ICBA and other groups told Congress they oppose legislative efforts to repeal the OCC’s “true lender” rule. The OCC rule, which ICBA supported in a comment letter last year, creates a standard to determine when a bank is the “true lender” when partnering with a third party.
ICBA continues support for ‘true lender’ rule
May 07, 2021 / By ICBA
ICBA and other groups told Congress they oppose legislative efforts to repeal the OCC’s “true lender” rule. The OCC rule, which ICBA supported in a comment letter last year, creates a standard to determine when a bank is the “true lender” when partnering with a third party.
ICBA and other groups told Congress they oppose legislative efforts to repeal the OCC’s “true lender” rule.
Joint Letter: Following a similar ICBA statement to Congress last week, the groups said the OCC rule brings clarity and accountability to lending and promotes wider access to credit. Repealing it would create significant legal impediments to creating this needed framework, they said.
Rule: The OCC rule, which ICBA supported in a comment letter last year, creates a standard to determine when a bank is the “true lender” when partnering with a third party. Under the rule, banks are deemed true lenders if they fund the loan or are named as the lender in the loan agreement on the origination date.
Congress: House and Senate lawmakers have introduced resolutions to repeal the rule under the Congressional Review Act, which allows lawmakers to invalidate federal rules and limits agencies’ ability to issue a similar rule in the future. Proponents argue the rule undercuts state consumer protection laws.
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