On April 27, 2026, the Office of the Comptroller of the Currency (OCC) published a Notice of Proposed Rulemaking (NPRM) in the Federal Register. This proposal introduces strategic amendments to several long-standing OCC regulations, explicitly driven by the federal government’s Department of Government Efficiency (DOGE) deregulatory initiative.
For financial institutions, particularly those engaged in complex securitizations, community development projects, and federal savings association operations, this OCC proposed rule requires immediate executive attention. The proposal aims to rescind or revise provisions that the OCC has identified as unnecessary, duplicative, or lacking clear statutory authority. Rather than creating new compliance burdens, this regulatory rollback necessitates a detailed review of internal policies, risk management frameworks, and compliance reporting mechanisms to ensure alignment with the streamlined federal expectations.
C-suite executives, including CEOs, CFOs, and Chief Risk Officers, must understand how these targeted rollbacks will alter compliance obligations, particularly concerning credit risk retention rules and the nondiscrimination requirements applicable to federal savings associations. The public comment period for these proposed changes closes on May 27, 2026, creating a narrow window for institutions to assess internal impacts and submit formal feedback via Regulations.gov.
The Strategic Context: Executive Order 14219 and the DOGE Deregulatory Initiative
The proposed rule implements Executive Order 14219, which directs federal agencies to review existing regulations and eliminate provisions that are not based on the best reading of underlying statutory authority or that extend beyond clearly authorized mandates. According to the OCC, the review focused on identifying regulations that are duplicative of other legal requirements or impose obligations not expressly grounded in statute.
Navigating the OCC Proposed Rule: Core Areas of Regulatory Revision
The April 27, 2026, NPRM targets three distinct areas of the Code of Federal Regulations (CFR). Each area represents a specialized domain of banking operations, affecting public welfare investments, asset-backed securities, and fair lending compliance.
- Revisions to 12 CFR Part 24: Community and Public Welfare Investments
The OCC proposes removing references to minority- and women-owned entities from regulations governing community development corporations, public welfare investments, and other public welfare investments under 12 CFR Part 24. The OCC stated that these references are not required by statute.
- Overhauling 12 CFR Part 43: Credit Risk Retention Rules
The proposal would remove the portion of the credit risk retention rule under 12 CFR Part 43 that provides an alternative compliance option for lead arrangers of open market collateralized loan obligations (CLOs).
- Streamlining 12 CFR Part 128: Nondiscrimination Requirements Applicable to Federal Savings Associations
The OCC proposes eliminating certain nondiscrimination requirements applicable to federal savings associations under 12 CFR Part 128. The OCC indicated that these requirements are duplicative of existing civil rights and fair lending laws and lack clear independent statutory authority.
The Public Comment Process and Strategic Timelines
Regulatory change management requires proactive engagement with the rulemaking process. The OCC published the NPRM in the Federal Register on April 27, 2026. The agency has established a strict 30-day window for industry feedback, with public comments due via Regulations.gov no later than May 27, 2026.
At present, the OCC has not provided a definitive timeline for issuing a final rule following the close of this comment period. However, given the high-profile nature of the DOGE deregulatory initiative, institutions should anticipate a swift review process.
What This Means for Financial Institutions
The OCC’s proposed rule reflects a targeted effort to streamline specific regulatory requirements under the DOGE deregulatory initiative. While the proposal would not introduce new obligations, it may alter existing compliance considerations. Financial institutions, trade associations, and corporate sponsors significantly impacted by the removal of the CLO lead arranger risk retention alternative or the Part 24 public welfare investment revisions should consider submitting formal comments. Effective comments should provide empirical data demonstrating how the proposed changes will impact market liquidity, compliance costs, and credit availability.
How Schneider Downs Can Help
Schneider Downs supports financial institutions in assessing regulatory developments and evaluating their potential impact on governance, compliance, and risk management frameworks.
Our Risk Advisory professionals assist institutions with regulatory change management, compliance program assessments, and internal control evaluations to help organizations respond thoughtfully and efficiently to evolving supervisory expectations. If your organization needs assistance in proactively addressing these changes, please contact our team at [email protected].
About Schneider Downs Financial Services
The Schneider Downs Financial Services industry group supports financial institutions as they navigate evolving risk, regulatory, and governance challenges. Our professionals work with institutions to strengthen internal audit, risk advisory, and related risk management programs that support sound decision‑making, operational effectiveness, and regulatory expectations.
Through services spanning internal audit, risk advisory, IT risk advisory, third‑party risk management, fraud risk advisory, and enterprise risk and compliance, we help financial institutions design and enhance resilient, risk‑based programs aligned with their strategic objectives and operating environment.
To learn more, visit our Financial Services Industry Group page.
