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Agencies Issue Guidance on Lending to Individuals Not Legally Authorized to Work in the United States
As previously reported, in May 2026, the President issued Executive Order 14406 (EO 14406) titled “Restoring Integrity to America’s Financial System.” 91 FR 30479. EO 14406 had various goals, one of which was to address the credit risks posed by extending financial services to non-work authorized individuals.
Nacha Operating Rules Updated to Incorporate New Fraud Prevention Measures
Recently, the Nacha Operating Rules were updated to add two new rules, each of which are intended to enhance ACH network-related fraud prevention measures. The first rule provides for new originating depository financial institution (ODFI) and receiving depository financial institution (RDFI) risk-based fraud detection and prevention practices.
NCUA Finalizes Rule Prohibiting Use of Reputation Risk
On June 25, 2026, the NCUA published a final rule titled “Prohibition on the Use of Reputation Risk” (“Final Rule”). The rule became effective July 27, 2026, and aligns with Executive Order 14331 “Guaranteeing Fair Banking for All Americans.” The NCUA previously discontinued the use of reputation risk in its supervision program effective September 25, 2025.
FRB’s Publishes Notice of Proposed Rule to Amend Regulation O
On August 4, 2026, the Federal Reserve Board of Governors (FRB) published a Notice of Proposed Rulemaking (NPR) to amend Regulation O (12 CFR Part 215) and requested public comment. 91 FR 49526. As background, Regulation O governs the extension of credit by a financial institution to bank “insiders,” such as executive officers, directors, principal shareholders, and their related interests.
FDIC and OCC Propose Amendments to CRA Regulations
Rather than finalize a proposal to rescind their 2023 final Community Reinvestment Act (CRA) rulemaking (“2023 CRA Final Rule”), the FDIC and OCC (“agencies”) recently issued a proposed rule which, if finalized, would make targeted changes to their legacy CRA rules (“new proposal”).
Table of Contents
CONSUMER FINANCE
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Agencies Issue Guidance on Lending to Individuals Not Legally Authorized to Work in the United States
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Federal Housing Administration Transitions to the UAD 3.6 Standard
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CFPB Seeks Public Input on Improving Access to Mortgage Credit
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CFPB Reopens Review of Credit Card Late Fee Regulation
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Appeal Filed in Litigation Challenging California Subordinate Mortgage Servicing Law
BANKING OPERATIONS & FINTECH
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Nacha Operating Rules Updated to Incorporate New Fraud Prevention Measures
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Two Proposed Federal Laws Introduced Aimed at Helping Institutions Prevent Payments Fraud
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U.S. Supreme Court Rules People Have a Reasonable Expectation of Privacy in Cell Phone Location History
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FinCEN Issues Alert on Fuel Smuggling and Tax Evasion Schemes Associated with Mexico-Based Cartels
CREDIT UNIONS
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NCUA Finalizes Rule Prohibiting Use of Reputation Risk
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NCUA Finalizes Eleven Rules as Part of its Deregulation Project
CORPORATE GOVERNANCE
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FRB’s Publishes Notice of Proposed Rule to Amend Regulation O
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Community Bank Leverage Ratio Framework: Community Bank Compliance Guide Updated
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FDIC and OCC Issue Proposal to Change Rules Governing Confidential Supervisory Information
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FRB Proposes to Modernize Mutual Holding Company Regulations
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FDIC Launches the New Office of Supervisory Appeals
CRA/HMDA CORNER
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FDIC and OCC Propose Amendments to CRA Regulations
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