CFPB, DOJ Withdraw Statement on the ECOA and Noncitizen Borrowers

Adam Witmer
Fair Lending, Regulatory Update

On January 12, 2026, the CFPB and the DOJ withdrew their joint statement issued in October 2023 regarding the implications of a creditor's consideration of an individual's immigration status under the Equal Credit Opportunity Act (ECOA). The joint statement was issued to remind financial institutions that all credit applicants are protected from discrimination on the basis of their national origin, race, and other characteristics covered by the ECOA, regardless of their immigration status.

2026 HMDA Exemption Threshold

Adam Witmer
Regulatory Update, HMDA

On January 7, 2026, the CFPB issued a final rule that adjusted the HMDA exemption threshold from $58 million to $59 million. The adjustment is based on the 2.5 percent increase in the average of the CPI-W for the 12-month period ending in November 2025. Therefore, banks, savings associations, and credit unions with assets of $59 million or less as of Dec. 31, 2025, are exempt from collecting data in 2026.

Escrow Exemption Threshold for 2026

Adam Witmer
Regulation Z, Regulatory Update

On January 7, 2026, the CFPB announced the annual adjustment to the asset size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan under Regulation Z. These changes reflect updates to the exemption from TILA’s escrow requirement of creditors that, together with affiliates that regularly extended covered transactions secured by first liens, had total assets of less than $2 billion (adjusted annually for inflation) and the exemption the Bureau added, by implementing section 108 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA), for certain insured depository institutions and insured credit unions with assets of $10 billion or less (adjusted annually for inflation).

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