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.

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.

Federal agencies warned that lending to non-work-authorized individuals presents elevated credit risks because their ability to generate income and maintain employment may be subject to greater uncertainty.

The Federal Reserve is poised to issue a final rule adjusting requirements under the Community Reinvestment Act. It’s unclear if the Fed’s final rule will be issued jointly with the OCC and FDIC.

As Basel III approaches the end of what may be its last notice and comment period, industry stakeholders work to secure last-minute policy changes.

CFPB moves Section 1071 proposal forward; CFPB is looking to hire attorneys; FDIC appoints former CFPB official; DOJ dismissing reverse redlining lawsuit.

FDIC examiners said most TILA issues involved failure to provide consumers with disclosures. Issues with the Electronic Fund Transfers Act and the Flood Disaster Protection Act were also common.

Conservative critics of the housing-finance system say preserving the status quo is more likely than a release from conservatorship or a government monopoly.