BCG Monthly Newsletter

Bankers’ Compliance Group® is pleased to provide its members with a monthly online Newsletter that keeps members informed on current topics related to Dodd-Frank Regulatory Reform, Consumer Finance, Operations, Commercial Lending, etc. BCG members can view the current Newsletter by selecting the download button below.
 

States Challenge OCC's Preemption of Interest-on-Escrow Laws
On August 11, 2026, a coalition of 10 states filed a lawsuit to block two recent rulemakings by the OCC that preempts certain state laws requiring national banks and federal savings associations to pay interest on funds held in mortgage escrow accounts.  The group of states include Oregon, New York, California, Connecticut, Maine, Maryland, Massachusetts, Minnesota, Rhode Island, and Vermont.  State of Oregon et al. v. Office of the Comptroller of the Currency et al., No. 3:26-cv-01672-SI (D. Or. filed Aug. 11, 2026).

OCC Issues Consent Order Against New York Bank Related to BSA/AML Deficiencies in Payment Processing Activities
On April 24, 2026, the OCC entered into a consent order with Community Federal Savings Bank (CFSB) for deficiencies in its Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program (the “Order”).  According to the Order, CFSB significantly grew its payment processing line since 2020, resulting in a significant growth in annual wire and ACH activity.  However, despite the growing volume of transactions, CFSB failed to maintain proper controls and risk management processes commensurate with its risk and growth.  In particular, the Order indicated that CFSB had deficiencies in its suspicious activity monitoring processes, customer due diligence program and independent testing protocols for BSA/AML compliance.

NCUA Announces 21st Century ROAD to Housing Act Changes to FCU Board Meetings are Self-Executing
As previously reported by BCG, the 21st Century ROAD to Housing Act (the “21st Century Act”) (Public Law No. 119-101) became effective law in the United States on July 11, 2026.  The Senate and House of Representatives each passed it by an overwhelming majority, with President Trump neither signing nor vetoing the bill after 10 days. 

OCC and FDIC Issue Final Rule to (Finally) Define Unsafe or Unsound Practices
On August 27, 2026, the OCC and FDIC (collectively the “Agencies”) issued a joint final rule (the “Final Rule”) to formally define the term “unsafe or unsound practice” as used in the context of examinations and enforcement actions.  91 FR 56004.

Table of Contents

CONSUMER FINANCE

• States Challenge OCC’s Preemption of Interest-on-Escrow Laws
• CFPB Ends Discretionary Publication of Consumer Complaint Narratives
• HUD Supplements Disparate Impact Proposed Removal With New Proposed Rule
• Agencies Rescind Interagency Statement on Special Purpose Credit Programs

BANKING OPERATIONS & FINTECH

• OCC Issues Consent Order Against New York Bank Related to BSA/AML Deficiencies in Payment Processing Activities
• FinCEN Issues Alert on Fraud Schemes Targeting Federal Student Aid
• OCC Enters into BSA/AML Cease and Desist Order with United Texas Bank
• Bill Amending California’s Financial Elder Abuse Reporting Law Awaiting Governor’s Signature
• CFPB Sends Section 1033 Proposed Rule To White House for Review

CREDIT UNIONS

• NCUA Announces 21st Century ROAD to Housing Act Changes to FCU Board Meetings are Self-Executing

CORPORATE GOVERNANCE AND MANAGEMENT

• OCC and FDIC Issue Final Rule to (Finally) Define Unsafe or Unsound Practices
• Seventh Circuit Holds that the Jarkesy Decision Does Not Prohibit the FDIC’s Use of Administrative Hearings Without a Jury Trial