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Appraisal Bias Case That Received Widespread News Coverage is Dismissed
A fair appraisal bias suit that gained widespread national attention was recently dismissed. In Connolly et al. v. Lanham, et al, No. 22-cv-02048 (D. Md. filed Aug. 15, 2022), the plaintiffs sought to refinance their Baltimore home with loanDepot.
FinCEN Issues Guidance on Crypto ATM Scams
On August 4, 2025, FinCEN issued a notice titled “FinCEN Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments and Other Illicit Activity” (Notice) urging financial institutions to be vigilant in identifying suspicious activity involving convertible virtual currency (CVC) kiosks. For purposes of the Notice, CVC kiosks (or CVC ATMs) are ATM-like devices or electronic terminals that allow customers to exchange real (or fiat) currency for virtual currencies or vice versa.
Eighth Circuit Case Holds That Nonjudicial Foreclosures of Senior Liens Do Not Extinguish Junior Federal Lien
For more than sixty years, parties relied on a 1960 U.S. Supreme Court decision for the assumption that nonjudicial foreclosures conducted in compliance with state law extinguish junior liens held by federal agencies. U.S. v. Brosnan, 363 U.S. 237 (1960). That assumption has recently been called into question by the Eighth Circuit’s 2023 decision in Show Me. State Premium Homes, LLC v. McDonnell, 74 F.4th 911 (8th Cir. 2023).
NCUA Removes References to Disparate Impact from Fair Lending Guide
On September 4, 2024, the National Credit Union Administration (NCUA) announced that the Fair Lending Guide and other issuances have been updated to remove all references to disparate impact liability. The NCUA’s examination processes will no longer include reviews for disparate impact, and the agency will no longer request from the credit unions it supervises: (i) matters related to a credit union’s disparate impact risk; (ii) internal disparate-impact risk analysis; and (iii) disparate-impact risk assessment processes or procedures.
President Trump Issues Executive Order Addressing Politicized or Unlawful Debanking Practices
On August 7, 2025, President Trump issued an executive order aimed at combating perceived discrimination in the banking system based on an individuals’ or businesses’ religious beliefs or lawful business activities. 90 FR 38925. Executive Order 14331, titled “Guaranteeing Fair Banking for All Americans” (“EO 14331”) states that “individuals, their businesses, and their families have been subjected to debanking on the basis of their political affiliations, religious beliefs or lawful business activities, and have suffered frozen payrolls, debt and crushing interest, and other significant harms to their livelihoods, reputations, and financial well-being.”
Table of Contents
CONSUMER FINANCE
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Appraisal Bias Case That Received Widespread News Coverage is Dismissed
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New California Law Requires Payment of Interest on Hazard Insurance Proceeds Held in Loss Draft Accounts
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Fannie, Freddie Revise Reconsideration of Value Requirements
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FDIC Removes References to Disparate Impact from Consumer Compliance Examination Manual
BANKING OPERATIONS & FINTECH
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FinCEN Issues Guidance on Crypto ATM Scams
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OFAC Announces Transition to New Licensing Hotline Platform
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FDIC Publishes CIP-related Guidance on Use of Pre-populated Customer Information
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Changes to California Rules on Attorney-client Trust Accounts Will Impact Financial Institutions
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New York Attorney General Sues Zelle Parent Company
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CFPB Publishes Notice of Advance Rulemaking for Section 1033
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FinCEN Extends Effective Dates of Orders Against Mexican Financial Institutions to Counter Fentanyl
COMMERCIAL LENDING
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Eighth Circuit Case Holds That Nonjudicial Foreclosures of Senior Liens Do Not Extinguish Junior Federal Lien
CREDIT UNIONS
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NCUA Removes References to Disparate Impact from Fair Lending Guide
CORPORATE GOVERNANCE
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President Trump Issues Executive Order Addressing Politicized or Unlawful Debanking Practices
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Ninth Circuit Issues Preemption Ruling in Favor of Federal Credit Unions
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