OCC finalizes pair of community bank tailoring rules

• Key takeaway: The Office of the Comptroller of the Currency finalized two rules Tuesday. The first rescinds the agency's Fair Housing Home Loan Data System rule and the second would streamline the application processes for banks with less than $30 billion of assets.
• Expert quote: "Over the last couple of decades, regulatory burdens coupled with the proliferation of a one-size-fits-all supervisory framework have cut the number of community banks across our nation in half." — Comptroller of the Currency Jonathan Gould
• Forward look: The rules are part of a broader push by the Trump administration to reduce the regulatory burden on the banking industry, particularly for smaller banks. 

The Office of the Comptroller of the Currency Tuesday finalized two rules targeted at reducing the regulatory burden for community banks, part of the administration's efforts to slim down supervision to its most essential elements for smaller institutions. 

In one rule, the OCC rescinded its Fair Housing Home Loan Data System regulation, ending what the agency has described as obsolete and redundant home loan data collecting requirements on national banks. The agency said the change would ease compliance costs without materially affecting "the availability of data necessary for the OCC to conduct its fair housing-related supervisory activities."

In a separate rule, the OCC amended its corporate activity licensing rules to streamline paperwork for banks with $30 billion in assets or less. The rule creates a new category under the rules for a "covered community bank" or "covered community savings association" that would allow such institutions access to all existing expedited and/or reduced filing procedures. To qualify as "covered," a bank must have under $30 billion in assets, not be affiliated with a larger institution, be "well capitalized" and not be subject to certain enforcement actions.

Comptroller of the Currency Jonathan Gould said the rules were an effective way to boost community banks' ability to serve the depositors and borrowers in the communities they serve. 

"Community banks serve critical constituencies and lend to Main Street businesses, that in turn support vibrant local economies," said Comptroller of the Currency Jonathan Gould. "As Comptroller, I've prioritized addressing the challenges of community banks by streamlining regulation and tailoring supervision. Today's actions execute on meaningful reforms as we continue working to help these institutions best serve the American people on a level playing field."

Regulation and compliance

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The OCC under Gould has taken a number of steps to reduce the compliance burden for community banks, removing what those institutions have described as onerous regulations put in place in the wake of the 2008 Global Financial Crisis. 

As of Jan. 1, 2026, the OCC eliminated policy-based exam requirements not mandated by law, instead giving examiners and regulators a free hand in determining what kinds of examination to conduct on community banks. Examiners will instead use a fully risk-based approach, tailoring exam frequency and scope to each bank's size, complexity and risk profile. The OCC says the move will rely on examiner discretion and simplify the burden on small firms.

The OCC also recently requested information from public stakeholders groups on their core providers, as part of an initiative to reevaluate third-party risk management rules given what they say is a highly concentrated market for core service providers. 

Banks and their trade organizations largely argued that a small group of core providers dominate the market for critical back-end bank infrastructure. That concentration, the independent Community Bankers of America said in its letter, allows vendors to impose rigid contracts and disincentivize banks from migrating or switching providers. In many cases, regulators continue to hold banks accountable for downstream operational and compliance risks.