• Attorneys
  • Practices & Industries
  • Thought Leadership +
    • Videos
    • Podcasts
    • Publications
      • Chemical Law & Prop 65 Blog
    • Webinars
  • News & Events +
    • News
    • Events/
      Speaking Engagements
  • About
  • Careers
  • Diversity
  • Contact
  • Offices
  • Payment Portal +
    • Pay your invoice
    • Pay your retainer
Buchalter
  • About
  • Careers
  • Diversity
  • Contact
  • Offices
  • Attorneys
  • Practices & Industries
  • Thought Leadership +
    • Publications
      • Chemical Law & Prop 65 Blog
    • Webinars
    • Videos
    • Podcasts
  • News & Events +
    • News
    • Events/
      Speaking Engagements
  • Payment Portal +
    • Pay your invoice
    • Pay your retainer
« View All Publications

Buchalter COVID-19 Client Alert: OCC Proposes New Rule Defining “True Lender”

  • Download


July 20, 2020
Buchalter Client Alert

 

On July 20, the Office of the Comptroller of the Currency proposed a rule which, if finalized as a rule, would establish a new standard for when a national bank or Federal savings association (“bank”) is the “true lender” in a lending arrangement with a third party. Under the proposed rule, the bank is the lender in a loan transaction if either (1) the bank is the named lender in the loan documents at origination, or (2) the bank funds the loan at origination.  The proposal states that if one of these occurs, the bank is the true lender even if the loan is subsequently transferred.  Further, the proposal states that under the OCC’s recent rule regarding interest rate exportation for transferred loans, if the bank is the true lender, its interest rate exportation authority would continue to apply to the loan even after a transfer.

The proposal noted specifically that a bank must still comply with other applicable laws, including Federal consumer protection laws.

Comments on the proposal must be submitted by September 3.

A copy of the OCC’s proposal can be found here:

https://www.lexissecuritiesmosaic.com/gateway/OCC/News_releases/2020_nr-occ-2020-97a.pdf

Buchalter is a leading nationally recognized financial services law firm, having served large, medium and small financial institutions for over 90 years.  Our Financial Services Regulatory Industry Group and Mortgage Banking Industry Group provide counseling and analysis across the wide range of regulatory issues facing such institutions.

Share

Related Areas

  • Commercial Finance

Related Attorneys

  • Michael C. Flynn
Buchalter footer logo

Adam Bass, Buchalter President & CEO

  • About
  • Careers
  • News & Events
  • Subscribe
  • Denver
  • Los Angeles
  • Napa Valley
  • Orange County
  • Portland
  • Sacramento
  • Salt Lake City
  • San Diego
  • San Francisco
  • Scottsdale
  • Seattle
  • © Copyright 2023 Buchalter, A Professional Corporation
  • Privacy Notice
  • Notice at Collection
  • Do Not Sell or Share PI
Buchalter Communications

We love sharing our knowledge, but we don't want to inundate you. If you would like to receive communications from Buchalter, please highlight the text boxes below indicating which type of communications you would like to receive, and provide your name and email address. [Street address is only necessary for Points and Authorities.] We appreciate your interest in our work.

"*" indicates required fields

Type*
This field is for validation purposes and should be left unchanged.