Congress Overrides the OCC’s True Lender Rule: What Are the Risks for Banks and Their Loan Program Nonbank Partners?
The Office of the Comptroller of the Currency (OCC)’s true lender rule was intended to create a bright line test for when a national bank or federal savings association should be considered the “true lender” in the context of a third-party partnership. Now that Congress, through a Congressional Review Act (CRA) resolution signed by President Biden, has overturned the OCC’s rule, banks and their nonbank partners must continue to navigate diverging court decisions and can expect their lending programs to face increased scrutiny from state regulators. In addition, changes in leadership at the OCC and other federal agencies under the Biden administration could result in a more challenging regulatory environment.
In this webinar, we will analyze and discuss the risks to banks and their loan program nonbank partners in the wake of the true lender rule’s congressional demise. Topics will include:
- Implications of CRA override for future “true lender” rulemaking
- Impact of CRA override on existing law
- Key “true lender” decisions and current “true lender” challenges
- Status of OCC and FDIC “Madden-fix” rules
- Potential loan program structures
- Risk mitigants for loan programs