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House panel advances ICBA-supported 1071 reform bill

The House Financial Services Committee advanced ICBA-advocated legislation to exempt most community banks from small-business data collection and reporting requirements under Section 1071 of the Dodd-Frank Act.

Details: The committee voted 26-22 along party lines to advance Chairman French Hill’s (R-Ark.) Small LENDER Act (H.R. 941). The bill would:

• Exempt community banks under $10 billion in total assets from 1071 reporting.  
• Exempt banks that originated fewer than 2,500 small business loans in each of the previous two calendar years.  
• Define a “small business” as one with gross annual revenues of $1 million or less in the most recently completed fiscal year.  

ICBA View: In a letter to committee leaders ahead of the markup, ICBA urged passage of H.R. 941. In a national news release following the committee vote, ICBA President and CEO Rebeca Romero Rainey applauded committee members who voted to advance the legislation and urged passage by the full House.

Background: The CFPB’s 1071 rule requires community banks and other financial institutions to collect and report 81 pieces of data on every small business loan application, well beyond what is required by statute. ICBA has long supported legislative solutions to exempt community banks from the rule.

Rulemaking Update: In 2025, the CFPB proposed a new rule to implement Section 1071 that would exempt all banks that made fewer than 1,000 loans to businesses with less than $1 million in gross annual revenue in each of the previous two calendar years. A recent CFPB filing with the Office of Information and Regulatory Affairs notes its final rule on Section 1071 could drop as soon as this week.

Capital Summit Key Issues: The Small LENDER Act is among the key issues community bankers will be lobbying on during next week’s ICBA Capital Summit.

More ICBA Advocacy:

• Following the CFPB’s updated 1071 proposed rule in November, ICBA reiterated its calls for the CFPB to fully exempt all community banks under $10 billion in assets.
• ICBA has also continuously called on Congress to advance the 1071 Repeal to Protect Small Business Lending Act (H.R. 976/S. 557), which would repeal the statute that underlies the CFPB rule and was advanced by the committee last year.

ADVOCACY

ICBA, others support changes to OCC supervisory appeals system

ICBA and other groups said the OCC’s proposed changes to its framework for banks’ appeals of supervisory decisions would restore confidence, bolster accountability, and improve transparency in the appeals process.

Details: In a joint letter to the OCC, the groups said they support the agency’s objectives to enhance the independence of the appeals process and the transparency of its decision-making and believe that the proposed amendments reflect thoughtful improvements to an unfortunately seldom-used formal appeals process.

Background: The OCC in February proposed establishing revised procedures and policies for appeals by OCC-supervised entities of material supervisory determinations. The OCC said:

• The proposed changes are intended to enhance the independence and efficiency of the bank appeals function.
• The proposal would add an “appeals board” to hear bank appeals, enhance the role of the ombudsman as a neutral liaison to help banks seek redress for grievances, establish a de novo standard of review for appeals, and strengthen prohibitions against retaliation.

More Appeals Changes: The FDIC early this year approved amendments to its Guidelines for Appeals of Material Supervisory Determinations, which includes replacing its Supervision Appeals Review Committee with the Office of Supervisory Appeals.

ICBA Advocacy: ICBA has long supported reforms to the supervisory appeals process in response to community banker concerns.

• ICBA in September said it supported the proposed enhancements to the FDIC’s internal supervisory appeals process, though it prefers a Federal Financial Institutions Examination Council appeals office.
• ICBA also supports the FAIR Exams Access Act, which would create an Independent Examination Review Director within the FFIEC to address examination complaints and procedures. 

ICBA, others request extension of comment periods for GENIUS Act proposals

ICBA and other groups asked the Treasury Department, FDIC, Financial Crimes Enforcement Network, and Office of Foreign Assets Control to extend the comment periods for their respective GENIUS Act proposals.

Details: In a joint letter to the agencies, the groups said that because the active proposals rely on unfinished GENIUS Act regulations from the OCC, the deadlines should be pushed to 60 days after the issuance of the OCC’s final rule.

