In this episode of Payments Pros, host Carlin McCrory discusses a recent consent order between Patriot Bank and the Office of the Comptroller of the Currency (OCC) following a $27 million loss. The order addresses unsafe practices and legal violations, focusing on prepaid card program oversight. Key areas of concern include the need for a strategic plan, evaluation of internal operations, and staffing requirements. The bank must also enhance its Customer Identification Program (CIP) and ensure adequate monitoring of third-party program managers.

On March 28, the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (together, the federal banking agencies) announced their intent to rescind the 2023 Community Reinvestment Act (CRA) final rule and reinstate the previous CRA framework. This decision comes in light of pending litigation in the Fifth Circuit by various banking trade associations contesting the rules by alleging regulatory overreach. The agencies stated they will continue to work together to promote a consistent regulatory approach to implementation of the CRA.

On March 28, the Consumer Financial Protection Bureau (CFPB or Bureau) was ordered by the U.S. District Court for the District of Columbia to reinstate its employees and resume its operations. This decision comes after the CFPB allegedly attempted to shut down its activities, leading to the National Treasury Employees Union (NTEU) filing a lawsuit questioning the legality of the shutdown. The court held that the CFPB’s actions to halt its operations and terminate its employees were not consistent with its statutory obligations under Title X of Dodd-Frank. As a result, the court granted a preliminary injunction requiring the CFPB to reverse its shutdown efforts, reinstate its workforce, and continue performing its statutory duties. On March 29, the Bureau filed its notice of appeal of the preliminary injunction.

Last Friday, the Federal Deposit Insurance Corporation (FDIC) announced the rescission of Financial Institution Letter (FIL-16-2022) and issued new guidance clarifying the process for FDIC-supervised institutions to engage in crypto-related activities. The new Financial Institution Letter (FIL-7-2025) represents a 180 degree turn from the prior Chairman’s position, which required prior notification and relevant information by banks seeking to engage in crypto-related activities.

On March 26, the U.S. Court of Appeals for the Fourth Circuit reversed a district court’s decision holding a credit union liable for a wire transfer in a business email compromise scam case where the credit union lacked “actual knowledge” of the mismatch between the account number and beneficiary.

In this episode of FCRA Focus, host Dave Gettings is joined by Cindy Hanson, Scott Kelly, and Tim St. George, partners in Troutman Pepper Locke’s Consumer Financial Services Practice Group, to discuss the most impactful regulatory issues in credit reporting from 2024 and their potential impact in 2025. The discussion covers developments in background screening, the Consumer Financial Protection Bureau’s advisory opinions on reasonable procedures, and proposed rulemaking related to medical debt. The group also explores emerging litigation trends and the impact of recent regulatory activities on industry standards.

In a surprising turn of events, the Consumer Financial Protection Bureau (CFPB or Bureau) and Townstone Financial, Inc. (Townstone) have jointly moved to vacate the Stipulated Final Judgment and Order previously entered in the CFPB’s enforcement action against the mortgage lender alleging redlining practices. This motion, filed on March 26, 2025, comes after significant allegations by the CFPB regarding the Bureau’s own handling of the case, which began in 2020 under the first Trump administration and continued under the Biden administration.

In a significant policy shift under the Trump administration, the new Federal Housing Finance Agency (FHFA) Director Bill Pulte issued an order on March 25, 2025 terminating special purpose credit programs (SPCPs) supported by the government sponsored enterprises, Fannie Mae and Freddie Mac (together, the GSEs). This directive, effective immediately, will significantly impact banks with mortgage-based SPCPs.

In this episode of The Consumer Finance Podcast, Chris Willis is joined by Joe Reilly, a partner in Troutman Pepper Locke’s Consumer Financial Services Practice Group, to discuss the events of the first two months of the new Trump administration. They provide a comprehensive overview of the current status of the Consumer Financial Protection Bureau (CFPB), its litigation matters, and its rulemaking efforts. Chris and Joe discuss the significant changes at the CFPB, including the appointment of new acting directors, the impact of the administration’s directives on CFPB employees, and the ensuing legal battles. They also explore the status of key rulemakings, such as the 1071 Small Business Data Collection Rule, the overdraft rule, and the credit card late fee rule, offering insights into the potential future of these regulations. Tune in to stay informed about the latest developments in consumer financial services regulation and what they mean for the industry.