News By Edition

The 2024 Regulatory & Risk Management Indicator Survey by Wolters Kluwer highlighted key shifts in compliance concerns among financial services professionals amid persistent uncertainty from both a regulatory and economic perspective. The global information services firm supplemented its survey responses, compiled in December last year, with a webinar and a poll shortly after the second Trump administration entered the White House.

A federal judge issued a preliminary injunction against the Consumer Financial Protection Bureau (CFPB) and Trump administration officials, ruling that recent staff cuts and other actions were part of an unlawful attempt to eliminate the CFPB, as argued by the union representing agency employees. Although the plaintiffs in the case welcomed the decision, the matter is not settled. A day after the March 28 ruling, the defendants filed an appeal in the U.S. D.C. Court of Appeals.

Another chapter was written in the ongoing legal saga concerning the embattled Consumer Financial Protection Bureau last week. Shortly after a federal court partially lifted a court order preventing mass firings at the bureau, the Trump administration resumed its plans to gut the agency, prompting the courts to intervene again.

Federal banking regulators granted conditional approval for a $35.3 billion merger agreement through which Capital One Financial Corp. will acquire and merge with Discover Financial Services. As a condition of regulatory approval, Discover must settle any outstanding enforcement actions against the company.

The Federal Deposit Insurance Corp. announced a newly modified approach to resolution planning for large banks geared toward focusing on the most relevant operational information for safety and soundness considerations.

All eyes are on the Federal Reserve as concerns about the economic implications of recent policy changes regarding trade and other factors proliferate among consumers and business leaders. Read about these developments and more in this regulatory roundup.

Whistleblowers who aided the Securities and Exchange Commission in laying a “roadmap” for an enforcement action received approximately $6 million in award payments for their help in providing new and useful information to federal examiners, the agency announced.

The National Credit Union Administration addressed concerns about the Trump administration’s decision to fire two of its three board members on April 18 in a message to the agency’s staff.

A federal court ordered Bank of America to pay nearly $540.3 million for underpaying for deposit insurance. The issue stemmed from a calculation error due to a misinterpretation of a 2011 rule enacted by the Federal Deposit Insurance Corp. The rule in question applies when calculating a federally-insured bank’s “counterparty exposure” level for the purpose of ensuring an institution’s safety and soundness.

The Trump administration fired the National Credit Union Administration (NCUA) Board’s two Democratic members. The decision leaves NCUA Chair Kyle Hauptman, a Republican, as the board’s only remaining member.

The Office of the Comptroller of the Currency announced an organizational restructure which entails the consolidation of its supervisory functions for large, midsize and community banks, among other changes. The announcement set off alarm bells in the community banking sector.

Federal Housing Finance Agency Director Bill Pulte levied accusations of mortgage fraud against New York State Attorney General Letita James in a letter submitted to the Department of Justice.

The Federal Bureau of Investigation’s Boston division issued a warning to real estate professionals and borrowers about increasing reports of fraud targeting transactions across the Northeast.

Republican lawmakers in the House and Senate have introduced legislation to overturn a 2024 final rule updating the process the Office of the Comptroller of the Currency uses to review proposed bank mergers.

The D.C. Circuit Court of Appeals stayed portions of a preliminary injunction imposed by a district court last month to halt actions aimed at dismantling the Consumer Financial Protection Bureau (CFPB). The appeals court ruled the bureau must maintain adequate resources to perform its statutory duties.

A federal court vacated the Consumer Financial Protection Bureau’s final rule regulating credit card late fees, drawing praise from the financial services industry. The credit card late fee rule would have capped the safe harbor dollar amount for late fees at $8.

New Jersey Attorney General Matthew Platkin and the Division on Civil Rights issued a finding of probable cause against a same-day lender alleging the business refused to lend to prospective clients based on race, national origin and nationality. The finding alleged the firm’s owner and other employees instructed sales staff not to do business with people of certain racial and ethnic groups.

The Consumer Financial Protection Bureau announced it will not prioritize enforcement or supervisory actions pursuant to its regulation requiring nonbank financial institutions caught violating the law to register with the bureau.

The House passed its budget resolution, setting the stage for Congress to begin its reconciliation process, which is expected to include discussions about extending the 2017 Tax Cuts and Jobs Act cuts while implementing additional cuts, reducing spending, and raising the debt ceiling.

The Federal Deposit Insurance Corp. (FDIC) is considering actions banking industry professionals frequently describe as “right-sizing” the regulatory framework applied to financial institutions. During the 2025 American Bankers Association Summit in Washington, D.C., FDIC acting director French Hill discussed the potential for easing capital standards for the largest and most complex institutions, as well as the impact volatile market conditions may have on the banking sector.

The U.S House passed two measures nullifying rules finalized by the Consumer Financial Protection Bureau under the Biden-Harris administration with strong support from Republicans. The resolutions of disapproval targeted the bureau’s rule capping overdraft fees and its larger participant rule, applying to large digital payment providers.

The Government Accountability Office published a list of recommendations for how three federal agencies tasked with identifying and preventing scammers from harming consumers, companies and national security can better collaborate to accomplish certain shared objectives.

With federal regulatory agencies undergoing seismic shifts in leadership and priorities, state attorneys general are ramping up supervisory and enforcement activities with respect to consumer financial protection laws. Recognizing this fact, Ballard Spahr assembled a team of attorneys whose specialties include helping financial institutions chart a course through increasingly complex state-level regulatory waters.

