Various state and federal regulators released new regulatory announcements, as well as insight about the general sentiment among community bankers. Multiple developments have implications for lenders and financial institutions serving rural communities, while others have a broader scope of influence. Learn more in this regulatory roundup:
CFPB, Fed announce dollar thresholds for consumer credit, lease transactions
The Consumer Financial Protection Bureau and the Federal Reserve announced the dollar thresholds used to determine whether certain consumer credit and lease transactions in 2025 are subject to certain protections under Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing). Based on the 3.4 percent annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as of June 1, the agencies determined Regulation Z and Regulation M generally should apply to consumer credit transactions and consumer leases totaling $71,900 or less in 2025. However, private education loans and loans secured by real property, such as mortgages, are subject to Regulation Z regardless of the amount of the loan. Learn more here.
FDIC extends comment deadline on brokered deposits rule
The Federal Deposit Insurance Corp. (FDIC) extended the comment period on proposed regulatory revisions governing brokered deposits. The agency has proposed amendments aimed at strengthening prudential protections of the FDIC’s safety and soundness rule (12 CFR Parts 303 and 337) on brokered deposits, which implements Section 29 of the Federal Deposit Insurance Act. The provisions subject to change under the proposal apply to “less than well-capitalized” insured depository institutions, according to the text of the proposal. Interested stakeholders will have until Nov. 21 to submit feedback about the proposal rule, affording them an extra 30 days from the original comment deadline. Learn more here.
Ginnie Mae announces new disclosure for rural borrowers
Ginnie Mae introduced a new monthly disclosure with detailed information on loans in active Ginnie Mae mortgage-backed securities (MBS) with rural borrowers. The new disclosure will be available on the sixth business day of every month, effective immediately. Its data parameters were developed in collaboration between the U.S. Department of Agriculture (USDA) and USDA geographers, focusing on accurately defining rural borrowers. Using the USDA’s Rural-Urban Commuting Area (RUCA) codes, Ginnie Mae concluded borrowers living in RUCA codes 4-10 would be classified as rural. The company plans to disclose the number of loans at the MBS level with rural borrowers and the percentage of unpaid principal balance represented by these loans. Find out more here.
CSBS reports improved outlook among community bankers
Community bankers nationwide have a brighter outlook, despite continued concerns about regulatory burden, according to data released by the Conference of State Bank Supervisors (CSBS). The Community Bank Sentiment Index (CBSI) moved past neutral (100) for the first time since the fourth quarter of 2021, signaling an improved sentiment for the first time in more than three years. The 11-point increase in the third quarter put the index at 110. Five of the seven components surveyed improved, while two indicators remained on the low side. The profitability, franchise value, and monetary policy components increased significantly, with all three indicating a positive outlook. While the business conditions component increased five points from the previous quarter to 80, it continues to suggest a weaker economic outlook. The regulatory burden component remains at 20 points and has been below 30 for 15 straight quarters. Read more here.