The House today voted 218 to 208 to repeal the OCC’s “true lender” rule. The rule, finalized in 2020, established a test to determine when a bank is considered the true lender on a loan made in a partnership with a nonbank entity. On May 11, the Senate voted to repeal the rule using a Congressional Review Act resolution.
The measure now goes to the White House, where President Biden is expected to sign it. Following the vote, the OCC said it reaffirms its long-standing position that predatory lending has no place in the federal banking system.
“Moving forward, the OCC will consider policy options, consistent with the Congressional Review Act, that protect consumers while expanding financial inclusion,” the OCC said. “Both of these priorities are part of the agency’s mission of ensuring that national banks and federal savings associations provide fair access to financial services for all Americans and that customers are treated fairly.”
ABA and other trade groups have previously written in opposition to the Congressional Review Act resolution, stating that the next comptroller of the currency should analyze the rule and consider whether to initiate a new rulemaking to create a more robust true lender framework for providing safe and affordable credit to consumers.