House approves resolution to nullify ‘true lender’ rule
The House voted Thursday to nullify the Office of the Comptroller of the Currency’s “true lender” rule. The joint resolution having passed the Senate in May, the rule will now be nullified with the signature of President Joe Biden.
CUNA wrote to the House earlier this week supporting the resolution of disapproval and supported the Senate’s action as well.
The rule 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.
CUNA believes this could be exploited to promote “rent-a-charter” arrangements to evade state restrictions on high interest rates or loan terms.