GENIUS Act Proposals:

• FinCEN and OFAC this month issued a joint proposed rule to implement the GENIUS Act’s anti-money laundering and sanctions compliance program requirements.
• The FDIC this month released a proposed rule to establish a prudential framework for FDIC-supervised payment stablecoin issuers under the GENIUS Act.
• The OCC issued a GENIUS Act implementation proposal in late February and is accepting public comments through May 1.
• In a separate Treasury Department proposed rule to implement GENIUS Act policies on state-level regulatory regimes, Treasury said the OCC’s rule will serve as a key component of the federal regulatory framework.
• The FDIC in December proposed a rule to establish GENIUS Act procedures for the agency to accept and process payment stablecoin issuer applications from FDIC-supervised banks, with comments due May 18 following an ICBA-advocated extension.

ICBA Principles: ICBA in November sent key principles for payment stablecoin supervision in a letter to the Treasury Department regarding implementation of the GENIUS Act.

Op-ed applauds state tax on credit unions that acquire community banks

A new community banker op-ed applauds Washington’s new law requiring credit unions that acquire or merge with community banks to pay business and occupation taxes on those transactions.

Details: In the Puget Sound Business Journal, Josh Deck—president and CEO of Olympia Federal Savings Bank in Olympia, Wash.—says the new law is a first step toward leveling the financial playing field between community banks and credit unions in the state.

Acquisition Impact: “When a tax-paying local bank is absorbed by a tax-exempt credit union, communities lose not only vital public funding for essential services, but also a deeply rooted civic partner,” he added.

Background: Enacted in January, the law subjects Washington state-based credit unions that acquire a bank to the state’s business and occupation tax of 1.2%.

Advocacy: The Community Bankers of Washington advocated for the law, noting that the B&O tax exemption for credit unions costs the state approximately $130 million per year. The CBW said if the record pace of credit union acquisitions of community banks continues, local businesses will be deprived of the primary mechanism for reinvestment in Main Street.

ICBA View: In a recent Banking Dive article, ICBA Senior Vice President and Regulatory Counsel Michael Emancipator said the Washington lawmakers got it right. “Community bankers applaud state legislative efforts to mitigate revenue loss each time tax-paying community banks are acquired by a tax-exempt credit union,” he said.

CFPB publishes ECOA rule

The Consumer Financial Protection Bureau published in the Federal Register a proposed rule to amend provisions related to Regulation B, the regulation implementing the Equal Credit Opportunity Act.

Details:

• The rule explicitly states that ECOA does not authorize disparate-impact claims, which reflects the CFPB view that ECOA's text (unlike the Fair Housing Act) lacks the necessary language to support effects-based liability.
• The rule narrows the prohibition on discouragement to oral or written statements that the lender “knows or should know” would discourage a reasonable person from applying on a prohibited basis.
• The rule prohibits lenders from offering special-purpose credit programs that use race, color, national origin, or sex as eligibility criteria.

ICBA View: ICBA in December said the CFPB’s proposal would reduce regulatory uncertainty and protect community banks from costly litigation but needs to be refined. ICBA said it:

• Supports the CFPB’s elimination of disparate impact liability under ECOA because the statute lacks an “otherwise adversely affect” clause, which courts have found to trigger disparate impact analysis in other statutes.  
• Supports the CFPB’s decision to limit discouragement to oral or written statements and not to include things like branch placement, which has limited communicative value.  
• Opposes proposed changes to special-purpose credit program eligibility.

French Hill to speak at ICBA Capital Summit

House Financial Services Committee Chairman French Hill (R-Ark.) is slated to speak next week at the ICBA Capital Summit.

Details: Hill is scheduled to speak at 8 a.m. (Eastern time) Thursday, April 30. Other confirmed speakers include FDIC Chairman Travis Hill and Treasury Under Secretary for Domestic Finance Jonathan McKernan. Learn more and register.

Grassroots: Community bankers are encouraged to use ICBA’s Be Heard grassroots action center to let members of Congress know that community bankers are coming to Washington.

