January 2026 continued the regulatory shift that started last year: as federal agencies pull back from examination frameworks, state-level enforcement is stepping forward. Multiple agencies are moving away from disparate-impact oversight — HUD proposed removing its discriminatory-effects regulations, the CFPB and DOJ withdrew guidance on immigration status, and the Supreme Court let stand a Second Circuit ruling on disparate-impact standards.
At the same time, state attorneys general retain full authority to enforce disparate impact under the Fair Housing Act, and New York issued a final CRA-type framework for mortgage bankers. The throughline is clear: financial institutions (FIs) face a fragmented enforcement landscape where clear governance and documentation are more critical than ever.
Listen to our regulatory experts discuss these developments in depth in the February Reg Update podcast. For additional resources and regulatory analyses, check your Ncomply solution .