Happy New Year - 2026 Brings Adjusted Regulatory Thresholds
Happy New Year! As we step into 2026, there are many thresholds which have been adjusted by both state and federal regulators which go into effect now that the new year has arrived. Below is a collection of thresholds effective January 1, 2026. A link has been provided for each as reference.
Regulation Z, TILA
• The exemption threshold for Regulation Z (Truth in Lending Act) will increase to $73,400, up from $71,900. https:// www.govinfo.gov/content/pkg/FR-2025-12-15/pdf/2025-22814.pdf
• The exemption threshold under Regulation Z for HPML appraisals will increase to $34,200, up from $33,500. https:// www.govinfo.gov/content/pkg/FR-2025-12-16/pdf/2025-22875.pdf
• The asset-size threshold under Regulation Z which exempts creditors from the requirement to establish an escrow account for HPMLs will be:
o For creditors and their affiliates that regularly extended covered transactions secured by first liens, the asset-size threshold is adjusted to $2 785 billion, up from $2.717 billion; and
o The exemption threshold for certain insured depository institutions with assets of $10 billion or less is adjusted to $12 485 billion, up from $12.179 billion. https://www.govinfo.gov/content/pkg/FR-2026-01-07/ pdf/2026-00085.pdf
• The dollar amount thresholds under Regulation Z for HOEPA and QM-related loans have been adjusted as follows:
o For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages will be $27,592
o The adjusted points-and-fees dollar trigger for high-cost mortgages will be $1,380.
o For QMs under the General QM loan definition in § 1026.43(e)(2), the thresholds for the spread between the annual percentage rate (APR) and the average prime offer rate (APOR) will be:
• 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $137,958;
• 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $82,775 but less than $137,958;
• 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $82,775;
• 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $13,958;
• 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $82,775; or
• 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $82,775
Special Focus
o For all categories of QMs, the thresholds for total points and fees will be:
• 3 percent of the total loan amount for a loan greater than or equal to $137,958;
• $4,139 for a loan amount greater than or equal to $82,775 but less than $137,958;
• 5 percent of the total loan amount for a loan greater than or equal to $27,592 but less than $82,775;
• $1,380 for a loan amount greater than or equal to $17,245 but less than $27,592; and
• 8 percent of the total loan amount for a loan amount less than $17,245.
• For open-end consumer credit plans under TILA, the threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1.00 for 2026. https://www.govinfo.gov/content/pkg/FR-2025-12-15/pdf/2025-22773.pdf
Regulation C, HMDA
• The asset-size threshold to be exempt from collecting HMDA data in 2026 is adjusted to $59 million, up from $58 million. https://www.govinfo.gov/content/pkg/FR-202601-07/pdf/2026-00087.pdf
Community Reinvestment Act (CRA)
• The Board of Governors of the Federal Reserve System (FRB) and Federal Deposit Insurance Corporation (FDIC) CRA regulations have adjusted the asset-size thresholds used to define “small bank” and “intermediate small bank” to be:
o Small bank means a bank that, as of December 31 of either of the prior two calendar years, had assets of less than $1 649 billion; and
o Intermediate small bank means a small bank with assets of at least $412 million as of December 31 of both of the prior two calendar years and less than $1 649 billion as of December 31 of either of the prior two calendar years.
• The Office of the Comptroller of the Currency (OCC) made the identical adjustments to the asset-size thresholds used to define “small bank or savings association” and “intermediate small bank or savings association.” https://occ.gov/news-issuances/ bulletins/2025/bulletin-2025-48.html
Required Escrow Rate under Wisconsin Law
• The Wisconsin Department of Financial Institutions (WDFI) has established the interest rate that must be paid on required escrow accounts under section 138.052(5) of the Wisconsin Statutes. The new rate is 0 17% https://dfi.wi.gov/Pages/FinancialInstitutions/BankingSavingsInstitutions/ HistoricalEscrowInterestRates.aspx
Other Regulatory Thresholds and Limits
• The dollar amount of the maximum allowable charge for disclosures by a consumer reporting agency to a consumer pursuant to Fair Credit Report Act (FCRA) section 609 for the 2026 calendar year increases to $16.00, up from $15.50. https://www.govinfo. gov/content/pkg/FR-2025-12-15/pdf/2025-22772.pdf
January 2026
Volume 31, Number 8
Wisconsin Bankers Association 4721 South Biltmore Lane, P.O. Box 8880, Madison, Wisconsin, 53708-8880
• The exemption threshold for Regulation M (Consumer Leasing Act) will increase to $73,400, up from $71,900. https://www.govinfo.gov/content/pkg/FR-2025-12-15/pdf/2025-22813.pdf
• The FDIC Designated Reserve Ratio remains 2 percent for 2026. https://www.govinfo.gov/content/pkg/FR-2025-1128/pdf/2025-21460.pdf
• Contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $24,500, up from $23,500. The limit on annual contributions to an IRA is increased to $7,500, up from $7,000. https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
• Multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $88 billion for each enterprise, for a combined total of $176 billion. FHFA will continue to require that at least 50 percent of Fannie’s and Freddie’s multifamily business be mission-driven affordable housing. https://www.fhfa.gov/document/2026-multifamily-cap-anddefinitions.pdf
• The conforming loan limit values for mortgages to be acquired by Fannie Mae and Freddie Mac in 2025 for one-unit properties will be $832,750, an increase of $26,250 from 2025. https://www.fhfa.gov/news/news-release/fhfaannounces-conforming-loan-limit-values-for-2026
• FHA’s nationwide forward mortgage limit “floor” and “ceiling” for a one-unit property in 2026 are $541,287 and $1,249,125, respectively. For 2026, the nationwide Home Equity Conversion Mortgage (HECM) limit will be $1,249,125 for all areas. https://www.hud.gov/hud-partners/single-family-lender
• The standard IRS mileage rates for the use of a car (also vans, pickups or panel trucks) will be as follows. The rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.
o 72.5 cents per mile driven for business use, up 2.5 cents from 2025;
o 20.5 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, reduced by a half cent from 2025; and
o 14 cents per mile driven in service of charitable organizations; the same as in 2025. https://www.irs.gov/ newsroom/irs-sets-2026-business-standard-mileage-rate-at-725-cents-per-mile-up-25-cents
Special Focus
Flood Insurance Rules – Remember to Consider Contents Coverage
While there are no new requirements regarding flood insurance, examiners continue to closely scrutinize loan portfolios for compliance with flood insurance rules. Contents coverage has occasionally been an overlooked aspect of flood insurance and carries certain nuances worth noting. This article discusses what the flood insurance rules require for purposes of contents coverage with detailed examples and important concepts to be aware of when determining the correct amount of flood insurance.
Background
The National Flood Insurance Program (NFIP) is administered primarily under the National Flood Insurance Act (NFIA) and the Flood Disaster Protection Act (FDPA). The NFIP is administered by the Federal Emergency Management Agency (FEMA) which makes flood insurance available to property owners within participating communities. The NFIP aims to reduce the impact of flooding by providing affordable insurance to property owners and by encouraging communities to adopt and enforce floodplain management regulations. The FDPA requires the federal financial supervisory agencies to adopt regulations prohibiting banks from making certain loans secured by property in a special flood hazard area (SFHA). For purposes of this article, such loans will be referred to as a “designated loan.” While there are important components to discuss regarding what makes a designated loan, they are outside the scope of this article. For more information on what makes a designated loan, consult the resource provided at the end of the article.
The conversation regarding “contents coverage” begins with the general premise that the flood insurance rules prohibit banks from making, increasing, extending, or renewing any designated loan unless the building or mobile home and any contents securing the loan is covered by flood insurance for the term of the loan (MIRE event). Meaning, a MIRE event requires a bank to ensure that any contents securing that loan is covered by flood insurance. As mentioned above, this step is sometimes forgotten. Furthermore, this leaves some unanswered questions such as “how much contents coverage is needed?” among others. Fortunately, the agencies have provided clarification in the form of questions and answers.
