House ‘true lender’ resolution, CLF bill markup scheduled this week

June 21, 2021

The House will consider a CUNA-supported repeal of the Office of the Comptroller of the Currency’s “true lender” proposal this week. The House Financial Services Committee will also mark up the CUNA-supported Central Liquidity Facility (CLF) Enhancement Act (H.R. 3958) starting Wednesday. 

The OCC’s proposal would allow a national bank would be 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.

The Senate passed its own resolution of disapproval in May.

H.R. 3958 would permanent CLF changes temporarily made by the CARES Act.  Specifically, it would expand the borrowing authority of NCUA’s Central Liquidity Facility to 16 times the paid in capital (up from 12 times). This is currently in place through the end of 2021.

It would also make it easier for credit unions to join the CLF through their corporate credit unions.

The markup is scheduled to begin Wednesday at 10 a.m. (ET), and will be streamed live on the committee’s website.

Other hearings CUNA is engaged with this week include:

  • Wednesday, 2 p.m. (ET): Senate Appropriations Committee Subcommittee on Financial Services and General Government hearing, “Fiscal Year 2022 Budget for the Department of the Treasury.”
  • Thursday, 10 a.m. (ET): Senate Banking, Housing and Urban Affairs Committee hearing, “Examining Bipartisan Bills to Increase Access to Housing.”
  • Thursday, 10 a.m. (ET): House Appropriations Subcommittee on Financial Services and General Government markup of the FY 2022 Financial Services and General Government Appropriations Act.