Signs of moxie from the OCC and FDIC? The agencies are wading into the preemption waters to defend the “valid when made” doctrine.
Following action by the OCC yesterday, the FDIC proposed a rule stipulating that interest rates valid when the loan is made by a bank remain valid when the loan is transferred or sold.
Providing a long-awaited regulatory solution to court rulings challenging the principle, the OCC today proposed that interest rates valid when the loan is made by a national bank or federal thrift remain valid when the loan is transferred or sold.
As the Treasury prepares to issue its report on nonbank fintech issues, ABA today released a white paper featuring several fintech policy recommendations that would facilitate innovation both inside and outside of the regulated banking system and promote partnerships between banks and nonbanks.
The House today approved two bipartisan regulatory reform bills backed by ABA as part of its Blueprint for Growth.
ABA and 10 other banking, business and online lending trade associations today wrote to members of the House and Senate commending lawmakers’ efforts to codify “valid-when-made” doctrine, which states that legally made bank loans may be resold and collected by nonbank entities at the at the same interest rate.
Acting Comptroller of the Currency Keith Noreika today backed a legislative approach that would clarify which laws apply to interest rates on loans if the loans are resold.
Sen. Mark Warner (D-Va.) last week introduced an ABA-supported bipartisan bill clarifying that legally made bank loans may be resold and collected on by nonbank entities at the same interest rate.
Bankers and others are closely watching to find out if the usury battles thought long won and settled are re-opening.