Contents Coverage Concepts
In 2022 the federal financial supervisory agencies (agencies) issued revised Interagency Questions and Answers Regarding Flood Insurance (Q&As). The Q&As clarify that when a building and its contents both secure a loan, and the building is located in a SFHA in which flood insurance is available, flood insurance is required for the building and any contents securing the loan. The agencies also clarify that if contents securing the loan is stored in a building which does not secure the loan, then flood insurance is not required on those contents, regardless of whether the building is in a SFHA. The agencies further clarify that both contents and the building will be considered to have a sufficient amount of flood insurance coverage for regulatory purposes so long as some reasonable amount of insurance is allocated to each category.
For purposes of the following discussion and examples, “Act” refers to the NFIA and FDPA, as revised by the National Flood Insurance Reform Act, Biggert-Waters Flood Insurance Reform Act, and Homeowner Flood Insurance Affordability Act. ‘‘Regulation’’ refers to each agency’s current final flood insurance rule.
Once a bank determines that a designated loan will require contents coverage, the next steps is to determine how much flood insurance coverage must be assigned to the contents. The flood insurance rules require that the amount of flood insurance “must be at least equal to the lesser of the outstanding principal balance of the designated loan or the maximum limit of coverage available for the particular type of property under the Act.” The maximum limit of coverage available for the particular type of property under the Act depends on the value of the secured collateral. Under the NFIP, there are maximum caps on the amount of flood insurance available for buildings located in a participating community. These amounts are currently as follows:
• $250,000 for single-family, two-to-four family dwellings, and individually owned condominium units (a/k/a residential property structures) and $100,000 for contents insured under the Dwelling Form Policy or Residential Condominium Building Association Policy (RCBAP).
• $250,000 multiplied by the number of units for a residential condominium and $100,000 for contents insured under the RCBAP Form. ($100,000 total, not per unit).
•
Special Focus
$500,000 for other buildings (a/k/a non-residential structures) and $500,000 for contents insured under the General Property Form. This includes all non-residential buildings, mixed-use condominium buildings not eligible for coverage under the RCBAP, and other residential buildings of five or more families, such as cooperatives or apartment buildings in the non-condominium form of ownership.
In addition to these maximum caps under the NFIP, the flood insurance rules also provide that “flood insurance coverage under the Act is limited to the building or mobile home and any personal property that secures a loan and not the land itself,” which is commonly referred to as the “insurable value” of a structure. An NFIP policy will not cover an amount exceeding the insurable value of the structure, so the maximum amount of flood insurance coverage is the applicable limit available under the NFIP or the insurable value, whichever is less. Meaning, the amount of flood insurance required by the Act and Regulation is the lesser of:
The outstanding principal balance of the loan, or
• The maximum amount of insurance available under the NFIP, which is the lesser of:
o The maximum limit available for the type of structure, or
o The “insurable value” of the structure.
When this calculation includes contents, this same theory applies. Meaning, the bank must consider the maximums above as well as the insurable value of the contents.
In totality, these concepts can be summarized into the following steps:
1. Is the designated loan secured by a building in a flood zone and contents which are inside that building?
a. If yes, then the bank must take the following steps to ensure that an adequate amount of flood insurance is assigned to both the building and its contents.
2. What is the minimum amount of flood insurance required for the loan?
a. This step is calculated based upon the “lesser of” test described above.
3. Bank is obligated to make sure that both the building and its contents are insured up to a reasonable amount that equals that minimum amount.
a. As a reminder, how much is assigned to the building and the contents is up to the bank so long as it is reasonable.
It is also worth noting that for purposes of this article, the scope is focused on what the flood insurance rules require. The bank can always require more than what the flood insurance rules require. That would be a matter of policy.
Examples
The following examples are provided to help illustrate the concepts discussed above. Examples 1-2 focus on the details of calculating flood insurance coverage. Examples 3-5 illustrate in detail how to calculate flood insurance coverage. Three examples illustrate how to allocate coverage.
Example 1
This example involves a non-residential building. Loan security includes only one equipment shed located in an SFHA in a participating community.
• Outstanding loan principal balance is $300,000.
• Maximum amount of insurance available under the NFIP:
o Maximum limit available for type of structure is $500,000 per building (non-residential building).
o Insurable value of the equipment shed is $30,000 and $10,000 for contents.
Special Focus
Because the minimum amount of flood insurance required is the insurable value of the equipment shed, the insurance required by the flood rules for the equipment shed is $30,000. Contents is not factored into the calculation because contents is not collateral for the loan.
Example 2
This example involves a non-residential building. Loan security includes one equipment shed and equipment located within that same equipment shed located in an SFHA in a participating community.
• Outstanding loan principal balance is $300,000.
• Maximum amount of insurance available under the NFIP:
o Maximum limit available for type of structure is $500,000 per building (non-residential building) and $500,000 for contents.
o Insurable value of the equipment shed is $30,000 and the insurable value of the equipment located within the shed is $10,000.
Because the minimum amount of flood insurance required is the insurable value of the equipment shed combined with the insurable value of the equipment, the insurance required by the flood rules for the equipment shed and the equipment is $40,000. Thus, the bank could satisfy the flood rules by ensuring that both the equipment shed and equipment are assigned an amount of insurance, in a reasonable amount, which totals $40,000. The reasonable amount must be calculated based upon the facts and circumstances of the loan. In this example given that the equipment shed has an insurable value of $30,000 and the equipment an insurable value of $10,000, we will assume it is reasonable to assign the equipment shed $30,000 and the equipment $10,000 flood insurance coverage.
Example 3
This example involves a non-residential building. Loan security includes a warehouse and the inventory located within that same warehouse located in an SFHA in a participating community.
• Outstanding loan principal balance is $200,000.
• Maximum amount of insurance available under the NFIP:
o Maximum limit available for type of structure is $500,000 per building (non-residential building) and $500,000 for contents.
o Insurable value of the warehouse is $150,000 and insurable value of the inventory located within the warehouse is $100,000.
Because the minimum amount of flood insurance required is the principal balance of the loan, the insurance required by the flood rules for the warehouse and the inventory is $200,000. Thus, the bank could satisfy the flood rules by ensuring that both the warehouse and the inventory are assigned an amount of insurance, in a reasonable amount, which totals $200,000. The reasonable amount must be calculated based upon the facts and circumstances of the loan. In this example, given that the warehouse has an insurable value of $150,000 and the inventory an insurable value of $50,000, we will assume assigning the warehouse $150,000 and the inventory $50,000 flood insurance coverage is a reasonable amount. Note that this holds true even though the inventory is worth $100,000.
Example 4
This example involves a slight twist on Example 3. Notice that the insurable value of the warehouse has changed. This example involves a non-residential building. Loan security includes a warehouse and the inventory located within that same warehouse located in an SFHA in a participating community.
• Outstanding loan principal balance is $200,000.
• Maximum amount of insurance available under the NFIP:
Special Focus
o Maximum limit available for type of structure is $500,000 per building (non-residential building) and $500,000 for contents.
o Insurable value of the warehouse is $200,000 and insurable value of the inventory located within the warehouse is $100,000.
Because the minimum amount of flood insurance required is the principal balance of the loan, the insurance required by the flood rules for the warehouse and the inventory is $200,000. Thus, the bank could satisfy the flood rules by ensuring that both the warehouse and the inventory are assigned an amount of insurance, in a reasonable amount, which totals $200,000. Just as in Example 3, the reasonable amount must be calculated based upon the facts and circumstances of the loan. It is important to emphasize that when contents coverage is required, the bank must always assign a “reasonable amount” to the contents. This is true even if the building’s value meets or exceeds the minimum flood insurance required, as in this example. Meaning the bank could not insure the warehouse up to its insurable value of $200,000 and leave the contents uninsured. This would be a violation of the flood insurance rules. In this example, we will assume that if the warehouse is insured for $150,000 and the inventory for $50,000 that it is a reasonable amount.
