President Joe Biden Wednesday signed a joint resolution passed by both chambers of Congress nullifying the Office of the Comptroller of the Currency’s “true lender” rule. CUNA supported House and Senate efforts to void the rule under the Congressional Review Act.
“Removal of the ‘true lender’ rule is a victory for credit unions, as this rule could have been exploited by any number of actors looking to avoid state laws designed to protect consumers,” said CUNA President/CEO Jim Nussle. “We continue to believe the OCC, and consumers, would be better served if the agency focused efforts on promoting fair and reasonable loan options from credit unions and other community lenders.”
Under the proposal, a national bank would have been considered the true lender of the loan if, as of the date of origination, it is named as the lender in the loan agreement or funds the loan.
CUNA supported the use of the Congressional Review Act to void the rule, as a reversal by the OCC could be subject to court challenges and could take years for another rulemaking to be promulgated.