Let’s recap what has happened in 2025 on three different fronts: HMDA, fair lending, and the Community Reinvestment Act (CRA). I count seven important developments, listed in no particular order.
1. The 2024 HMDA Snapshot data were released in July 2025. A couple of observations:
- Generally, high interest rates led to a significantly lower volume of refinancing activity in 2024 compared to the pandemic-driven peak in 2020. The number and volume of refinancing loans declined by 87.7% and 87.3%, respectively, between 2020 and 2023.
- However, from this depressed 2023 baseline, refinancing activity rebounded modestly in 2024, with the number and volume of refinancing loans increasing by 35.3% and 49.9%, respectively.
- There was also a smaller decline (34.4%) in the number of home purchase loans between 2021 and 2024.
2. Evolving Landscape for Redlining Enforcement
With the change in federal administration in January 2025, the redlining risk environment has become more complex and less centralized. Federal enforcement remains an important component of risk, but it is no longer the sole driver. The DOJ’s Combating Redlining Initiative resulted in numerous enforcement actions during the 2021–2024 period. However, in 2025, the DOJ did not announce any public redlining enforcement actions.
In contrast, state attorneys general, fair housing organizations, and private litigants have increasingly initiated investigations using HMDA data, community partnerships, and geographic analyses. At the same time, supervisory expectations continue to emphasize proactive identification of service gaps and well-documented assessments of market coverage.
3. Federal Banking Agencies and NCUA Revise Fair Lending Examination Guidance on Disparate Impact
NCUA citation
In 2025, the federal banking agencies issued revisions to fair lending examination guides, particularly as they relate to disparate impact analysis. These changes made clear that at least in the short run federal regulators will not be scrutinizing facially neutral policies and practices.
4. CFPB Proposed Rule Revising Regulation B (ECOA)
In 2025, the CFPB issued a proposed rule revising Regulation B, signaling potential changes in how ECOA is interpreted and enforced. Among other changes, the CFPB proposes to adopt the interpretation that ECOA does not authorize disparate impact liability. The proposed rule also limits what can be considered “discouragement” of an application.
5. Rescission of the 2023 CRA Final Rule by the Banking Agencies
In a major regulatory shift, the OCC, FDIC, and Federal Reserve rescinded the 2023 CRA Final Rule in 2025. As a result:
- The prior CRA framework remains in effect
- Institutions face renewed uncertainty regarding long-term CRA modernization
- CRA compliance planning has shifted back toward legacy performance tests and assessment area concepts
This rescission significantly altered expectations that had been set following the 2023 rulemaking.
6. CFPB Proposed Rule Narrowing Dodd-Frank Section 1071 Requirements
In 2025, the CFPB issued a new proposed rule revising its 2023 Final Rule implementing Dodd-Frank Section 1071 (small business lending data collection). The proposal would:
- Narrow certain reporting requirements
- Modify data points and coverage thresholds
- Set the first compliance date for the largest institutions at July 1, 2026
7. HMDA Filing Instruction Guide (FIG) Updates Continue
The HMDA Filing Instruction Guide continues to evolve:
- The 2026 FIG remains fully web-based, no longer distributed as a standalone PDF
- Institutions increasingly rely on dynamic online updates rather than static annual guidance
Ongoing FIG changes underscore the need for continuous monitoring of HMDA technical requirements.
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