What's new? Recent DoL Opinions: Fair Labor Standards Act

Recent guidance from the Department of Labor provides clarity on Fair Labor Standards Act (FLSA) policies regarding wage and hour requirements, dual roles, bonus structures, and meal periods. The letters act as official interpretations of governing statutes and regulations rather than shifts in policy.

For more details, see our section in the Gold Book.

What's New? OCC Ruling on Preemption of State Laws and Lending Escrow Accounts

On May 15, 2026, the Office of the Comptroller of the Currency (OCC) issued two rulings:

One rule confirms that federal law preempts state mandates requiring national banks to pay interest on mortgage escrow accounts. This determination covers 14 jurisdictions, including New York, and establishes that the decision to pay interest or assess fees is a discretionary business judgment for each bank. By prioritizing federal standards over varying state laws, the OCC aims to provide legal clarity and foster a more efficient national mortgage market.

The second rule confirms that federal law preempts state mandates requiring national banks to pay interest on mortgage escrow accounts. This determination applies to 14 jurisdictions, including New York and California, and reaffirms that banks have the discretionary authority to set their own terms for interest and service fees. By removing these state-level restrictions, the OCC aims to eliminate regulatory ambiguity and foster a more efficient national mortgage market through a uniform set of federal rules.

See our section in the Gold Book.

What's New? Interest on Mortgage Escrow Accounts in NY

On May 5, 2026, the United States Court of Appeals for the Second Circuit ruled that New York's General Obligations Law §5-601 requiring a 2% interest rate on mortgage escrow accounts is preempted by federal law because it significantly interferes with national banking powers. The court concluded that such mandates limit a bank's broad authority to set mortgage terms and manage risk-mitigation tools efficiently.

See our section in the Gold Book.

What's New? NY employers prohibited from considering credit history in hiring decisions

Effective April 18, 2026, New York State has implemented a broad ban on using consumer credit history for most employment decisions, including hiring, compensation, and promotions. This legislative shift aims to eliminate barriers tied to financial hardship and redirect the focus of recruitment toward merit-based hiring rather than an applicant's past financial obligations. It is critical to note that the burden of proof now lies with the employer to justify any specific exceptions—such as roles requiring security clearances—before credit information can be accessed.

For more details see our updated section in the Gold Book.

What's New? Managing Risk Associated with TPSPs

    The New York State Department of Financial Services issued a letter on October 21, 2025 to assist regulated entities in managing the evolving cybersecurity risks associated with Third-Party Service Providers (TPSPs) that have access to sensitive nonpublic information. The guidances emphasizes a proactive, risk-based approach that spans the entire relationship lifecycle, including initial due diligence, robust contracting, continuous monitoring, and secure termination. Senior Governing Bodies and Senior Officers must remain engaged in oversight, as they are ultimately responsible for compliance and cannot delegate regulatory obligations to outside vendors. To protect data integrity, NYDFS recommends specific contractual safeguards such as multi-factor authentication, data encryption, and mandatory notification of cybersecurity incidents.

See the letter here and our section in the Gold Book.

What's New? BNPL Loan Protections in NY

Governor Kathy Hochul announced, on February 23, 2026, proposed regulations to establish a comprehensive licensing and supervision framework for all Buy Now, Pay Later (BNPL) providers operating in New York. These rules are specifically designed to prevent consumer debt spirals by prohibiting excessive junk fees and placing strict limits on late payment penalties. The regulations also mandate transparent loan disclosures regarding credit reporting, establish standards for the timely resolution of disputes, and provide strong protections for consumer data. Following a public comment period, this new oversight framework is scheduled to take effect 180 days after its official adoption.

For more information on the proposed rule, see our section in the Gold Book.

What's New? SBA Revised Citizenship and Residency Loan Requirements

Effective March 1, 2026, the Small Business Administration (SBA) implemented significant updates to the citizenship and residency requirements for its 7(a) and 504 loan programs. Under this new policy, 100% of a small business applicant's direct and indirect owners must be U.S. Citizens or U.S. Nationals. Furthermore, all owners are now required to maintain their principal residence within the United States, its territories, or possessions. These changes officially rescind previous exceptions for minority foreign ownership and clarify that Legal Permanent Residents (LPRs) are no longer eligible to hold any ownership interest in a borrowing entity. Business owners and lenders with questions regarding these stricter eligibility standards should contact their local SBA Field Office for guidance.

For details see the policy notice and our section in the Gold Book.

What's New? Fee for Receiving Paper Statements is Constitutionally Protected

The United States District Court  for the Eastern District of New York has ruled that New York General Business Law Section 399-zzz is unconstitutional. This statute previously prohibited business entities from charging consumers an additional fee for receiving paper billing statements. Following this decision, banks have stronger legal grounds to defend the imposition of paper statement fees in New York, though operational caution is still advised due to the potential for appeals.

For more details, see our section in the Gold Book.

What's new? NYC Debt Collection Restrictions and Requirements

The New York City Department of Consumer and Worker Protection (DCWP) has adopted Amended Rules governing debt collection from NYC consumers, effective September 1, 2026. These rules introduce significant changes for financial institutions, as they expand the definition of "debt collector" to include original creditors and impose strict operational requirements.

For more details, see our section in the Gold Book.

What's New? FinCEN issues final rule reducing requirements for Beneficial Ownership reporting

On February 13, 2026, FinCEN issued a final rule that grants exceptive relief from the requirements in 31 C.F.R. § 1010.230(b), which previously required covered financial institutions to identify and verify the beneficial owners of legal entity customers at each new account opening. The ruling changes these requirements by allowing institutions to limit identification and verification to three broad scenarios instead of every time an account is opened.