Example 5
This example involves a non-residential building. Loan security includes a building used as a restaurant and the commercial equipment located within that same building located in an SFHA in a participating community.
• Outstanding loan principal balance is $650,000.
• Maximum amount of insurance available under the NFIP:
o Maximum limit available for type of structure is $500,000 per building (non-residential building) and $500,000 for contents.
o Insurable value of the restaurant building is $700,000 and insurable value of the commercial equipment located within the restaurant building is $50,000.
The maximum amount of flood insurance available under the NFIP requires a slightly more complex calculation in this scenario. The maximum amount of flood insurance available under the NFIP is $500,000 for the structure (because this is less than the insurable value of the restaurant building, which is $700,000) and $50,000 for the commercial equipment (because this is less than the maximum limit for contents which is $500,000). Meaning the maximum amount of flood insurance available under the NFIP is $550,000. Because this amount is less than the outstanding principal balance of the loan, $550,000 is the minimum amount of flood insurance required for the transaction. Thus, the bank could satisfy the flood rules by ensuring that both the restaurant building and the commercial equipment are assigned an amount of flood insurance, in a reasonable amount, which totals $550,000.
Conclusion
Contents coverage has occasionally been an overlooked aspect of flood insurance; however, when a building and its contents both secure a loan, and the building is located in a SFHA in which flood insurance is available, flood insurance is required for the building and any contents securing the loan.
In the commercial and agricultural loan setting, it is common within the industry for banks to take security interest in property which includes contents. Because of this, it is important to be aware of the language within the bank’s security agreements, and what it covers, so that the bank is able to meet flood insurance requirements. If the bank does not wish to take contents as collateral to avoid flood insurance implications, it could consider disclaiming the collateral. In this case, the bank should also consider the implications of disclaiming collateral from a loan policy standpoint, understanding that such decisions have broader implications on the security of the loan beyond just flood insurance rules.
The Flood Q&As can be found here: https://www.govinfo.gov/content/pkg/FR-2022-05-31/pdf/2022-10414.pdf
Regulatory Spotlight
Agencies Announce 2026 Regulation M Exemption Threshold.
The Board of Governors of the Federal Reserve System (FRB) and Bureau of Consumer Financial Protection (CFPB) (collectively, the agencies) issued a final rule to amend the official interpretations for the agencies’ regulations that implement the Consumer Leasing Act (CLA). The Dodd-Frank Act amended CLA by requiring that the dollar threshold for exempt consumer leases be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Based on the annual percentage increase in the CPI-W as of 06/01/2025, the exemption threshold will increase from $71,900 to $73,400, effective 01/01/2026. The final rule is effective 01/01/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-15/pdf/2025-22813. pdf Federal Register, Vol. 90, No. 238, 12/15/2025, 57878-57882.
Agencies Announce 2026 Regulation Z Exemption Threshold.
The Board of Governors of the Federal Reserve System (FRB) and Bureau of Consumer Financial Protection (CFPB) (collectively, the agencies) issued a final rule to amend the official interpretations for the agencies’ regulations that implement the Truth in Lending Act (TILA). The Dodd-Frank Act amended TILA by requiring that the dollar threshold for exempt consumer credit transactions be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Based on the annual percentage increase in the CPI-W as of 06/01/2025, the exemption threshold will increase from $71,900 to $73,400, effective 01/01/2026. The final rule is effective 01/01/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-15/pdf/202522814.pdf Federal Register, Vol. 90, No. 238, 12/15/2025, 57882-57888.
Agencies Announce 2026 Regulation Z Exemption Threshold for Appraisals for HPMLs.
The Board of Governors of the Federal Reserve System (FRB), Office of the Comptroller of the Currency (OCC), and Bureau of Consumer Financial Protection (CFPB) (collectively, the agencies) issued a final rule to amend the official interpretations for the agencies’ regulations that implement section 129H of the Truth in Lending Act (TILA). Section 129H of TILA establishes special appraisal requirements for higher-risk mortgages, termed higher-priced mortgage loans (HPMLs). Based on the CPI-W in effect as of 06/01/2025, the exemption threshold will increase from $33,500 to $34,200, effective 01/01/2026. The final rule is effective 01/01/2026. The final rule may be viewed at: https://www. govinfo.gov/content/pkg/FR-2025-12-16/pdf/2025-22875.pdf Federal Register, Vol. 90, No. 239, 12/16/2025, 5814158145.
Agencies Announce 2026 CRA Asset-Size Thresholds.
The Board of Governors of the Federal Reserve System (FRB) and Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) issued a final rule to adjust the Community Reinvestment Act (CRA) regulations asset-size thresholds. Under the regulations, the agencies annually adjust the asset-size thresholds used to define “small bank” and “intermediate small bank.” As required, the adjustment to the threshold amounts is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Applying the annual inflation adjustment methodology, the agencies announced that, from 01/07/2026, through 12/31/2026, “small bank” will mean a bank that, as of December 31 of either of the prior two calendar years, had assets of less than $1.649 billion; and “intermediate small bank” will mean a small bank with assets of at least $412 million as of December 31 of both of the
Regulatory Spotlight
prior two calendar years and less than $1.649 billion as of December 31 of either of the prior two calendar years. The asset-size thresholds are in effect 01/07/2026, through 12/31/2026. The final rule may be viewed at: https://www. govinfo.gov/content/pkg/FR-2026-01-07/pdf/2026-00042.pdf. Federal Register, Vol. 91, No. 4, 01/07/2026, 509-510.
CFPB Announces 2026 Charge Limit for FCRA Disclosures.
The Bureau of Consumer Financial Protection (CFPB) issued a final rule to amend an appendix for Regulation V, which implements the Fair Credit Reporting Act (FCRA). CFPB is required to calculate annually the dollar amount of the maximum allowable charge for disclosures by a consumer reporting agency to a consumer pursuant to FCRA section 609. The final rule establishes the maximum allowable charge for the 2026 calendar year is $16.00. The final rule is effective 01/01/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-15/pdf/202522772.pdf Federal Register, Vol. 90, No. 238, 12/15/2025, 57888-57890.
CFPB Announces 2026 Adjustments for Credit Cards, HOEPA, and QMs.
CFPB issued a final rule to amend the regulation text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). The final rule revises the amounts for provisions implementing TILA and its amendments, including the Home Ownership and Equity Protection Act (HOEPA), and the Dodd-Frank Act. Specifically, for open-end consumer credit plans under TILA, the threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1.00 in 2026. For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages in 2026 will be $27,592. The adjusted points-and-fees dollar trigger for high-cost mortgages in 2026 will be $1,380 For qualified mortgages (QMs) under the General QM loan definition in §1026.43(e)(2), the thresholds for the spread between the annual percentage rate (APR) and the average prime offer rate (APOR) in 2026 will be: 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $137,958; 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $82,775 but less than $137,958; 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $82,775; 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $137,958; 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $82,775; or 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $82,775. For all categories of QMs, the thresholds for total points and fees in 2026 will be 3 percent of the total loan amount for a loan greater than or equal to $137,958; $4,139 for a loan amount greater than or equal to $82,775 but less than $137,958; 5 percent of the total loan amount for a loan greater than or equal to $27,592 but less than $82,775; $1,380 for a loan amount greater than or equal to $17,245 but less than $27,592; and 8 percent of the total loan amount for a loan amount less than $17,245. CFPB adjusts the amounts based on the annual percentage change of the Consumer Price Index (CPI) as of 06/01/2025. The final rule is effective 01/01/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-15/pdf/2025-22773.pdf Federal Register, Vol. 90, No. 238, 12/15/2025, 57890-57896.
CFPB issued a final rule to amend official commentary interpreting requirements of Regulation C, which implements the Home Mortgage Disclosure Act (HMDA), to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Based on the 2.5 average percent increase in the CPI-W for the 12-month period ending November 2025, the exemption threshold is adjusted to $59 million from $58 million. Institutions with assets of $59 million or less as of 12/31/2025, are exempt from collecting HMDA data in 2026. The final rule is effective 01/07/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-07/pdf/2026-00087. pdf Federal Register, Vol. 91, No. 4, 01/07/2026, 445-447.
