Which schools permit students to advance in the curriculum or graduate without passing the national boards is another question. It's all about integrity or lack there of.
I'm curious about it too, as this is a rumor that has been on SDN for a while now. I was actually unsure about NYCPM's policy so I looked it up in the handbook. Then again, I should have realized this since students who don't pass part 1 by the october retest are dismissed from the school.
Requirements for Graduation
When the student successfully completes the program, the Faculty, the Dean and the President recommend the student to the Board of Trustees for graduation with the degree Doctor of Podiatric Medicine. The criteria for graduation are the following:
A. Successful completion of all didactic and clinical requirements of the curriculum with a cumulative GPA of at least 2.00.
B. Absence of outstanding disciplinary matters.
C. Fulfillment of all financial obligations to the College.
D. Completion of the program within six years, not including approved leaves of absence.
E. Passing of the NBPME Examination, Part I.
F. Successful completion of the Capstone clinical skills assessment in junior year.
G. Demonstrated professional competency and ethical standards to practice consistent with the criteria for licensing in New York State.
Oh and to respond to the OP, I don't think I've heard of any changes happening at NYCPM. I read that rumor somewhere before too, but I find it hard to believe that schools would be changing their grading scales/curves.