Russell Vought is expected to remain at the bureau as a senior adviser following the conclusion of his tenure under terms set by the Federal Vacancies Reform Act.
Rise Economy, a California-based nonprofit, has threatened to take legal action to block the OCC and FDIC proposal to revise Community Reinvestment Act requirements.
California’s new Business and Consumer Services Agency, led by former CFPB Director Rohit Chopra, will crack down on corrupt practices, lift small businesses and assist with state enforcement efforts.
Mark Paoletta said under Trump-era leadership, the bureau is developing targeted educational materials for consumers and is working to become a source of “unbiased objective information” consumers can trust.
Chris Willis, a partner at the law firm of Troutman Pepper Locke, said any credit risk identified in the new guidance from federal regulators is likely to have already been considered by lenders.
The proposal would retain much of the 1995 regulatory framework while making changes to asset size thresholds and narrowing the range of retail banking services subject to CRA standards.
Adoption of AI in underwriting could significantly reduce refinancing costs for small loans, eroding the prepayment protection low-loan balances have typically provided.