CFPB Announces Asset-Size Threshold for Exemption from Establishing Escrows for HPMLs.
CFPB issued a final rule to amend the official commentary to Regulation Z in order to make annual adjustments to the asset-size thresholds exempting certain creditors from the requirement to establish an escrow account for a higherpriced mortgage loan (HPML). The exemption threshold for creditors and their affiliates that regularly extended covered transactions secured by first liens is adjusted to $2.785 billion and the exemption threshold for certain insured depository institutions and insured credit unions with assets of $10 billion or less is adjusted to $12.485 billion. The final rule is effective 01/07/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-07/pdf/202600085.pdf. Federal Register, Vol. 91, No. 4, 01/07/2026, 447-452.
Regulatory Spotlight
CFPB Issues Advisory Opinion on Earned Wage Access Products.
CFPB issued an advisory opinion to resolve regulatory uncertainty regarding: (1) the applicability of the definition of credit under Regulation Z, which implements the Truth in Lending Act (TILA), to earned wage access (EWA) products that conform to the description of “covered EWA” provided in part I.C.2 of the advisory opinion; and (2) the applicability of the definition of finance charge under Regulation Z to certain EWA-related charges to the extent any EWA products meet the Regulation Z definition of credit. CFPB also withdrew a proposed interpretive rule. The advisory opinion is effective 12/23/2025. The advisory opinion may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-23/pdf/202523735.pdf Federal Register, Vol. 90, No. 244, 12/23/2025, 60069-60076.
CFPB Files Consumer Credit Card Market Report with Congress.
CFPB issued its seventh biennial Consumer Credit Card Market Report to Congress. The report includes analysis of data from several sources to examine many aspects of the consumer credit card market since CFPB’s most recent biennial report on the same subject in 2023. CFPB released the report on its website 12/30/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-07/pdf/2026-00081.pdf Federal Register, Vol. 91, No. 4, 01/07/2026, 504-505.
FRB Issues Final Rules to Amend Regulations A and D.
The Board of Governors of the Federal Reserve System (FRB) issued a final rule to adopt amendments to Regulation A to reflect FRB’s approval of a decrease in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of FRB’s primary credit rate action. On 12/10/2025, FRB voted to approve a 0.25 percentage point decrease in the primary credit rate, thereby decreasing the primary credit rate from 4.00 percent to 3.75 percent. In addition, FRB had previously approved the renewal of the secondary credit rate formula, the primary credit rate plus 50 basis points. Under the formula, the secondary credit rate decreased by 0.25 percentage points as a result of FRB’s primary credit rate action, thereby decreasing the secondary credit rate from 4.50 percent to 4.25 percent. The amendments to Regulation A reflect the rate changes. The final rule is effective 12/19/2025. The rate changes for primary and secondary credit were applicable 12/11/2025. The final rule may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-12-19/pdf/2025-23389.pdf Federal Register, Vol. 90, No. 242, 12/19/2025, 59367-59368.
FRB issued a final rule to adopt amendments to Regulation D to revise the rate of interest paid on balances (IORB) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORB is 3.65 percent, a 0.25 percentage point decrease from its prior level. The amendment is intended to enhance the role of IORB in maintaining the federal funds rate in the target range established by the Federal Open Market Committee. The final rule is effective 12/19/2025. The rate changes for primary and secondary credit were applicable 12/11/2025. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-19/pdf/2025-23390.pdf Federal Register, Vol. 90, No. 242, 12/19/2025, 59368-59369.
FRB Rescinds Policy Statement on Federal Reserve Act Section 9(13).
FRB issued a final rule to rescind its 2023 policy statement interpreting section 9(13) of the Federal Reserve Act (2023 Policy Statement), which set out a presumption for how FRB would exercise its authority under that provision and elaborated on supervisory expectations at that time related to “novel and unprecedented” activities. FRB also withdrew from the record the SUPPLEMENTARY INFORMATION that accompanied the 2023 Policy Statement, which discussed specific crypto-asset activities. FRB is replacing the 2023 Policy Statement with a new policy statement which is designed to facilitate innovation by state member banks in a manner that is consistent with bank safety and soundness and preserving the stability of the U.S. financial system. The new policy statement also provides guidance to uninsured state member banks and uninsured state-chartered bank applicants for membership who may seek to engage in activities as principal that are not permissible for insured state member banks. The final rule and policy statement is effective 12/22/2025. The final rule and policy statement may be viewed at: https://www.govinfo.gov/content/pkg/FR2025-12-22/pdf/2025-23548.pdf Federal Register, Vol. 90, No. 243, 12/22/2025, 59731-59733.
FRB Announces 2025 Aggregate Global Indicator Amounts.
FRB announced the 2025 aggregate global indicator amounts, as required under its rule regarding risk-based capital surcharges for global systemically important bank holding companies. The rule establishes a methodology to identify
Regulatory Spotlight
global systemically important bank holding companies (GSIBs) in the United States based on indicators that are correlated with systemic importance. See the chart within the notice for specific amounts. The notice is effective 12/16/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-16/pdf/2025-22964.pdf Federal Register, Vol. 90, No. 239, 12/16/2025, 58245-58246.
FRB Seeks Information on Reserve Bank Payment Account Prototype.
FRB seeks information on a special purpose Reserve Bank account prototype (a Payment Account) tailored to the risks and needs of institutions focused on payments innovation. A Payment Account holder would be expected to use its account for the express purpose of clearing and settling the institution’s payment activity. Payment Accounts would be designed to pose limited risk to the Federal Reserve Banks (Reserve Banks) and the overall payment system, and Reserve Banks would generally conduct a streamlined review of requests for the accounts. Any institution that is legally eligible for Federal Reserve accounts or services (accounts and services) under the Federal Reserve Act would be eligible to request a Payment Account from a Reserve Bank. The Payment Account protype does not seek to expand or otherwise change legal eligibility for access to accounts and services. Comments are due 02/06/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-23/pdf/2025-23712.pdf Federal Register, Vol. 90, No. 244, 12/23/2025, 60096-60099.
FDIC Amends Process to Establish or Relocate Branch and Office Locations.
The Federal Deposit Insurance Corporation (FDIC) issued a final rule to amend the processes by which an insured State nonmember bank may establish a branch or relocate a main office or branch by eliminating certain filing requirements, reducing processing timelines, and updating public notice procedures. FDIC also made corresponding changes to procedures applicable to the relocation of an insured branch of a foreign bank. The final rule is effective 02/27/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-29/pdf/2025-23837.pdf Federal Register, Vol. 90, No. 245, 12/29/2025, 60547-60559.
FDIC Issues Interim Final Rule on Special Assessment Collection.
FDIC issued an interim final rule regarding special assessment collection. FDIC collects a special assessment to recover losses arising from the protection of uninsured depositors under the systemic risk exception, as required by statute. To ensure that FDIC recovers the correct amount of losses while minimizing the risk of over-collecting or under-collecting in aggregate, FDIC has adopted an interim final rule to reduce the rate at which the special assessment will be collected in the eighth collection quarter from 3.36 basis points to 2.97 basis points, and provide an offset to regular quarterly deposit insurance assessments for banks subject to the special assessment if the amount collected exceeds losses following the resolution of litigation between FDIC and SVB Financial Trust and again following the termination of the receiverships. The interim final rule is effective 12/19/2025. Comments are due 01/20/2026. The interim final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-19/pdf/2025-23425.pdf Federal Register, Vol. 90, No. 242, 12/19/2025, 56369-59376.
FDIC Announces Intent to Terminate Receiverships.