More:

• Set for April 29–May 1 at the Grand Hyatt Washington, the ICBA Capital Summit empowers community bankers to make their voices heard on Capitol Hill and ensures policymakers understand the vital role of community banks in driving growth and opportunity.
• Community bankers will lobby on key issues such as digital assets, tiered regulation, taxing large credit unions, boosting agricultural lending, and more during their time in Washington.
• Community bankers can register, view the schedule, and access frequently asked questions on the ICBA Capital Summit site and follow #ICBAsummit on social media.

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INNOVATION

Community banks can test AI readiness through tabletop exercise next week

ICBA, in partnership with the Cybersecurity and Infrastructure Security Agency (CISA), will host a complimentary tabletop exercise next week to help community banks test their AI readiness, incident response plans, and broader cybersecurity preparedness.

Details: Scheduled for noon (Eastern time) Wednesday, April 30, the CISA/ICBA Cyber Tabletop Exercise Webinar:

• Is free for ICBA community banks.
• Will walk participants through a scenario involving escalating cybersecurity challenges, including phishing attacks, unauthorized use of AI tools, ransomware incidents, and data breaches exposing sensitive information.
• Is designed to help banks assess their response protocols, identify gaps, and strengthen preparedness for emerging AI-related and cyber risks. Register here.

ICBA Community discussions on ACH audits, non-resident accounts

Discussions on ICBA Community this week include:

• The Certified Community Bank Marketing Strategist certification.
• Non-resident accounts.
• ACH audits.

Forum for Sharing: ICBA Community is a secure, members-only space where more than 7,500 community bankers now connect, ask questions, and exchange ideas. It is accessible anytime via desktop or app (Apple and Google).

Did you get this email forwarded from a friend or colleague? Sign up now to get it directly to your inbox instead. ICBA membership required.

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EDUCATION

Agricultural lending webinar tomorrow

ICBA will host its Agricultural Lending Updates webinar at 11 a.m. (Eastern time) tomorrow, April 23, offering timely insight into the risks and pressures shaping agricultural portfolios in 2026.

Details: The session reviews key challenges facing today’s ag borrowers, with updates across crop, cattle, poultry, and hog operations as well as practical strategies to help banks manage credit risk. Learn more and register.

Call Report Seminars scheduled for May

ICBA in May will host two seminars designed to build confidence and clarity around the call report process, from foundational concepts to more advanced applications.

Details: The Introduction to Call Report Seminar on May 12 introduces the core reporting process, while the Advanced Call Report Seminar on May 13 builds on those fundamentals to tackle more complex requirements.

New news about the FedNow Service

Instant payments and the FedNow^® Service continue to grow and gain adoption momentum. Read more.

NOTED

FDIC announces relief for Washington banks

The FDIC announced regulatory relief to facilitate recovery in areas of Washington affected by severe storms, straight-line winds, flooding, landslides, and mudslides. The agency is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe conditions.

Retail sales increase in March

Retail sales increased a seasonally adjusted 1.7% in March and were up 4.0% from a year ago, according to the Commerce Department.

Pending home sales rise in March

Pending home sales in March increased by 1.5% from the prior month but were down 1.1% year over year, according to the National Association of Realtors.

Business inventories grow in February

Business inventories grew 0.4% in February and were up 1.3% from a year ago, according to the Commerce Department. Sales rose 1.7% for the month and 5.5% for the year.  

Worth Sharing

Financial Services GOP @FinancialCmte: WATCH @RepMeuser in support of H.R. 941: “The data collection mandates under Section 1071 increase costs, discourage lending, and ultimately make it harder for small businesses to access the capital they need to grow and succeed. H.R. 941 takes a targeted approach to fix this by raising the threshold for those who are subject to the rule, ensuring that truly small lenders are not swept in.”

Sanibel Captiva Community Bank @BankSanibel: This is what community banking looks like.💙Employee & Community Engagement Coordinator Laura Marsh was at Oasis Elementary North last week, teaching 1st graders money lessons. You’re never too young to learn about saving, spending & making money choices.

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We'll explore the real drivers behind deposit retention, highlight the critical 90-day activation window, and share a practical framework to help you capture more value from new accounts and turn them into lasting relationships. Register for this complimentary webinar at 3:00 p.m. (Eastern) Tuesday, May 12.

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