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American Banker
Kenneth H. Thomas argued in an American Banker opinion piece that the Office of the Comptroller of the Currency contributed to the July 10 failure of Kentland Federal Savings and Loan, the nation’s smallest bank, by improperly downgrading its Community Reinvestment Act rating in late 2023. The downgrade blocked the thrift’s CDFI certification and $600,000 in committed investments; the rating was corrected in March 2025, too late to prevent failure.
American Banker
United Bank and Five Points Bank, both top performers in Capital Performance Group’s annual ranking, told American Banker they stayed in mortgage lending as large banks retreated because the product builds relationships in the communities they serve. The banks’ experience points to a durable role for community institutions in a market that national lenders have largely ceded.
CDFinance Policy
POLITICO Pro
Two organizations filed a lawsuit Friday in federal court claiming that the failure of the Trump administration to distribute congressionally appropriated funds to the Community Development Financial Institutions Fund violates U.S. law, including the Constitution. The lawsuit, filed in U.S. District Court in the Northern District of California by Inclusive Action for the City and the CAMEO Network, alleges four violations of law, including the take care clause and the separation of powers...
FDIC; Office of the Comptroller of the Currency; ABA Banking Journal
The Federal Deposit Insurance Corp. adopted a two-phase review for deposit insurance applications, giving qualifying de novo applicants contingent authorization within 120 days and then up to 12 months to complete organizational steps. The Office of the Comptroller of the Currency endorsed the change, and FDIC Chairman Travis Hill said a healthy pipeline of new entrants is critical to the sector, particularly for community banks.