Notice is hereby given that FDIC, as Receiver for the institution listed in the notice, intends to terminate its receivership for said institution. The liquidation of the assets for the receivership has been completed. To the extent permitted by available funds and in accordance with law, the Receiver will be making a final dividend payment to proven creditors. Based upon the foregoing, the Receiver has determined that the continued existence of the receivership will serve no useful purpose. Consequently, notice is given that the receivership shall be terminated, to be effective no sooner than 30 days after the date of the notice. If any person wishes to comment concerning the termination of the receivership, such comment must be made in writing, identify the receivership to which the comment pertains, and be sent within 30 days of the date of the notice to the address listed in notice. No comments concerning the termination of the mentioned receivership will be considered that are not sent within this timeframe. The notice may be viewed at: https://www.govinfo. gov/content/pkg/FR-2025-12-18/pdf/2025-23293.pdf. Federal Register, Vol. 90, No. 241, 12/18/2025, 59119-59120.
FDIC Seeks Comment on Procedures to Obtain Approval to Issue Payment Stablecoins Through Subsidiary.
FDIC seeks comment regarding a proposed rule that would establish procedures to be followed by an insured State nonmember bank or State savings association that seeks to obtain FDIC approval to issue payment stablecoins through
Regulatory Spotlight
a subsidiary pursuant to the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). Comments are due 02/17/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202512-19/pdf/2025-23510.pdf. Federal Register, Vol. 90, No. 242, 12/19/2025, 59409-59418.
FDIC Seeks Comment on Information Collections.
FDIC seeks comment regarding three information collections: Application to Retire or Reduce Capital; Forms Relating to FDIC Outside Counsel, Legal Support and Expert Services Programs; and Recordkeeping for Timely Deposit Insurance Determination. See the notice for more information about each collection. Comments are due 02/13/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-15/pdf/2025-22826.pdf. Federal Register, Vol. 90, No. 238, 12/15/2025, 58013-58015.
FDIC seeks comment regarding a proposed information collection titled, Survey of the Costs of Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Compliance. The survey seeks to gather information on the direct compliance costs incurred by FDIC-supervised insured depository institutions and, to the extent the expenses overlap with those of other activities, the amount attributable to AML/CFT compliance. FDIC expects to submit the information collection as a common form so that the Federal banking regulators and National Credit Union Association may use the information collection to survey the entirety of the banking and credit union industry. Comments are due 02/09/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-08/pdf/2026-00105.pdf Federal Register, Vol. 91, No. 5, 01/08/2026, 710-712.
OCC Proposes Amendments to Guidelines Relating to Heightening Standards for Certain Large Banks.
The Office of the Comptroller of the Currency (OCC) issued a proposed rule to amend its guidelines relating to heightened standards for insured national banks, insured Federal savings associations, and insured Federal branches (Guidelines) to increase the average total consolidated assets threshold for applying the Guidelines from $50 billion to $700 billion. In addition, the proposal would clarify certain compliance dates and make other technical amendments. Comments are due 03/02/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-30/pdf/202523986.pdf Federal Register, Vol. 90, No. 246, 12/30/2025, 61084-61093.
OCC Proposes State Interest-on-Escrow Laws Preemption Determination.
OCC proposed to issue a preemption determination concluding that federal law preempts state laws that eliminate OCCregulated banks’ flexibility to decide whether and to what extent to (1) pay interest or other compensation on funds placed in real estate escrow accounts; or (2) assess fees in connection with such accounts. The preemption determination would provide much needed clarity to banks and other stakeholders. Comments are due 01/29/2026. The proposal may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-30/pdf/2025-23987.pdf Federal Register, Vol. 90, No. 246, 12/30/2025, 61093-61099.
OCC Proposes to Codify Real Estate Lending Escrow Account Rules.
OCC issued a proposed rule to codify longstanding powers of national banks and Federal savings associations (collectively, banks) to establish or maintain real estate lending escrow accounts and to exercise flexibility in making business judgment as to the terms and conditions of such accounts, including whether and to what extent to offer any compensation or to assess any fees related thereto. Comments are due 01/29/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-30/pdf/2025-23988.pdf Federal Register, Vol. 90, No. 246, 12/30/2025, 61099-61105.
OCC Seeks Comment on Guidance for Community Bank CRA Simplified Strategic Plan Process.
OCC issued proposed supplemental guidance on a simplified strategic plan process for community banks interested in requesting that OCC evaluate their Community Reinvestment Act (CRA) performance under a strategic plan. The proposed simplified strategic plan process is designed to make the strategic plan option more accessible to and less burdensome for community banks. Comments are due 02/20/2026. The proposed guidance may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-12-22/pdf/2025-23547.pdf. Federal Register, Vol. 90, No. 243, 12/22/2025, 59744-59764.
Regulatory Spotlight
OCC Seeks Comment on Information Collections.
OCC seeks comment regarding an information collection titled, Reg E-Prepaid Accounts. The Bureau of Consumer Financial Protection’s (CFPB’s) Prepaid Accounts final rules require financial institutions to make disclosures available to consumers before a consumer acquires a prepaid account. The rules also generally require issuers to submit to CFPB prepaid account agreements. Comments are due 02/17/2026. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2025-12-16/pdf/2025-22987.pdf. Federal Register, Vol. 90, No. 239, 12/16/2025, 58370-58371.
OCC seeks comment regarding an information collection titled, Securities Exchange Act Disclosure Rules. The Securities and Exchange Commission (SEC) is required by statute to collect certain information and documents from any firm that is required to register its stock with SEC. Federal law requires OCC to apply similar regulations to any national bank or Federal savings association similarly required to be registered with SEC. OCC reviews the information to ensure that a national bank or Federal savings association complies with Federal law and makes public all information required to be filed under the rule. Comments are due 02/17/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/ FR-2025-12-18/pdf/2025-23288.pdf Federal Register, Vol. 90, No. 241, 12/18/2025, 59322-59323.
OCC seeks comment regarding an information collection titled, Appraisals of Higher-Priced Mortgage Loans (HPMLs). The information collection relates to the Dodd-Frank Act, which added a new section to the Truth in Lending Act establishing special appraisal requirements for HPMLs. The collection of information is mandatory for creditors making HPMLs subject to 12 CFR part 34, subpart G. Comments are due 02/23/2026. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-12-23/pdf/2025-23731.pdf Federal Register, Vol. 90, No. 244, 12/23/2025, 60236-60237.
OCC seeks comment regarding an information collection titled, General Reporting and Recordkeeping Requirements by Savings Associations. Federal savings associations must comply with regulations which require them to establish prudent internal controls, so that examiners will have an accurate picture of their performance and condition. Federal savings associations use the required reports and records for internal management control purposes, and examiners use them to determine whether savings associations are operated safely, soundly, and in compliance with regulations. Comments are due 02/27/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-29/pdf/2025-23784. pdf Federal Register, Vol. 90, No. 245, 12/29/2025, 60856-60857.
OCC seeks comment regarding an information collection titled, Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery. The information collection provides OCC with a means to solicit qualitative stakeholder feedback in an efficient, timely manner. Comments are due 02/27/2026. The notice may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-12-29/pdf/2025-23792.pdf Federal Register, Vol. 90, No. 245, 12/29/2025, 60857-60858.
HUD Extends Compliance Dates.
The Department of Housing and Urban Development (HUD) issued a final rule to indefinitely delay the compliance date for its final rule titled, Strengthening the Section 184 Indian Housing Loan Guarantee Program. HUD seeks to first complete updates to a handbook which will provide necessary guidance for implementing the final rule. HUD will publish a document in the Federal Register to announce a new compliance date in the future. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-29/pdf/2025-23884.pdf. Federal Register, Vol. 90, No. 245, 12/29/2025, 60569-60570.
HUD issued a final rule to extend the compliance date for the HOME Investment Partnerships program, HOME-American Rescue Plan program, Housing Trust Fund, Housing Opportunities for Persons With AIDS, Community Development Block Grant program, Emergency Solution Grants, Continuum of Care programs, and programs funded through competitive processes. The extension is necessary to allow additional time for HUD to finalize system updates and for grantees to fully incorporate the new income and asset requirements into the programs. The compliance date has been extended to 01/01/2027. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-30/ pdf/2025-23989.pdf Federal Register, Vol. 90, No. 246, 12/30/2026, 61062-61063.
