Strengthening Oversight for the Financial Sector Act of 2026

This legislation modifies existing requirements for the regulation and examination of credit union organizations and their service providers under the Federal Credit Union Act. These amendments include adjustments to how credit unions notify the Board regarding service relationships, aiming to refine the oversight framework for third-party services. A significant provision of the bill grants the Director of the Federal Housing Finance Agency (FHFA) new authority to regulate and examine service providers to **government-sponsored enterprises** (GSEs) and Federal Home Loan Banks. This ensures that any activity performed by contract for these regulated entities will be subject to FHFA oversight, mirroring the regulation applied if the entity performed the activity itself. Regulated entities will also be required to **notify the FHFA** of new service relationships within 30 days, thereby extending federal oversight to critical outsourced functions within the housing finance sector.