The Regulatory Agency, Office of the Comptroller of the Currency (OCC) on Monday, July 20th,2020 proposed a regulation that would determine when a National Bank or Federal Savings Association makes a loan and is the “true lender” in the context of a partnership between a bank and a third party, such as a marketplace lender. Under this proposal, a bank makes a loan if, as of the date of origination, it is named as the lender in the loan agreement or funds the loan (1).
Description of the Proposal
Several provisions have been made to the federal banking law that grants bank the authority to makes loan. The OCC provision propose that, for the revised sections 5136 and 5197 of the Revised Statues, section 24 of the Federal Reserve Act and section 4(g) and 5(c) the Home Owners’ Loan act, a bank makes a loan when, as of the date of origination, it (1) is named as lender in loan agreement or (2) funds the loan (1).
This proposal is to provide regulatory clarity and certainty that would enable banks and their partners to lend in a manner consistent with their business objectives and risk appetite and in compliance with applicable laws and regulations. To read more details on the OCC proposed regulation please see below, the deadline to make comments to this proposal is September
- Posted by Megan Warner
- On Wednesday July 22nd, 2020
- 0 Comments