FEMA Issues Final Flood Hazard Determinations.
The Federal Emergency Management Agency (FEMA) announced flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where
Regulatory Spotlight
applicable, in the supporting Flood Insurance Study (FIS) reports have been made final for communities in Wisconsin The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in FEMA’s National Flood Insurance Program (NFIP). The date of 03/17/2026, has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-18/pdf/2025-23174.pdf Federal Register, Vol. 90, No. 241, 12/18/2025, 59149-59150.
FEMA Issues Final Changes in Flood Hazard Determinations.
New or modified Base (1-percent annual chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) have been made final for communities in Wisconsin, as listed in the table in the notice. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. Each LOMR was finalized as indicated in the table in the notice. The final notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-1218/pdf/2025-23168.pdf. Federal Register, Vol. 90, No. 241, 12/18/2025, 59150-59153.
FEMA Announces Changes in Flood Hazard Determinations.
FEMA issued a notice which lists communities in the states of Illinois, Indiana, and Minnesota, where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports is appropriate because of new scientific or technical data. The FIRM, and where applicable, portions of the FIS report, have been revised to reflect the flood hazard determinations through issuance of a Letter of Map Revision (LOMR), in accordance with federal regulations. The flood hazard determinations will be finalized on the dates listed in the table in the notice and revise the FIRM panels and FIS report in effect prior to the determination for the listed communities. From the date of the second publication of notification of the changes in a newspaper of local circulation, any person has 90 days in which to request through the community that the Deputy Associate Administrator for Insurance and Mitigation reconsider the changes. The flood hazard determination information may be changed during the 90-day period. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-18/pdf/2025-23169.pdf Federal Register, Vol. 90, No. 241, 12/18/2025, 59139-59142.
FEMA issued a notice which lists communities in Michigan, where the addition or modification of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or the regulatory floodway (hereinafter referred to as flood hazard determinations), as shown on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports is appropriate because of new scientific or technical data. The FIRM, and where applicable, portions of the FIS report, have been revised to reflect the flood hazard determinations through issuance of a Letter of Map Revision (LOMR), in accordance with federal regulations. The flood hazard determinations will be finalized on the dates listed in the table in the notice and revise the FIRM panels and FIS report in effect prior to the determination for the listed communities. From the date of the second publication of notification of the changes in a newspaper of local circulation, any person has 90 days in which to request through the community that the Deputy Associate Administrator for Insurance and Mitigation reconsider the changes. The flood hazard determination information may be changed during the 90-day period. The notice may be viewed at: https://www. govinfo.gov/content/pkg/FR-2025-12-18/pdf/2025-23170.pdf Federal Register, Vol. 90, No. 241, 12/18/2025, 59146-59149.
FinCEN Amends Effective Date of AML/CFT and SAR Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers.
The Financial Crimes Enforcement Network (FinCEN) issued a final rule to amend the Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Program and Suspicious Activity Report (SAR) Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers Rule to delay the effective date by two years. As part of the delay, FinCEN amended the date by which an investment adviser must develop and implement an AML/CFT program. The effective date of the final rule published in the Federal Register, 09/04/2024, is delayed until 01/01/2028. The final rule is effective 01/01/2028. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-02/pdf/202524184.pdf. Federal Register, Vol. 91, No. 1, 01/02/2026, 36-41.
Regulatory Spotlight
Treasury Issues Proposed Rule to Revise Offset Program.
The Department of the Treasury (Treasury) issued a proposed rule to revise its regulations regarding the Treasury Offset Program for several reasons, including to: restore statutory flexibility that was unnecessarily restricted; implement new authorities; eliminate repetitive and unnecessary language; reword certain provisions for clarity; and better organize the regulations for easier comprehension. Comments are due 02/23/2026. The proposed rule may be viewed at: https://www. govinfo.gov/content/pkg/FR-2025-12-23/pdf/2025-23704.pdf. Federal Register, Vol. 90, No. 244, 12/23/2025, 60034-60053.
IRS Issues Final Base Erosion and Anti-Abuse Tax Rules for Qualified Derivative Payments on Securities Lending Transactions.
The Internal Revenue Service (IRS) issued a final rule regarding the base erosion and anti-abuse tax imposed on certain large corporate taxpayers with respect to certain payments made to foreign related parties. The final rule relates to how qualified derivative payments with respect to securities lending transactions are determined and reported. The final rule is effective 12/17/2025. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-18/pdf/202523292.pdf Federal Register, Vol. 90, No. 241, 12/18/2025, 59046-59051.
IRS Issues Corrections to Excise Tax on Repurchase of Corporate Stock Rule.
IRS issued corrections to a final rule published in the Federal Register 11/24/2025, entitled Excise Tax on Repurchase of Corporate Stock. The final rule provides guidance regarding the application of the excise tax on repurchases of corporate stock made after 12/31/2022. See the final rule for the specific corrections. The corrections are effective 12/19/2025. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-19/pdf/2025-23460.pdf Federal Register, Vol. 90, No. 242, 12/19/2025, 59379-59380.
IRS Issues Proposed Rule on Car Loan Interest Deduction.
IRS issued a proposed rule regarding the deduction for certain taxpayers for an amount up to $10,000 of qualified passenger vehicle loan interest. The proposed rule also contains new information reporting requirements for certain persons who, in a trade or business, receive from any individual interest aggregating $600 or more for any calendar year on a specified passenger vehicle loan, including applicable penalties for failures to file information returns or furnish payee statements as required. Comments are due 02/02/2026. The proposed rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2026-01-02/pdf/2025-24154.pdf. Federal Register, Vol. 91, No. 1, 01/02/2026, 67-93.
IRS Proposes Amendments to Backup Withholding on Third Party Network Transactions.
IRS seeks comment regarding a proposed rule to amend the regulations governing backup withholding. The proposed amendments affect section 3406 of the Internal Revenue Code (Code). The proposed amendments would update the regulations under section 3406 to reflect the statutory changes made to section 3406(b) by the One, Big, Beautiful Bill Act. The proposed regulations would clarify that in the case of payments made in settlement of third party network transactions, the amount subject to withholding under section 3406 is determined with regard to the exception for de minimis payments by third party settlement organizations (TPSOs) in section 6050W(e) and the associated regulations. The changes affect TPSOs who make payments in settlement of third party network transactions. Comments are due 03/10/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-09/pdf/202600254.pdf Federal Register, Vol. 91, No. 6, 01/09/2026, 934-937.
IRS Seeks Comment on Information Collections.
IRS seeks comment regarding an information collection titled, Excise Taxes on Excess Inclusions of REMIC Residual Interests. The information collection is used by a real estate mortgage investment conduit (REMIC) to figure its excise tax liability under the Internal Revenue Code. IRS uses the information to determine the correct tax liability of the REMIC. Comments are due 02/10/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-12/ pdf/2025-22694.pdf Federal Register, Vol. 90, No. 237, 12/12/2025, 57816.
IRS seeks comment regarding an information collection titled, Estate and Gift Taxes; Qualified Disclaimers of Property. Internal Revenue Code section 2518 allows a person to disclaim an interest in property received by gift or inheritance. The interest is treated as if the disclaimant never received or transferred such interest for Federal gift tax purposes. A qualified disclaimer must be in writing and delivered to the transferor or trustee. IRS seeks comment regarding the
Regulatory Spotlight
burden associated with disclaiming an interest in property received by gift or inheritance. Comments are due 02/17/2026 The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-18/pdf/2025-23278.pdf Federal Register, Vol. 90, No. 241, 12/18/2025, 59323-59324.
IRS seeks comment regarding an information collection titled, Trump Account Election(s). Section 70204 of the One, Big, Beautiful Bill Act established “Trump Accounts,” a new type of tax-advantaged savings account for children. The accounts are for children under 18. IRS Forms 4547 and 8879-TA will be used to make the elections to establish the accounts. Comments are due 03/06/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-202601-05/pdf/2025-24257.pdf Federal Register, Vol. 91, No. 2, 01/05/2026, 329-330.
