Is OCC Bulletin 2014-37 still active?

The core data integrity standards of 2014-37 remain, but the reputation risk components were officially removed on March 20, 2025, via OCC Bulletin 2025-4, signaling a pivot toward objective, risk-based supervision.

How does Executive Order 14331 impact debt sales?

Executive Order 14331 (signed August 7, 2025) provides a safe harbor for banks, mandating that they cannot be penalized for engaging in lawful but 'disfavored' business activities like debt sales, provided they meet individualized risk standards.

What is the 'Fear Tax' in debt sales?

The 'Fear Tax' refers to the 15-20% loss in asset recovery value lenders accept when they sell debt under the outdated 2014 reputation risk framework rather than the modern 2025-2026 individualized risk framework.

How does OCC Bulletin 2025-4 change bank examinations?

As of March 20, 2025, Bulletin 2025-4 removed reputation risk from the Comptroller's Handbook, mandating that examiners judge activities based on individualized, objective financial risk rather than public opinion.

The Great Liquidity Reset | OCC 2025-4 & The End of Reputation Risk

The Great Liquidity Reset: Why 2025-2026 is the Era of the Bold Creditor

Institutional Intelligence | Rescinding the 'Fear Tax' of 2014

Executive Summary

The "Dark Ages" of debt sales (2014–2024) were defined by Reputation Risk—a subjective supervisory lever that forced banks to accept suppressed pricing. In 2025, the federal government officially killed the 'Reputation Risk' exam. Lenders who continue to operate under legacy fear-models are currently losing 15–20% in asset recovery value to a ghost that no longer exists.

The Hartman Reality Check: If your current advisor is quoting OCC 2014-37 without referencing the March 20, 2025 Revision, they aren't protecting you—they are costing you. The 'Fear Tax' is over. Liquidity is now a function of data, not optics.

1. The Death of the 'Reputation Risk' Exam

For 11 years, OCC Bulletin 2014-37 was the industry's Boogeyman. It suggested that a bank’s reputation was tied to the collection tactics of a third-party buyer. Competition-driven platforms still use this outdated fear to sell compliance subscriptions.

The 2025 Update: On March 20, 2025, the OCC issued Bulletin 2025-4, which officially performed a surgical removal of reputation risk from the Comptroller’s Handbook. The FDIC followed suit on April 8, and the Federal Reserve on June 23. The "Ghost of 2014" has been officially exorcised.

2. Executive Order 14331: The New 'Safe Harbor'

Signed on August 7, 2025, Executive Order 14331 (Guaranteeing Fair Banking for All Americans) provides the ultimate legal shield for debt sellers. It mandates that no institution can be penalized for engaging in lawful but "disfavored" business activities—including debt sales.

The Opportunity: This EO requires regulators to judge bank actions based on individualized, objective, and risk-based standards. For the first time in a decade, banks have a "Green Light" to sell non-performing assets based on yield and data integrity rather than publicity fear.

3. From Fear to Protocol: The Fitzgerald 2026 Standard

While the competition is still building "Checklists" to avoid a risk that has been rescinded, Fitzgerald Advisors has pivoted to Algorithmic Liquidity. Our 2026 Protocol replaces legacy reputation vetting with data-driven safe harbors:

The 1033 Data Standard

We leverage Section 1033 data integrity to ensure your loan tape is 'bulletproof,' satisfying the 2026 'individualized risk' criteria.

Recovery Arbitrage

With reputation fear removed, the buyer pool has expanded to include institutional funds previously 'debanked' by legacy standards.

Initiate 2026 Liquidity Mandate

The 2014 playbook is dead. Let Fitzgerald Advisors engineer a Forward Flow Mandate that reflects the 2025-2026 regulatory reality.

Open a 2026 Mandate

Hartman Managing Member

Director of Portfolio Liquidity & Asset Disposition Specializing in NPL Liquidity, Fintech Integration & Regulatory Compliance

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The Great Liquidity Reset | OCC 2025-4 Debt Sale Protocol