The Office of the Comptroller of the Currency (OCC) issued supervisory guidance and proposed two rule changes aimed at reducing regulatory and reporting burden for community banks by further tailoring supervision and simplifying selected compliance and licensing processes. On supervision, the OCC clarified examination procedures for community banks by removing fixed examination requirements and instead aligning examination scope and frequency with risk-based supervision. It also said examinations for retail nondeposit investment products will rely only on the core assessment standards in the Community Bank Supervision booklet of the Comptroller’s Handbook. Separately, the OCC clarified that community banks’ model risk management practices should be commensurate with their risk exposures, business activities, and the complexity and extent of model use, and emphasized that its guidance is not prescriptive, including not requiring annual model validations. On rulemaking, the OCC proposed rescinding its Fair Housing Home Loan Data System regulation in 12 CFR 27 to eliminate largely duplicative data collection requirements for national banks, while maintaining data needed for fair housing-related supervisory activities. It also proposed broadening eligibility for expedited or reduced licensing procedures for community banks, with requirements tailored to an institution’s size and risk profile, and requested public comment on both proposals. The OCC also flagged further work on adjusting the community bank leverage ratio framework and developing a simplified strategic plan process for community banks to comply with the Community Reinvestment Act.
Office of the Comptroller of the Currency 2025-10-06
Office of the Comptroller of the Currency tailors community bank exams and seeks comment on rescinding fair housing data reporting and expanding expedited licensing
The Office of the Comptroller of the Currency (OCC) issued guidance and proposed rule changes to reduce regulatory burdens for community banks by tailoring supervision and simplifying compliance and licensing. The OCC clarified examination procedures, emphasizing risk-based supervision and non-prescriptive model risk management. Proposed changes include rescinding duplicative data collection and broadening eligibility for expedited licensing, with adjustments to the community bank leverage ratio framework and strategic plan processes under consideration.