For details see the final rule and our section in the Gold Book.

What's New? FDIC Final Rule Streamlines Branch Openings and Relocations

The Federal Deposit Insurance Corporation (FDIC) has adopted a Final Rule to modernize the process for insured State nonmember banks to establish branches or relocate offices. Effective February 27, 2026, these changes are designed to reduce regulatory burdens, improve speed, and provide greater certainty for banks.

See the full publication and our section in the Gold Book.

What's new? FDIC Signage Rules: Streamlining Digital and ATM Disclosures

The Federal Deposit Insurance Corporation (FDIC) has issued a final rule amending signage requirements for digital deposit-taking channels and automated teller machines (ATMs). This update is designed to offer greater flexibility to insured depository institutions (IDIs) while ensuring consumers clearly understand when their funds are protected by federal deposit insurance.

The changes aim to reduce the administrative burden on banks—estimated to save the industry over $10.2 million in implementation costs—while minimizing consumer confusion.

See the full rule here and our updated section in the Gold Book.

What's New? New York State requires lenders to honor payments according to their specific instructions

Recent legislative changes in New York State now mandate that mortgage lenders honor payments submitted according to their specific instructions. Under this updated law, financial institutions are strictly required to accept funds delivered to the designated location if the borrower followed the directions provided in a payoff statement. This measure ensures that homeowners can reliably settle their debt obligations without the risk of their payments being rejected unexpectedly. By enforcing compliance with these official documents, the state aims to provide greater legal protection and transparency for consumers during the loan satisfaction process. This development effectively prevents lenders from disregarding transactions that align with their own documented requirements.

For more details see the full amendment.

What's New? Updated thresholds for Regulations M, V, and Z

Effective January 1, 2026, five final rules issued by the CFPB will increase various regulatory dollar thresholds for Regulations M, V, and Z. These updates include higher loan amount triggers for high-cost mortgages and Qualified Mortgages, as well as an increases to exemption thresholds. For more information, see the corresponding releases:

Regulation Z (Annual Threshold Adjustments)

Higher-priced Mortgage Exemption

Regulation Z (TILA)

Regulation M

Regulation V

What's New? OCC proposes new strategic plan for community banks to meet CRA requirements

Last month, the Office of the Comptroller of the Currency (OCC) introduced a proposed simplified strategic plan to help community banks more efficiently meet Community Reinvestment Act (CRA) requirements while reducing their regulatory burden. The public is invited to provide comments on the proposal for a 60-day period, beginning December 17 2025. For more info, see the OCC News Release 2025-129.

What's New? IRS and OCC Recent Updates!

The IRS and Treasury Department have published guidance and announced plans to issue regulations for “Trump Accounts,” which are a new type of individual retirement account for children created by Congress earlier this year.

 

The OCC and the FDIC are rescinding the “Interagency Guidance on Leveraged Lending” dated March 21, 2013, and the “Frequently Asked Questions for Implementing March 2013 Interagency Guidance on Leveraged Lending” dated November 7, 2014. The agencies say they expect banks to manage leveraged lending exposures consistent with general principles for safe and sound lending.

 

The OCC is updating guidance that applies to commercial loans to companies in an early, expansion, or late stage of corporate development. The agency's new bulletin refers to these loans as “venture loans” and provides transparency into the OCC’s supervisory approach and application of existing laws, regulations, and guidance. Specifically, the updated guidance reflects the OCC’s policy of not discouraging banks from engaging in prudent venture lending activities.

 

Stay tuned to the Gold Book as we move closer to the New Year and all its new changes!

What's New? Minimum Wage Increase in New York State

We remind you that the the minimum wage in New York State will increase by an additional 0.50 cents per hour starting January 1, 2026. This adjustment sets the new minimum wage at $17.00 per hour for New York City, Westchester, and Long Island, and $16.00 per hour for the rest of the state. Governor Hochul notes that this increase is intended to help lighten the burdens of inflation and rising costs of living for the lowest earners across the state. This change is part of a multiyear agreement that schedules subsequent annual increases starting in 2027 which are indexed to regional inflation.

For more information visit the NY State website.Save & Close

What's New? OCC Proposes Lowering Capital Requirements for Community Banks: A CBLR Update

The Office of the Comptroller of the Currency (OCC), alongside the Federal Reserve and the Federal Deposit Insurance Corporation (collectively, the federal banking agencies), is requesting public comment on a proposed rule aimed at relieving regulatory burden on certain community banks. This proposal amends the existing Community Bank Leverage Ratio (CBLR) framework.

See more on the OCC's bulletin.

What's New? Cost-of-Living Adjusted Limitations for 2026

The IRS published Notice 2025-67 on November 13, 2025, adjusting annual limitations for contributions to retirement plans annd IRAs. Check out our update page in the Gold Book and the IRS news release!

What's New? CFPB proposed changes to Section 1071

The Consumer Financial Protection Bureau (CFPB) has issued a new proposed rule to substantially revise the 2023 small business lending data collection and reporting rule under Section 1071, aiming to reduce regulatory burden and ensure the long-term success of the data collection regime by initially commencing with a narrower scope. To focus on core lenders and businesses, the proposal raises the covered financial institution origination threshold from 100 to 1,000 transactions, excludes products like merchant cash advances and agricultural lending, and changes the small business gross annual revenue definition from 5 million or less to 1 million or less. Additionally, the CFPB proposes removing discretionary data points, such as pricing information and denial reasons, to focus on statutory requirements, and setting a single compliance date of January 1, 2028, for all institutions above the new threshold.

Stay tuned as the proposed rule progresses through regulatory bodies.