from Federal Reserve Board transfers, totaling $729.4 million for the fiscal year. In 2024, the Bureau’s resource, Ask CFPB, served over 12.6 million visitors, offering answers to pressing financial questions. Between October 2023 and September 2024, the CFPB adopted rules on credit reporting disclosures, personal financial data rights, and automated valuation models. However, the Bureau is moving in a deregulatory direction—with numerous guidance documents and advisory opinions issued under prior leadership being rescinded. In addition, enforcement activity now reflects the dismissal of many legacy cases, and the termination of consent orders. 2.6 million consumer complaint submissions were logged during the period, and these were dominated by credit reporting and debt collection issues. No fair lending violations were cited in 14 supervisory reviews, while two referrals were made to the Department of Justice for discriminatory lending practices. Within the CFPB, diversity initiatives have been scaled back following executive directives.

CONSUMER FINANCIAL PROTECTION BUREAU—The Consumer Financial Protection Bureau has published its latest list of institutions subject to CFPB supervisory authority. The list is based on Sept. 30, 2025, Call Report data.

CONSUMER FINANCIAL PROTECTION BUREAU—The Consumer Financial Protection Bureau has released its semi-annual report to Congress for Fall 2024, outlining activity from April through September 2024 and providing additional disclosures required under several federal lending laws. In a message accompanying the report, Acting Director Russell Vought criticized actions taken under former Director Rohit Chopra, alleging the agency had exceeded its authority through “burdensome” regulations and enforcement efforts, citing examples of what Vought described as improper targeting of certain industries. According to the latest report, the Bureau has since shifted its focus toward fraud affecting servicemembers, veterans, and other consumers, and has withdrawn guidance, consent orders, and cases viewed as overreach.

CONSUMER FINANCIAL PROTECTION BUREAU—The Consumer Financial Protection Bureau issued its seventh biennial review of the consumer credit card market as directed by the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act). In this report, the Bureau analyzes data from several sources to examine many aspects of the consumer credit card market as of the end of 2024. The CFPB revisits topics covered in earlier reports, such as deferred interest and innovations in the marketplace, while introducing new areas of focus this year. The CFPB also analyzes how cardholders spend by merchant category, review promotional interest rates, and take a deeper look into card transaction disputes. Key findings include: purchase volume on consumer credit cards increased to $3.6 trillion in 2024, up from $3.2 trillion in 2022; credit card balances exceeded $1.2 trillion in 2024 as the average balance per cardholder surpassed pre-pandemic levels in 2023 and 2024; cash back credit cards now make up the leading share of all general purpose accounts; credit cards with a zero percent introductory APR promotion in 2024 represented $899 billion in purchase volume and $352 billion in balances by the end of the year; and artificial intelligence (AI) and other technological advancements have enabled innovations in the credit card market and may introduce new competitive dynamics.

CREDIT, DEBIT AND GIFT CARDS—The Consumer Financial Protection Bureau published its College Credit Card Agreements Annual Report to Congress pursuant to the Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act). The CARD Act requires the CFPB to share information with Congress and the public regarding agreements between credit card issuers and (1) institutions of higher education or (2) certain affiliated organizations, such as an alumni organization or a foundation associated with the institution. The data in this report are compiled from submissions to the CFPB from credit card issuers. Issuers are required to submit the following information with respect to each such agreement: the number of credit card accounts covered by the agreement that were open at yearend; the amount of payments made by the issuer to the institution or affiliated organization during the year; the number of new credit card accounts covered by the agreement that were opened during the year; and any Memorandum of Understanding between the issuer and the institution or affiliated organization that directly or indirectly relates to any aspect of the agreement. The data do not reflect all credit card accounts opened by students. Card issuers’ submissions do not include information regarding credit card accounts opened by students independent of a college credit card agreement, such as when a student applies directly through the credit card issuer’s website.

