“The Federal Reserve Wants to Change How You Shop for a Mortgage”
The Fed is weighing a proposal to lower capital requirements on certain mortgages and revise the treatment of mortgage-servicing rights, potentially freeing up balance sheet capacity for banks. The goal: draw more bank capital back into a market where banks originated just 35% of mortgages in 2023, down from roughly 60% in 2008. Earlier this week, Fed Vice Chair Michelle Bowman gave a speech on the subject at the American Bankers Association’s Community Bankers Conference.
“CFPB’s ‘Regulatory Burden’ Cost Consumers Billions: White House”
A new White House report estimates CFPB rulemaking has added between $237 billion and $369 billion in consumer costs since 2011, including higher per-loan costs for mortgages, auto loans, and credit cards. An earlier report released by Senate Democrats argued that recent CFPB rollbacks on overdraft and late-fee rules have cost consumers up to $19 billion.
“CFTC Defends Its Right to Prediction Market Enforcement as States Challenge Platforms”
The CFTC filed an amicus brief in federal court asserting its authority over prediction markets, some of which are facing state lawsuits alleging their contracts amount to gambling. Recent comments from CFTC Chairman Michael Selig indicate the agency may draft clearer rules for event contracts. The outcome of the legal challenges could clarify federal versus state oversight of emerging derivatives-style products.
“Banks That Won on Deposit Growth in 2025 Got Boost From M&A”
Core deposits rose about 4% industrywide in 2025, but banks between $10 billion and $100 billion in assets that completed acquisitions reported collective growth of 29%. Research from Invictus Group suggests those acquirers would have generated roughly 2% organic core deposit growth without their deals.
“Does Your Bank Belong in Stablecoins, Tokenized Deposits … or Both?”
Nine percent of community and midsize banks plan to implement or invest in tokenized deposits in 2026, while 57% have discussed the issue at senior levels, according to a new report from Cornerstone Advisors. Additionally, 5% plan to invest in stablecoins, and 71% have discussed doing so. Both paths require technology investment and clearly defined use cases before committing capital, says Cornerstone’s Ron Shevlin.
“M&A Veterans Emphasize Importance of Deal Timing”
U.S. bank deal announcements reached 181 in 2025, up 45% from the prior year. Executives and advisers say successful deals hinge on timing, with both sides needing operational capacity to execute. As consolidation narrows the buyer pool, preparation with regulators and investors has become part of that calculus.
“How Community Banks Can Fight AI-Driven Fraud”
Criminals are deploying AI tools for phishing, deepfakes, synthetic identities, and automated fraud schemes, increasing pressure on community banks’ risk controls. Banks can respond with AI-driven monitoring that detects behavioral anomalies in real time and integrates with core systems, while keeping staff in the decision loop.
In Other News
Former Prince Andrew was arrested on suspicion of misconduct as fallout from the Epstein files continues, the Congressional Budget Office expects the federal deficit to exceed 100% of GDP by year-end, and Winter Olympians share their sleep secrets.