As the Consumer Financial Protection Bureau prepares to rethink its final rule implementing small business lending requirements detailed in Sec. 1071 of the Dodd-Frank Act, community banking advocates expressed support for bills requiring the bureau to delete information collected about loan applicants for the sake of privacy.

The Office of the Comptroller of the Currency disclosed a data breach potentially exposing sensitive information about financial institutions in a report to Congress. The federal banking regulator said the breach stemmed from unauthorized access via “compromised email messages.”

Real estate finance professionals welcomed the reintroduction of legislation in the House and Senate aimed at eradicating the use of trigger leads in the real estate marketplace. The bills are the latest in a long series of bipartisan attempts to do so over the past half decade.

The House passed a resolution nullifying the Consumer Financial Protection Bureau’s (CFPB) final rule imposing a cap on overdraft fees charged by depository institutions. The 217-211 vote to repeal the controversial rule that would limit the maximum fee consumers could be charged for a single overdraft.

In his latest speech regarding the state of monetary policy and the U.S. economy, Federal Reserve Chair Jerome Powell acknowledged the growing concerns about expected inflation stemming from newly announced tariffs and slower projected GDP growth but insisted “the economy is still in a good place.”

The Securities and Exchange Commission voted to end its defense of its rules requiring disclosure of climate-related risks and greenhouse gas emissions, which have been subject to multiple litigation efforts in federal court.

The financial services industry has had its hands full keeping up with a multitude of actions by federal agencies rescinding and sometimes replacing guidance and entire programs related to regulatory provisions and the treatment of digital assets. Learn about some of the most recent actions affecting financial policy in this regulatory roundup.

A bipartisan coalition of senators wrote to U.S. Department of the Treasury Secretary Scott Bessent expressing their support for the Treasury’s Community Development Financial Institutions Fund, which a recent executive order from President Donald Trump called for eliminating.

Acting leadership at the Consumer Financial Protection Bureau has appealed the D.C. District Court’s decision to impose a preliminary injunction against further actions it deems as tantamount to an effort to eliminate the agency, as claimed in a lawsuit filed by the National Treasury Employees Union.

The U.S. Small Business Administration has restored lender fees to its 7(a) loan program to improve the program’s financial integrity. The Biden administration waived the fees to encourage more small-business lending but doing so led to the program’s first negative cash flow in more than a decade.

Rocket Companies reached a $9.4 billion agreement with Mr. Cooper to acquire the mortgage servicer in an all-stock purchase agreement that leaders of both companies say will generate more revenue opportunities, as well as value and cost savings for their clients. The transaction is expected to close in the fourth quarter, pending regulatory approval.

The Trump administration announced it intends to eliminate a Department of Veteran Affairs’ (VA) program launched last year to help veterans who are struggling financially to avoid foreclosure. The mortgage industry had supported the program’s formation to replace the VA’s “partial claim” program, which some Republicans now want to bring back in some capacity.

Pacific Residential Mortgage, LLC, reported a data breach to the California Attorney General on March 25, stemming from a ransomware attack against the Oregon-based mortgage company.

The Senate Banking Committee voted to advance the Trump administration’s picks to run the Office of the Comptroller of the Currency and the Securities Exchange Commission in a pair of 13-11 party-line votes.

The Consumer Financial Protection Bureau announced it will not prioritize enforcement or supervisory actions with respect to certain aspects of its final rule regulating payday, vehicle title, and certain high-cost installment loans.

The federal bank regulatory agencies announced their intent to rescind the 2023 Community Reinvestment Act (CRA) final rule and reinstate the CRA framework that existed prior to the October 2023 final rule, citing “pending litigation.” The decision was welcomed by the financial services industry but disappointing to consumer advocates.

The Consumer Financial Protection Bureau asked a federal court to reverse a decision that resulted in a settlement with Townstone Financial. The settlement had resolved allegations of redlining and violations of the Equal Credit Opportunity Act against the Chicago mortgage broker.

The Consumer Financial Protection Bureau announced the publication of Home Mortgage Disclosure Act Modified Loan Application Register data for 2024, as required by federal statute.

The National Credit Union Administration released its latest quarterly U.S. Map Review report for the fourth quarter of 2024, highlighting trends among credit unions across the nation using an interactive map on the agency’s website.

As widespread uncertainty continues about the impact of recent policy changes on the U.S. economy, specifically with respect to future rate reductions, Experian North America Chief Economist Joseph Mayans advised attendees at the Consumer Bankers Association’s annual conference in Orlando to stay “nimble” with respect to business strategies.

A litany of longstanding disagreements about how to increase accountability at the Consumer Financial Protection Bureau (CFPB) while still enabling it to carry out its statutory mission came to light during the House Financial Services Committee’s hearing titled, “A New Era for the CFPB: Balancing Power and Reprioritizing Consumer Protections.”

The U.S. Treasury’s Financial Crimes Enforcement Network officially ended the enforcement of beneficial ownership information (BOI) reporting requirements for domestic entities, following a previous announcement on BOI requirements for U.S. companies and individuals.

The Federal Housing Finance Agency rescinded guidance establishing expectations for the government-sponsored enterprises and the Federal Home Loan Banks regarding unfair or deceptive acts or practices.

Western Alliance Bank reported a data breach involving a third-party vendor’s file transfer software, which exposed some customer personal information. The independent mortgage broker said although personal information was compromised, there is currently no evidence of fraud or identity theft resulting from the incident.

The Senate passed a resolution to nullify the Consumer Financial Protection Bureau’s final rule capping overdraft fees offered by financial institutions in a 52-48 party-line vote. The legislation will now need the approval of the full House to then be forwarded to President Donald Trump to be signed into law.