CREDIT, DEBIT AND GIFT CARDS—The Federal Reserve Board has released its biennial report on debit card transactions showing slower growth in 2023 and rising fraud losses across the industry. Payment networks processed 100.7 billion debit and prepaid transactions valued at $4.7 trillion, up 4.6 percent annually since 2021. Dual message networks continued to dominate transaction volume, while card not present payments climbed to nearly half of total value. Interchange fees totaled $34.1 billion in 2023, and network fees rose to $12.95 billion. Fraud losses increased to 17.6 basis points, with merchants absorbing nearly half of all losses. Prepaid cards recorded the highest fraud rates among all transaction types.

DIRECTORS, OFFICERS AND EMPLOYERS—The Federal Reserve Board has announced that it will continue its no action stance on certain Regulation O restrictions as it weighs potential rule changes. In a statement, the Fed further explained that it will not take enforcement action against asset managers that are principal shareholders of banks—or the banks themselves—for extensions of credit to related interests that would otherwise violate Regulation O, provided specified conditions showing a lack of control are met. The temporary relief also covers related reporting requirements under FDIC Part 363. The policy remains in effect until Jan. 1, 2027, unless replaced by a final rule. The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have issued a similar statement to clarify supervisory expectations for OCC- and FDIC-supervised institutions’ compliance with insider lending restrictions and related reporting requirements with respect to certain types of related interests (see Banking and Finance Law Daily, Dec. 19, 2025).

MORTGAGES—The Office of the Comptroller of the Currency has issued a notice and request for comment concerning the renewal of its information collection titled “Appraisals for Higher-Priced Mortgage Loans.” Comments must be received by Feb. 23, 2026.

RECEIVERSHIPS—The Federal Deposit Insurance Corporation has announced updates to its public website to enhance transparency around the marketing and sale of failing financial institutions. These enhancements include posting template agreements—such as purchase-and-assumption and confidentiality documents—for franchise and loan pool transactions. The agency also added a new page detailing loan pools offered to asset buyers prior to bank failure, and clarifying procedures for non-bank asset bidders and alliance bids. The FDIC noted that the updates to the webpages reflect lessons learned from the 2023 bank failures and was supported by extensive outreach during the FDIC’s bidding process review. Institutions can now view and comment on these template documents, with feedback directed to InstitutionSales@FDIC.gov. The changes aim to facilitate advance review by potential acquirers and strengthen market confidence in the FDIC’s resolution process.

RECEIVERSHIPS—The Federal Deposit Insurance Corporation has provided an update regarding large bank resolution planning under the Insured Depository Institution (IDI) Rule. The guidance applies to FDIC-insured banks with at least $50 billion in consolidated assets and reflects modifications made in April 2025 that streamline reporting by exempting information deemed speculative or of low value (see Banking and Finance Law Daily, April 21, 2025). According to the update, the FDIC will formally propose amendments in 2026 to codify these content exemption and FAQ provisions and further tailor requirements based on lessons from the 2025 filing cycle. The agency is also reviewing overlapping elements between the IDI Rule and the Title I Rule—governing bank holding company resolution plans submitted to the FDIC and Federal Reserve. For 2026, certain subsidiaries of U.S. global systemically important banks will submit interim supplements by July 1, while other covered institutions will follow existing timelines, though some may receive delayed deadlines until a final rule is issued. Additionally, the FDIC plans to begin virtual data room capabilities testing in early 2026 to ensure rapid due diligence ability in a failure scenario.

TRUTH IN LENDING—The Consumer Financial Protection Bureau issued an advisory opinion to resolve regulatory uncertainty regarding: (1) the applicability of the definition of credit under Regulation Z, which implements the Truth in Lending Act, to earned wage access (EWA) products that conform to the description of “Covered EWA” provided in part I.C.2 of the advisory opinion; and (2) the applicability of the definition of finance charge under Regulation Z to certain EWA-related charges (expedited delivery fees, tips) to the extent any EWA products meet the Regulation Z definition of credit. The CFPB is also withdrawing a proposed interpretive rule. This advisory opinion was effective on Dec. 23, 2025.

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