2023 Community Reinvestment Act Final Rule Rescinded

The federal bank regulatory agencies announced, in light of pending litigation, their intent to issue a proposal to both rescind the Community Reinvestment Act (CRA) final rule issued in October 2023 and reinstate the CRA framework that existed prior to the October 2023 final rule. The agencies will continue to work together to promote a consistent regulatory approach on their implementation of the CRA.

The October 2023 final rule was the first major revision to CRA regulations, which were established in 1977, in nearly three decades. The final rule was scheduled to take effect in April while requiring bank compliance by Jan. 1, 2026.

Community Reinvestment Act (CRA) regulations remain largely under the 1995/2021 framework. See the Community Reinvestment Act chapter of The Gold Book for details and upcoming rules as they are announced.

Agencies Announce Intent to Rescind 2023 CRA Final Rule

On March 28, 2025, the federal bank regulatory agencies announced, in light of pending litigation, their intent to issue a proposal to both rescind the Community Reinvestment Act (CRA) final rule issued in October 2023 and reinstate the CRA framework that existed prior to the October 2023 final rule. The agencies will continue to work together to promote a consistent regulatory approach on their implementation of the CRA.

What's New? Exemptions for Appraisal Requirements for Higher-priced Mortgage Loans

The Consumer Financial Protection Bureau, the Federal Reserve Board, and the Office of the Comptroller of the Currency announced that the 2025 threshold for higher-priced mortgage loans that are subject to special appraisal requirements will increase from $32,400 to $33,500.

The threshold amount will be effective January 1, 2025, and is based on the 3.4 percent annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, as of June 1, 2024.

Read more in the Truth in Lending (Reg Z) chapter of The Gold Book under Higher Priced Mortgage Loans >> Appraisal Rule.

CFPB Proposes Rules to Help Homeowners Avoid Foreclosure

The Consumer Financial Protection Bureau (CFPB) recently proposed new rules to make it easier for homeowners to get help when they are struggling to pay their mortgage. The proposal, if finalized, would require mortgage servicers to focus on helping borrowers, not foreclosing, when a homeowner asks for help. The proposed changes would also make it simpler for servicers to offer assistance by reducing paperwork requirements, improve communication with borrowers, and ensure critical information is provided in languages borrowers understand. 

The new provisions would not apply to small servicers. All existing requirements remain in effect until the effective date of a final rule.

What's New? Guide to HMDA Reporting Updated.

The Federal Financial Institutions Examination Council (FFIEC) has revised “A Guide to HMDA Reporting: Getting it Right!” for 2024. This updated guide assists banks in complying with the Home Mortgage Disclosure Act (HMDA) and Regulation C, incorporating changes to the asset-size exemption threshold effective January 1, 2024. It is specifically relevant to community banks subject to HMDA data collection and reporting requirements.

The Guide is a valuable resource for assisting all institutions in their HMDA reporting. It includes a summary of responsibilities and requirements, directions for assembling the necessary tools, and instructions for reporting HMDA data. Read more in The Gold Book.

A Guide to HMDA Reporting: Getting It Right!

What's New? 23 BOI Filing Exemptions

On January 1, 2021, Congress enacted the National Defense Authorization Act of 2021. Within that act and as part of the Anti-Money Laundering Act of 2020, Congress enacted what we now know as the Corporate Transparency Act (CTA). The CTA requires certain entities, both domestic and foreign, to file a beneficial ownership information (BOI) report, which provides information about their owners, management, and individuals who assisted in the creation of the entities, with the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN). The CTA issued a Small Entity Compliance Guide providing an overview of the CTA, guidance on how one might go about determining whether a company is, or is not, a reporting company for CTA purposes, an explanation of the process of determining who is deemed a beneficial owner under the CTA, and finally, the 23 exemptions provided in the CTA and addresses key points to note.

Read more about BOI Filing Exemptions in Beneficial Ownership section of The Gold Book. 

What's New? Small Business Lending Rule

The CFPB is extending compliance deadlines for the small business lending rule. After the CFPB issued this rule on March 30, 2023, some lenders filed challenges against it in federal court. The compliance dates have been extended accordingly. Read more about the Small Business Lending Rule and the extended compliance dates in The Gold Book. 

What's New? Reg CC Threshold Adjustments

The Board of Governors of the Federal Reserve System (Board) and the Consumer Financial Protection Bureau (CFPB) are amending Regulation CC, which implements the Expedited Funds Availability Act (EFA Act), to adjust for inflation dollar amounts relating to availability of funds. In 2019, the Board and the CFPB finalized a rule that formally set a methodology for inflation adjustments which occur every five years. The new threshold amounts may be found in The Gold Book, Electronic Funds Availability Act chapter.

NACHA Rule Update

On March 18, Nacha, the organization that governs the ACH network, announced that its members approved a new set of rules aimed at reducing the incidence of frauds, such as business email compromise (BEC), that exploit credit-push payments. These rules establish a base level of ACH payment monitoring for all parties in the ACH Network, excluding consumers. While these rules do not alter the liability for ACH payments, they do, for the first time, assign a defined role to receiving depository financial institutions (RDFIs) in monitoring the ACH payments they receive.