The Federal Housing Finance Agency (FHFA) issued a final rule on the housing goals for Fannie Mae and Freddie Mac (the Enterprises) for 2026 through 2028 as required by the Federal Housing Enterprises Financial Safety and Soundness Act. The final rule establishes benchmark levels for the housing goals for 2026 through 2028. The final rule replaces two area-based subgoals with one low-income areas subgoal, simplifies the goal determination process, clarifies inflation adjustments to maximum civil money penalties related to housing goals, and makes other technical changes. The final rule is effective 02/23/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-23/ pdf/2025-23746.pdf Federal Register, Vol. 90, No. 244, 12/23/2025, 59948-59967.
FHFA Adjusts Cap on Average Total Assets That Defines Community Financial Institutions.
FHFA adjusted the cap on average total assets that is used in determining whether a Federal Home Loan Bank (Bank) member qualifies as a “community financial institution” to $1,541,000,000, based on the annual percentage increase in the Consumer Price Index for all urban consumers, as published by the Department of Labor. The adjustment is effective 01/01/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-02/pdf/2025-24208.pdf Federal Register, Vol. 91, No. 1, 01/02/2026, 144.
SBA Revises Small Business Investment Company Regulations.
On 07/07/2025, the Small Business Administration (SBA) issued a proposed rule to revise the regulations for the Small Business Investment Company (SBIC) program to modify or remove from the Code of Federal Regulations (CFR) regulations that are obsolete, inefficient, or otherwise unnecessarily impede the licensing of SBICs and to remove certain barriers to investments in critical mineral extraction and processing and designated critical technologies. The final rule implements proposed regulatory changes as modified to address comments SBA received. The final rule is effective 02/02/2026. SBA issued a correction to the final rule. The correction affects sections 107.1700 and 107.1820 of the rule. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2026-01-02/pdf/2025-24232.pdf Federal Register, Vol. 91, No. 1, 01/02/2026, 1-9. The correction may be viewed at: https://www.govinfo.gov/content/pkg/FR2026-01-08/pdf/2026-00173.pdf. Federal Register, Vol. 91, No. 5, 01/08/2026, 555.
SBA Issues Peg Rate.
SBA publishes an interest rate called the Optional Peg Rate on a quarterly basis. The rate is a weighted average cost of money to the government for maturities similar to the average SBA direct loan. The rate may be used as a base rate for guaranteed fluctuating interest rate SBA loans. The rate will be 4.50 percent for the January-March quarter of FY 2026. Pursuant to 13 CFR 120.921(b), the maximum legal interest rate for any Third Party Lender’s commercial loan which funds any portion of the cost of a 504 project shall be 6% over the New York Prime rate or, if that exceeds the maximum interest rate permitted by the constitution or laws of a given State, the maximum interest rate will be the rate permitted by the constitution or laws of the given State. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR2025-12-22/pdf/2025-23607.pdf Federal Register, Vol. 90, No. 243, 12/22/2025, 59930.
Agencies Issue Technical Corrections and Confirm Finalization of OneRD Guaranteed Loan Regulation.
The Rural Business Cooperative Service (RBC), Rural Utilities Service (RUS), and Rural Housing Service (RHS) (collectively, the agencies) issued a final rule to make technical corrections to the OneRD Guaranteed Loan Regulation. On 09/30/2024, the agencies published a final rule for the OneRD Guarantee Loan Program to make necessary revisions to the policy and procedures that strengthened the oversight and management of the agencies’ programs. Following
Regulatory Spotlight
implementation of the final rule, the agencies found that corrections were necessary due to an incorrect definition of affiliate, and a section and sentence that were removed erroneously. The final rule corrects the final regulation. The final rule is effective 12/11/2025. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-11/ pdf/2025-22567.pdf. Federal Register, Vol. 90, No. 236, 12/11/2025, 57351-57352.
The Rural Business Cooperative Service (RBC), Rural Utilities Service (RUS), and Rural Housing Service (RHS) (collectively, the agencies) issued a final rule confirming the OneRD Guarantee Loan Regulation rule, published in the Federal Register on 09/30/2024, is final as published. The agencies also provided responses to the comments received. The final rule is effective and confirmed as of 11/29/2024. The final rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2025-12-12/pdf/2025-22660.pdf. Federal Register, Vol. 90, No. 237, 12/12/2025, 57675.
CFTC Revises Business Conduct and Swap Documentation Requirements.
The Commodity Futures Trading Commission (CFTC) issued a final rule to amend certain business conduct and documentation requirements applicable to swap dealers and major swap participants. The final rule provides exceptions to compliance with such requirements when executing swaps that are intended by the parties to be cleared contemporaneously with execution, or subject to prime broker arrangements that meet certain qualifying conditions, and make certain other changes discussed in the final rule. The adopted amendments supersede certain no-action positions issued by CFTC’s Market Participants Division (MPD), which CFTC expects MPD to terminate in due course. The final rule is effective 01/29/2026. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-30/ pdf/2025-23953.pdf Federal Register, Vol. 90, No. 246, 12/30/2025, 61226-61259.
CFTC Issues Schedule of Fees.
CFTC charges fees to designated contract markets and registered futures associations to recover the costs incurred by CFTC in the operation of its program of oversight of self-regulatory organization rule enforcement programs. Fees collected from each self-regulatory organization are deposited in the Department of the Treasury as miscellaneous receipts. The calculation of the fee amounts charged for 2023 by the notice is based upon an average of actual program costs incurred during prior fiscal years. Each self-regulatory organization is required to electronically remit the applicable fee on or before 02/13/2026. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-15/ pdf/2025-22807.pdf. Federal Register, Vol. 90, No. 238, 12/15/2025, 57899-57901.
CFTC Withdraws Guidance on Retail Commodity Transactions Involving Certain Digital Assets.
CFTC announced the withdrawal of a final interpretative guidance published in the Federal Register on 06/24/2020, entitled Retail Commodity Transactions Involving Certain Digital Assets. CFTC has withdrawn the guidance in order to reevaluate the guidance in light of further developments during the past five years in the means and methods deployed in the spot market for the purchase and sale of virtual currencies and the derivatives markets connected to such spot market. CFTC further determined the withdraw is appropriate based on the findings and recommendations for CFTC contained in the report of the President’s Working Group on Digital Asset Markets, Strengthening American Leadership in Digital Financial Technology, established by Executive Order 14178. The withdrawal is effective 12/10/2025. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-16/pdf/2025-22872.pdf Federal Register, Vol. 90, No. 239, 12/16/2025, 58149.
SEC Adopts Amendments to Rules and Forms.
The Securities and Exchange Commission (SEC) issued a final rule to adopt technical amendments to forms under the Securities Exchange Act to correct the address for the principal office of SEC. See the final rule for a list of forms affected by the amendments. The amendments are effective 12/11/2025. The final rule may be viewed at: https://www.govinfo. gov/content/pkg/FR-2025-12-11/pdf/2025-22583.pdf Federal Register, Vol. 90, No. 236, 12/11/2025, 57355-57356.
SEC issued a final rule to adopt amendments to correct certain errors and address outdated references in various rules under the Securities Act and the Investment Company Act, as well as in Form N-CEN as further described in the final rule. The final rule is effective 12/18/2025. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR2025-12-18/pdf/2025-23248.pdf Federal Register, Vol. 90, No. 241, 12/18/2025, 59043-59046.
SEC Amends Delegation of Authority to Division of Investment Management Director.
SEC issued a final rule to amend its Rules of Organization and Program Management to provide delegated authority to
Regulatory Spotlight
the Director of the Division of Investment Management to authorize the issuance of orders to grant, deny, and revoke confidential treatment for information in any registration application, report, or amendment thereto filed with SEC pursuant to any provision of the Investment Advisers Act. The final rule is effective 12/31/2025. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-31/pdf/2025-24127.pdf. Federal Register, Vol. 90, No. 247, 12/31/2025, 61299-61301.
NCUA Proposes Revisions to Corporate Credit Union Regulations.
