FDIC Issues Guidance on Interactive Teller Machine Classification

Regulatory Developments

FDIC Issues Guidance on Interactive Teller Machine Classification
On August 9, the FDIC issued guidance to all FDIC-supervised state nonmember banks that Interactive Teller Machines (ITMs) established by state nonmember banks will not be considered “domestic branches” requiring FDIC approval if certain conditions are met, including if the ITM is an automated, unstaffed facility owned or operated by the bank that enables existing customers to initiate interactive sessions with remotely located bank personnel. Additionally, while bank personnel can assist customers remotely, customers must be able to perform transactions independently and have the discretion to start and end interactive sessions with bank personnel. ITMs that do not meet these criteria may require a branch application.

FDIC Establishes Initial Submission Dates for Resolution Plans and Informational Filings For Covered Institutions
On August 8, in connection with the new final rule strengthening resolution planning, the FDIC announced the initial submission dates by which insured depository institutions (IDIs) must submit their resolution plans. Group A IDIs (those with $100 billion in total assets) must submit by July 1, 2025 (for Group A Cohort 1) or July 1, 2026 (for Group A Cohorts 2 and 3). Group B IDIs (those with at least $50 billion but less than $100 billion in total assets) must submit by October 1, 2025 (for Group B Cohort 1) or April 1, 2026 (for Group B Cohort 2).

FDIC Clarifies Rules on Signage, Advertising, and Misuse of Its Name or Logo
On August 16, the FDIC released a series of Questions and Answers (Q&As) related to its final rule governing FDIC official signs and advertising requirements, false advertising, misrepresentation of insured status, and misuse of the FDIC name or logo (Part 328 of the FDIC’s regulations), which became effective on April 1, 2024, with a compliance date of January 1, 2025. The Q&As provide answers to the most frequently asked questions that the FDIC has received from banks, trade associations, technology companies, vendors, and other stakeholders, addressing topics including proper placement and presentation of the official digital sign and non-deposit indicators, use of the advertising statement across different channels (e.g., websites, mobile applications, ATMs, social media platforms) for accepting deposits, and technical support.

“The banking industry and practices have substantially changed since the FDIC official sign and advertising rules were last significantly updated in 2006. The revisions extend the certainty and confidence that the FDIC official sign provides at bank branch teller windows to the digital channels through which depositors are increasingly handling their banking needs.”

—    Martin J. Gruenberg, Chairman, FDIC 

CFPB Advisory Opinion Affirms Applicability of TILA to Contract-for-Deed Transactions
On August 13, the CFPB issued a research report and advisory opinion on a form of home financing known as “contract-for-deed” transactions in which the buyer gains title to a home only after making a series of payments rather than gaining title to a home immediately after signing for a traditional mortgage. In its advisory opinion, the CFPB takes the position that contract-for-deed transactions are generally “residential mortgage loans” governed by TILA and Regulation Z, requiring large sellers (such as investment groups) to determine each borrower’s ability to repay, provide informative and accurate disclosures, including an annual percentage rate and payment schedule, and adhere to TILA’s prohibition on balloon payments when interest rates exceed a given level.

CFPB Issues Updated Filing Instructions Guide for the Small Business Lending Rule
On August 16, the CFPB published its annual filing instructions guide for small business lending data collected in 2025 (covering the period from July 18, 2025 to December 31, 2025) to help those who will need to file small business lending data with the CFPB in 2026. The guide includes an overview of the filing process, provides instructions for what to enter into each data field, lists the validation requirements that a register must meet before it can be filed, and provides a summary of other resources for additional assistance.

The OCC Updates the Bank Accounting Advisory Series
On August 15, the OCC released the 2024 edition of its Bank Accounting Advisory Series (BAAS). The BAAS expresses the OCC Office of the Chief Accountant's interpretations of accounting topics relevant to national banks and federal savings associations and promotes consistent application of accounting standards and regulatory reporting among such financial institutions.

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