Fair Banking and Fair Lending in 2026: From Debanking to Disparate Impact

This webinar helps bank leaders and compliance professionals make sense of the rapid and unprecedented changes reshaping fair banking and fair lending. Attendees gain clear, fact-based insight into shifting statutory interpretations, regulatory priorities, and enforcement approaches—cutting through uncertainty and speculation. With a stronger understanding of what is changing and why, participants are better equipped to advise management, support effective governance, and make informed, risk-based decisions that keep their institutions compliant, resilient, and well positioned in a fast-evolving regulatory environment.

Topics covered in this course

Executive Order 14331 “Guaranteeing Fair Banking for All Americans” (aka The Debanking Order)

• Aim: Prohibit financial institutions from “debanking” (closing accounts or denying services) based on political, religious, or other “reputational risk” factors.
• Effect: Financial institutions must have a valid reason for not banking a customer.  What are acceptable, valid reasons?
• Risk: Claims of discrimination.  The OCC issued a damning report 12/10/25 on their preliminary findings, finding that banks have “weaponized finance”, and promising to “halt these harmful and unfair practices”.

Executive Order 14281 “Restoring Equality of Opportunity and Meritocracy” (aka The Disparate Impact Order)

• Aim: Prohibit the use of disparate impact legal theory by federal agencies “in all contexts to the maximum degree possible”.
• Effect: Significant shift in fair lending – removing one of the 3 legs of discrimination, leaving overt discrimination and disparate treatment
• Risk: Bank uncertainty and fear that any relaxation of core policies and procedures will leave a financial institution open to litigation, state action, and supervisory look-backs if everything changes again in the next administration.

CFPB’s Shift in Priorities and Changes to Regulation B

• CFPB’s shift in fair lending: “No longer using disparate impact in supervision or enforcement of fair lending laws”
• Will now only focus on intentional racial discrimination and actual identified victims
• Substantial proposed changes to Reg B, including removal of the Effects Test (disparate impact) when determining if discrimination violates ECOA; changing what constitutes “discouragement” in credit; and amending Special Purpose Credit Programs.