OCC Seeks Comments Regarding Proposed Rule Determining When National Banks and Federal Savings Associations Are “True Lenders”

The Office of the Comptroller of the Currency (OCC) issued a notice of proposed rulemaking and is seeking comments on a proposed rule determining when a national bank or Federal savings association (bank) makes a loan and is the “true lender” in the context of a partnership between a bank and a third party.

The OCC acknowledges that the financial system is more efficient and can provide better access to consumer credit when banks work with other market participants to meet consumers’ credit needs.  Under the proposed rule, a bank makes a loan and is the “true lender” if, as of the date of origination, the bank: (i) is named as the lender in the loan agreement; or (ii) funds the loan.  The proposed rule seeks to provide clarity and uniformity, and would provide certainty about key aspects of the legal framework that applies to loans made as part of banks’ relationships with third parties.

Comments regarding the proposed rule may be submitted here until September 3, 2020.