House Votes to Repeal Trump-Era ‘True Lender’ Rule

House Votes to Repeal Trump-Era ‘True Lender’ Rule

June 24, 2021, Bloomberg Law

Karen Solomon is quoted in Bloomberg Law regarding the impact of Congress’s vote to rescind the “true lender” rule, which will simplify bank and fintech partnerships. Karen says the repeal may not radically change the bank-fintech business model. “But it’s going to make it more vulnerable to litigation,” she adds. “Absent the rule, it’s going to be much less clear when a bank can claim true lender status. And particularly with state banks, state officials may challenge when the bank is the true lender.”