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Governor Signs New Law Affecting Foreclosures of Subordinate Mortgages Encumbering Residential Real Property
On June 30, 2025, Governor Newsom signed Assembly Bill 130 into law as part of a broader state budget package. The bill contains a number of provisions aimed at addressing housing affordability. However, of particular importance to BCG Members, it includes provisions affecting foreclosure laws in California. These changes are effective immediately.
South Carolina Federal District Court Case Addresses EFTA’s Scope
Historically, courts have held that wire transfers are not subject to the Electronic Funds Transfer Act (EFTA). However, some recent case law has begun to question the extent to which judicial precedent on this topic applies to modern technology. Recently, a plaintiff filed an action in a South Carolina federal district court alleging that Bank of America violated the EFTA with regard to the bank’s handling of allegedly unauthorized wire transfers that were initiated from the plaintiff’s account through the bank’s online banking platform and mobile banking app. Walling by Walling v. Bank of America, N.A., 2025 US Dist. LEXIS 93399 (Dist. S.C. May 7, 2025).
CFPB Formally Extends Compliance Dates for Section 1071 Rule (Again!)
As previously reported by BCG, the Section 1071 Small Business Lending Data Collection (SBLDC) Rule (codified in 12 FR Part 1002, Subpart B) has survived various legal challenges by trade associations and lenders. However, the SBLDC Rule came under fire again in 2025, this time from the CFPB itself (the agency that originally issued the rule). As discussed below, the compliance dates for the SBLDC Rule have again been delayed.
NCUA Updates CECL Tool
Late last month, the National Credit Union Administration (NCUA) updated its Simplified CECL Tool to provide the latest life-of-loan (or Weighted Average Remaining Maturity) factors. For credit unions currently using the Simplified CECL Tool, the June 2025 release facilitates calculating the credit loss expense on loans and lease for the period ending June 30, 2025.
President Signs Resolution Overturning OCC 2024 Merger Rule
On September 25, 2024, the OCC published a final rule addressing its rules and policies on bank mergers and related transactions (the “2024 Merger FR”). The 2024 Merger FR addressed the rules and regulations applicable to applications under the Bank Merger Act (BMA). As previously reported by BCG on May 15, 2025, the OCC published an interim final rule that rescinds the 2024 Merger FR (the “2025 IFR”). The 2025 IFR restored the OCC’s streamlined application and expedited procedures for evaluating applications under the BMA.
List of Distressed or Underserved Non-MSA Middle-income Geographies Updated
Under the Community Reinvestment Act (“CRA”) regulations, the definition of “community development” includes, among others, activities that revitalize and stabilize areas the banking agencies have designated as “distressed or underserved nonmetropolitan middle-income geographies.” The term “nonmetropolitan” simply means an area outside of a metropolitan statistical area (“MSA”) and is intended to refer to rural areas. Each year, the banking agencies (i.e., the FRB, FDIC, and OCC) use certain objective criteria in determining whether a middle-income geography (that is, a census tract) qualifies as either distressed or underserved and then publish a list of these census tracts.
Table of Contents
CONSUMER FINANCE
BANKING OPERATIONS & FINTECH
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South Carolina Federal District Court Case Addresses EFTA’s Scope
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Federal Banking Agencies Seek Comment on Mitigating Payments Fraud
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FinCEN Director Discusses Principles for Modernization of BSA Filings
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Agencies Issue CIP Exemption Order Allowing Banks to Obtain TINs From Third Parties
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FinCEN Issues Orders Against Mexican Financial Institutions to Counter Fentanyl
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CFPB Asks Court to Repeal Section 1033 Rule (Open Banking and Personal Financial Data Rights)
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Sixth Circuit Court of Appeals Reverses Overdraft Ruling that Favored Bank
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Trump’s One Big Beautiful Bill Creates New Tax on Remittance Transfers
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Dollar Thresholds for 1099-MISC and 1099-NEC Reporting to Change
COMMERCIAL LENDING
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CFPB Formally Extends Compliance Dates for Section 1071 Rule (Again!)
CREDIT UNIONS
CORPORATE GOVERNANCE
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President Signs Resolution Overturning OCC 2024 Merger Rule
CRA/HMDA Corner
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List of Distressed or Underserved Non-MSA Middle-income Geographies Updated
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