Maryland Legal Alert for Financial Services
Maryland Legal Alert - February 2026
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Annual Assessment Fee Credit Application Available
CFPB and DOJ Withdraw Joint Statement on Consideration of Immigration Status Under ECOA
Annual Assessment Fee Credit Application Available
The Maryland Office of Financial Regulation (“OFR”) has announced the availability of the application for qualifying Maryland financial institutions to obtain an annual assessment fee credit for opening and/or maintaining branch locations in low-to moderate-income (“LMI”) communities, pursuant to the Maryland Access to Banking Act.
Financial institutions with a composite CAMELS ratings of 1 or 2 may be eligible for the credit based on deposits maintained at qualifying LMI branch locations as of June 30, 2025, including enhanced credits for de novo branches. The credit is available on an annual basis. Institutions may also elect to donate any awarded credit to the Maryland Community Investment Venture (“MCIV”) Fund.
Eligible financial institutions are encouraged to review the application requirements and submit timely applications. For additional information, institutions should contact the Maryland Office of Financial Regulation.
1. Who is eligible to apply for the assessment fee credit?
Maryland state-chartered banks and credit unions that are well-capitalized and have a composite CAMELS rating of 1 or 2 are eligible, provided they operated a qualifying branch in an LMI census tract in Maryland as of June 30, 2025.
2. What deposits qualify for the credit?
Deposits originated and housed at a branch located in an LMI census tract, as reported to OFR as of June 30, 2025, qualify for the credit, subject to statutory limits.
3. How is the credit calculated?
For de novo branches, the credit is calculated at 12 cents per $1,000 of deposits for the first five years after opening. For non-de novo branches, the credit is calculated at 6 cents per $1,000 of deposits, subject to applicable national deposit growth caps.
4. Is the credit available every year?
Yes. The assessment fee credit is available annually, subject to eligibility and statutory requirements.
5. May an institution donate the credit instead of applying it to its assessment?
Yes. Institutions may elect to donate any awarded assessment fee credit to the Maryland Community Investment Venture (“MCIV”) Fund.
6. Where can institutions obtain the application and additional guidance?
The application and additional guidance are available through the Maryland Office of Financial Regulation.
For more information concerning this topic, please contact Tamia J. Morris
Contact Tamia J. Morris | 410-576-4021
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CFPB and DOJ Withdraw Joint Statement on Consideration of Immigration Status Under ECOA
On January 12, 2026, the Consumer Financial Protection Bureau (“CFPB”) and the U.S. Department of Justice (“DOJ”) announced the withdrawal of their October 12, 2023, Joint Statement addressing a creditor’s consideration of an applicant’s immigration or citizenship status under the Equal Credit Opportunity Act (“ECOA”) and Regulation B.
As discussed in our November 2023 Maryland Legal Alert on the Role of Immigration Status in Credit Decisions, the 2023 Joint Statement cautioned that certain creditor policies related to immigration or citizenship status could, in some circumstances, present fair lending risk, particularly where such policies could operate as proxies for prohibited bases such as race or national origin.
In withdrawing the statement, the CFPB and DOJ indicated that the guidance conflicted with the express language of ECOA and Regulation B and could lead to uncertainty or unnecessary compliance burdens. The agencies reiterated that Regulation B permitted creditors to request and consider information regarding lawful residency and related factors where necessary to evaluate creditworthiness or to protect a creditor’s rights and remedies with respect to repayment.
The agencies emphasized that the withdrawal does not alter the underlying requirements of ECOA or Regulation B, which continue to prohibit discrimination on prohibited bases, including race and national origin.
Practice Pointer: Financial institutions should review underwriting, servicing, and compliance policies to confirm that any consideration of immigration or citizenship status is clearly connected to permissible credit-related purposes and is applied consistently. Institutions may also wish to ensure that internal documentation and training materials reflect current regulatory guidance and accurately describe how such factors may be used in credit decisioning, consistent with ECOA and Regulation B.
For more information concerning this topic, please contact Tamia J. Morris
Contact Tamia J. Morris | 410-576-4021
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