The first amendment becomes effective October 1, 2024 and does the following:

• Allows an RDFI to use return reason code R17 to return an entry that it thinks is fraudulent.
• Expands the use of request for return (R06) for the originating depository financial institution (ODFI) to request a return from the RDFI for any reason.
• Provides RDFIs with an additional exemption from the funds availability requirements to include credit entries that the RDFI suspects are originated under false pretenses.
• Provides that a written statement of unauthorized debit (WSUD) may be signed and dated by the receiver on or after the date on which the entry is presented to the receiver (either by posting to the account or by notice of a pending transaction), even if the debit has not yet been posted to the account.
• Requires the RDFI to return a consumer debit that has been claimed to be unauthorized by the opening of the sixth banking day following the completion of its review of the consumer’s signed WSUD.

The second phase of amendments becomes effective on March 20, 2026.

The Gold Book will be updated accordingly as the compliance date(s) approaches.

What's New? Risk Management: Third Party Relationships

The Board of Governors of the Federal Reserve (Board), the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued joint interagency guidance in 2023 to all banking organizations supervised by the agencies on managing risks associated with third-party relationships. Read more under Risk Management: Third Party Relationships in the Compliance chapter of The Gold Book. 

Beneficial Ownership Small Entity Compliance Guide

FinCEN has publishing a Small Entity Compliance Guide to help small entities comply with the requirements of the Beneficial Ownership Information Reporting Rule. In particular, small entities may have new requirements under the Reporting Rule.

Click here for the Small Entity Compliance Guide.

Click here to read more about the Beneficial Ownership Rules in The Gold Book. 

Guidance on Overdraft Protection Practices

The FDIC, OCC and Federal Reserve have recently issued guidance on overdraft protection program practices, risk management, and representment. 

FDIC: Supervisory Guidance on Multiple Re-Presentment NSF Fees

OCC: Overdraft Protection Programs: Risk Management Practices

Federal Reserve: Supervisory Observations on Representment Fees

Also see The Gold Book for continuing updates:

Checking Accounts: Overdraft Protection Programs

Electronic Collection of Fees

What's New? Small Business Lending Rule

he CFPB issued guidance on how it intends to enforce the final rule on Section 1071 of the Dodd-Frank Act, which requires lenders to collect and report credit application data for small businesses, including women-owned and minority-owned small businesses. Read more about the Small Business Lending Rule in The Gold Book. 

Beneficial Ownership Reporting

The  Financial  Crimes  Enforcement  Network  issued a final rule  establishing  a  beneficial ownership  information  reporting  requirement.  The  rule will require most U.S. corporations, limited  liability  companies,  and  other  entities  to  report  to  FinCEN information about their  beneficial  owners—those  who  ultimately  own  or  control  the company. The rule enacts provisions  of  the  Corporate  Transparency  Act—passed  as  part  of  the  Anti-Money  Laundering  Act—to  strengthen  national  security  and  the integrity  and  transparency  of  the  U.S.  financial  system. 

Read this and more about the Beneficial Ownership rules here.

What's New? Environmental Crimes

The Financial Crimes Enforcement Network (FinCEN) has issued Notice (FIN-2021-NTC4) to call attention to an upward trend in environmental crimes and associated illicit financial activity. Environmental crimes frequently involve transnational organized crime and corruption and are often associated with a variety of other crimes including money laundering, bribery, theft, forgery, tax evasion, fraud, human trafficking, and drug trafficking. Financial institutions’ SAR fillings, in conjunction with effective implementation of their Bank Secrecy Act (BSA) compliance requirements, are crucial to identifying and stopping environmental crimes and related money laundering. Read more about Environmental Crimes and SAR Reporting in The Gold Book.

What's New? EFT FAQs

The CFPB has updated its FAQs on the Electronic Funds Transfer Act. Find out more here in The Gold Book and more in the Electronic Funds Transfer Act sub-chapter. 

What's New? The NY HERO Act

The New York State Department of Health has extended, until January 15, 2022, its designation of Covid-19 as a highly contagious communicable disease, thereby continuing the requirement that employers keep their health and safety plans activated pursuant to the NY Hero Act until at least that date. Visit The Gold Book to read more about the NY Hero Act and other NYS Covid-19 Relief topics.

What's New? OCC June 2020 CRA Rule Rescinded

On December 14, 2021, the Office of the Comptroller of the Currency (OCC) issued a final rule to rescind the June 2020 Community Reinvestment Act (CRA) rule and replace it with a rule based on the rules adopted jointly by the federal banking agencies in 1995, as amended. The final rule aligns the OCC's CRA rules with the current Board of Governors of the Federal Reserve System and Federal Deposit Insurance Corporation rules and thereby facilitates the ongoing interagency work to modernize the CRA regulatory framework and create consistency for all insured depository institutions. To read more on this topic, visit the the CRA chapter of The Gold Book or the OCC Bulletin here.

What's New? TIL Exam Procedures and New QM Categories

The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council (FFIEC) has adopted revised interagency examination procedures for the Truth in Lending Act (TILA), implemented by Regulation Z. The revised interagency procedures reflect amendments to Regulation Z to promote consistency in the examination process and communication of supervisory expectations and to reflect the following changes to Regulation Z:

• The new general qualified mortgage (QM) definition.
• A new category of QMs called seasoned QMs.
• A delay in the mandatory compliance date for the new general QM definition until October 1, 2022.

Read more about the Ability-to-Repay/Qualified Mortgage Rule in The Regulation Z section of The Gold Book.

New Series W-8 Forms Issued

The Internal Revenue Service has released updated and revised Forms W-8 and instructions. The Form W-8BEN and W-8BEN-E are final effective October 2021 (Form W-8IMY remains in draft). Click here to see more information on the IRS website.