There has been a lot of regulatory activity affecting fair lending, CRA, and mortgage lending over the past six months or so. The CFPB, for example, describes its current agenda as seeking to reduce regulatory burdens and remove unnecessary regulation. Much of this activity has occurred in the context of a broader federal deregulatory effort. I can understand if you missed some of this activity, as the pace of deregulation has been swift, and the Federal Register notices have been frequent and lengthy.
With that in mind, here is a brief refresher on six developments that compliance professionals should have on their radar. Let’s start with the CFPB rulemaking agenda, then shift to the banking agencies, and then finish with the Census Bureau proposed rule.
1. ECOA and disparate impact
In April 2026, the CFPB issued a final rule amending Regulation B, which implements the Equal Credit Opportunity Act (ECOA). Among other changes, the CFPB removed the “effects test” from Regulation B and stated that ECOA does not provide for disparate-impact liability. The rule became effective July 21, 2026.
This is a significant change in fair lending regulation. However, ECOA continues to prohibit discrimination on a prohibited basis, and financial institutions may continue to analyze demographic outcomes as part of their fair lending and CRA programs. In fact, several compliance professionals I’ve spoken to continue to analyze disparate impact as they did before changes were made.
2. Section 1071 has been substantially narrowed
The CFPB has also revised its small business lending data collection rule implementing Section 1071 of the Dodd-Frank Act. The new rule raises the threshold for a covered financial institution from 100 to 1,000 covered originations and makes other changes that reduce the number of transactions and data points covered. The CFPB also replaced the previous tiered compliance schedule with a single compliance date of January 1, 2028.
3. Broader CFPB rulemaking may be coming
The CFPB’s 2026 regulatory agenda shows that additional changes are under consideration. One example is the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule. The issue is currently at the “pre-rule” stage, with the CFPB evaluating whether additional adjustments to the ATR requirements and QM definitions are warranted.
4. OCC and FDIC are proposing changes to CRA
Now let’s shift to the prudential bank regulators. The OCC and FDIC have proposed substantial changes to their CRA regulations. Among the changes are higher asset thresholds for small and intermediate banks, which would result in fewer banks being subject to CRA data collection and reporting requirements. The proposal would also focus retail lending evaluations on a bank’s major product lines. It includes additional changes involving community development activities and CRA public files. The agencies have identified reducing regulatory burden, particularly for community banks, as one objective of the proposal.
5. Some banks will be examined less frequently
Federal banking regulators have also taken steps to reduce the frequency of examinations for some banks. The OCC, Federal Reserve, and FDIC recently expanded eligibility for an 18-month on-site examination cycle by raising the applicable asset threshold from $3 billion to $6 billion.
Relatedly, in 2025, the FDIC changed the frequency of consumer compliance and CRA examinations for certain FDIC-supervised institutions. Qualifying institutions with between $350 million and $3 billion in assets may receive a joint consumer compliance and CRA examination approximately once every five years, while qualifying institutions with less than $350 million in assets may be examined as infrequently as once every 78 months (6.5 years). These institutions remain subject to a midcycle review between examinations.
6. Census Bureau is reconsidering demographic questions
Lastly, this month, the Census Bureau proposed removing questions about race and ethnicity from the short-form decennial census questionnaire and other questionnaires used to enumerate the population.
This does not mean that the Census Bureau would stop collecting race and ethnicity information altogether. The proposal specifically does not restrict demographic questions on the American Community Survey (ACS) or other surveys not used for enumeration.
Nevertheless, the proposal is worth watching because Census demographic data plays an important role in geographic fair lending and CRA analysis. If finalized, the changes could affect how easily data analysts can determine which census tracts are majority-minority census tracts (MMCTs).
Conclusion
Taken together, these developments show how quickly the regulatory landscape is changing. Compliance professionals should continue to follow both finalized changes and proposals that could affect fair lending and CRA compliance in the months and years ahead. Contact the team at ComplianceTech today to learn how we can help you stay up to date on the issues that matter to you.