The National Credit Union Administration (NCUA) issued a proposed rule to amend its regulations for corporate credit unions by removing the requirement that a corporate credit union’s asset and liability management committee (ALCO) must have at least one member who is also a member of the corporate credit union’s board of directors. The proposed rule would also remove filing requirements related to a corporate credit union’s annual report and any management letter or other report issued by its independent public accountant. Comments are due 02/09/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-11/pdf/2025-22487.pdf Federal Register, Vol. 90, No. 236, 12/11/2025, 57391-57393.
NCUA Proposes Amendments to Supervisory Committee Audits and Verifications.
NCUA issued a proposed rule to amend its regulations governing supervisory committee audits to eliminate unnecessary, redundant, and overly prescriptive provisions. The amendments are intended to reduce regulatory burden, increase operational flexibility for credit unions, and streamline the rules by removing requirements that are outdated or duplicative of other authorities. Comments are due 02/09/2026. The proposed rule may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2025-12-11/pdf/2025-22488.pdf Federal Register, Vol. 90, No. 236, 12/11/2025, 57393-57397.
NCUA Proposes to Remove
Appendices from Guidance.
NCUA issued a proposed rule to remove Appendix B to part 748, Guidance on Response Programs for Unauthorized Access to Member Information and Member Notice from the Code of Federal Regulations. NCUA instead would publish the content of Appendix B as guidance. Comments are due 02/09/2026. The proposed rule may be viewed at: https:// www.govinfo.gov/content/pkg/FR-2025-12-11/pdf/2025-22490.pdf Federal Register, Vol. 90, No. 236, 12/11/2025, 57397-57399.
NCUA issued a proposed rule to remove Appendix A to part 748, Guidelines for Safeguarding Member Information, from the Code of Federal Regulations. NCUA would instead publish the contents as a Letter to Credit Unions. Comments are due 02/09/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-11/pdf/202522489.pdf Federal Register, Vol. 90, No. 236, 12/11/2025, 57399-57401.
NCUA Proposes Revises to Advertising of Insured Status Rules.
NCUA issued a proposed rule to streamline its regulations governing advertising and the notice of insured status. The proposed rule would eliminate provisions concerning the official advertising statement. The action is undertaken to reduce regulatory complexity. The proposed rule would not amend requirements related to displaying the official sign. Comments are due 02/27/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202512-29/pdf/2025-23854.pdf Federal Register, Vol. 90, No. 245, 12/29/2025, 60588-60591.
NCUA Proposes to Amend Catastrophic Act Reporting Requirements.
NCUA issued a proposed rule to amend the requirements for federally insured credit unions (FICUs) to report catastrophic acts to NCUA. NCUA expects the proposed rule to reduce the compliance burden and allow FICUs to focus resources on recovery and core functions without compromising safety and soundness. Comments are due 02/27/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2025-12-29/pdf/2025-23856.pdf Federal Register, Vol. 90, No. 245, 12/29/2025, 60591-60594.
NCUA Proposes to Remove Regulations Related to Making Loans to Other Credit Unions.
NCUA seeks comment on a proposal to remove the regulations related to approval and policies on making loans to other credit unions. Credit unions would remain subject to statutory requirements related to making loans to credit unions. Comments are due 02/27/2026. The proposed rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-202512-29/pdf/2025-23855.pdf. Federal Register, Vol. 90, No. 245, 12/29/2025, 60583-60585.
Regulatory Spotlight
NCUA Proposes to Remove Segregated Deposit and Collateral Requirements in Surety and Guarantor Setting.
NCUA issued a proposed rule to remove the segregated deposit and collateral requirements when a federally insured credit union (FICU) acts as a surety and guarantor. FICUs would remain subject to the other requirements regarding surety and guaranty agreements. Comments are due 02/27/2026. The notice may be viewed at: https://www.govinfo.gov/ content/pkg/FR-2025-12-29/pdf/2025-23857.pdf. Federal Register, Vol. 90, No. 245, 12/29/2025, 60586-60588.
Compliance Notes
President Trump posted on Truth Social that effective 01/20/026, he is calling for a one-year cap on credit card interest rates of 10%. WBA joined a letter with all other state bankers association addressed to members of Congress opposing the rate cap. The President’s post may be viewed at: https://truthsocial.com/@realDonaldTrump/ posts/115868132990949589. The joint letter may be viewed at: https://www.aba.com/advocacy/policy-analysis/letterto-congress-opposing-10-percent-credit-card-interest
Federal Reserve Financial Services announced new actions to better support the circulation of pennies for commercial activity. Beginning January 14th, the Federal Reserve resumed accepting pennies from banks and credit unions at commercial coin distribution locations providing services under arrangements with the Federal Reserve that were previously suspended. The announcement may be viewed at: https://www.frbservices.org/news/pressreleases/01082026-penny-deposits-update
Travis Hill has been sworn in as the 23rd Chairman of FDIC Chairman Hill has served as Acting Chairman of the FDIC Board since 01/20/2025, and previously as Vice Chairman since 01/05/2023. Prior to joining the FDIC Board, Chairman Hill served in various roles at FDIC; the United States Senate Committee on Banking, Housing, and Urban Affairs; and Regions Financial Corporation. He received a Bachelor of Science from Duke University, where he studied economics and political science, and a Juris Doctor from Georgetown University Law Center. The announcement may be viewed at: https://www.fdic.gov/news/press-releases/2026/travis-hill-sworn-23rd-chairman-fdic
FinCEN issued an alert urging financial institutions to identify and report fraud associated with Federal child nutrition programs, particularly past and ongoing suspicious activity potentially related to fraudsters in Minnesota. FinCEN requests that financial institutions reference the Alert in SAR field 2 (Filing Institution Note to FinCEN) and the narrative by including the key term “FIN-2026-MNFRAUD” and select SAR field 34(z) (Fraud – Other) and include the term “Federal Child Nutrition Programs” in the text box. FinCEN alert FIN-2026-Alert001 may be viewed at: https://www. fincen.gov/system/files/2026-01/FinCEN-Alert-Federal-Child-Nutrition-Programs.pdf
The agencies released the 2025 Shared National Credit (SNC) Report that indicates credit risk associated with large, syndicated bank loans remains moderate. Credit risk trends continue to reflect the effects of borrowers’ ability to manage higher interest expenses and other macroeconomic factors. The 2025 report reflects the examination of SNC loans originated on or before 06/30/2025. The reviews focused on leveraged loans and stressed borrowers from various industry sectors and assessed aggregate loan commitments of $100 million or more that are shared by multiple regulated financial institutions. The percentage of loans that deserve management’s close attention (“non-pass” loans rated “special mention” and “classified”) decreased to 8.6 percent of total commitments from 9.1 percent in 2024. The decline is primarily due to growth in new commitments rather than an underlying improvement in credit quality. U.S. banks hold 45 percent of all SNC commitments. However, they only hold 22 percent of non-pass loans, down slightly from the prior year. Nearly half of total SNC commitments are leveraged, and leveraged loans comprise 81 percent of non-pass loans. The report may be viewed at: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20260112a.htm
FDIC has enhanced its website to increase transparency into the marketing and sale process of failing financial institutions and has posted templates of contractual agreements for transactions to facilitate review in advance of any acquisition opportunities. FDIC made the revisions as it has been working across a number of areas to improve the bidding process for failed institutions and incorporate lessons learned from the 2023 bank failures. More information may be viewed at: https://www.fdic.gov/news/financial-institution-letters/2025/fdic-provides-additional-transparencyregarding-marketing
January
14 Midwest Economic Forecast Forum
Virtual – multiple registration options available 1/81/30 Understanding Bank Performance Virtual Series
Eight-part webinar series – $1,000/attendee
9 Online Workshop: Credit Analysis Basics
Virtual full day – $275/attendee
20 Community Bankers for Compliance – Session I
Virtual half-day – $1,700 membership/1st attendee
29 Branch Manager Boot Camp: Session I
Four-part series, virtual half days – $900/attendee
