OCC Proposes Rule To Settle 'True Lender' Question

OCC Proposes Rule To Settle 'True Lender' Question

July 20, 2020, Law360

Karen Solomon is quoted in Law360 regarding the Office of the Comptroller of the Currency’s proposed  rule to clarify the “true lender” question. Ms. Solomon says, “The OCC's proposal is a clear and very straightforward way of resolving the true lender issue.”

She adds the OCC makes clear in its notice that if a bank is designated the loan originator, it will be responsible for complying with a robust framework of consumer protection laws and safety and soundness standards. “Establishing a bright-line standard will encourage and facilitate bank lending partnerships with fintech companies,” she says.