Fair Lending

In April 2025, President Trump issued an executive order (EO 14281) directing federal agencies to eliminate disparate-impact liability "to the maximum degree possible." In response to that EO, the OCC, FDIC, CFPB, and HUD have stepped away from disparate impact claims: The OCC and FDIC removed disparate impact from their fair-lending examination manuals. HUD proposed to remove its disparate impact rule found at 24 C.F.R. Part 100, and instead, rely on court interpretations of disparate impact. The CFPB finalized a rule amending Regulation B to remove the "effects test" or disparate impact...

On May 1, 2026, the CFPB published its final rule implementing section 1071 of the Dodd-Frank Act, the small business lending data collection and reporting rule (Final Rule or Rule). The rule is finalized largely as proposed, except that the final rule removes disaggregated data fields for race/ethnicity. While the final rule is effective June 30, 2026, the compliance date is January 1, 2028. This memorandum provides a brief overview of the Rule. This rule amends the 2023 small business lending data rule, which did not go into effect due to litigation and a change in administration. Under the...

We advise banks, fintechs, mortgage companies and others on regulatory compliance across the full spectrum of consumer protection and prudential requirements. Our regulatory practice covers consumer compliance (TILA, RESPA, UDAP/UDAAP, FCRA, HMDA, fair lending), safety and soundness issues, payments rules, and regulatory change management. We help clients understand the impact of new regulations, build compliance programs, and maintain comprehensive regulatory inventories. Services provided by the Regulation & Compliance practice include: Capital Analysis: We assess treatment of assets,...

Insurance companies that participate in federally regulated banking and housing activities operate at the intersection of state insurance regulation and federal financial regulation. We advise insurance company clients on the federal banking, housing finance, and consumer protection rules that apply to those activities, including their obligations under federal supervisory frameworks. Our work spans regulatory advice, comment letters and legislative advocacy on federal proposals affecting the sector, and transaction support for activities that touch federally regulated functions. Services we...

Katie Wechsler heads the firm's consumer and housing finance practice. She represents financial institutions and trade associations before Congress and the federal regulatory agencies, with a particular focus on federal consumer financial laws, mortgage lending and servicing, and the implementation and supervision of consumer financial protection requirements. Katie has developed a detailed understanding of the CFPB's authority, including the implementation of section 1033 (personal financial data rights) and section 1071 (small business data collection). Katie previously served as counsel...

Nancy Worth specializes in matters involving the federal financial regulatory agencies, with a particular focus on federal consumer law and fair lending. She advises on supervision and compliance matters relating to mortgages, credit cards, and other lending products, and on examination guidance, applications, reports of examination, enforcement actions, and consumer complaints. Her practice extends to commenting on agency review of legislation and Consumer Financial Protection Bureau regulations. Nancy previously served as Special Counsel for the Office of the Comptroller of the Currency...