The acting head of the OCC, Brian Brooks, has openly discussed his support for clarity on the ”true lender” rule; yesterday, the OCC officially proposed a new rule that would resolve uncertainty over the issue of true lender once and for all; there has been uncertainty over who is the true lender when banks and third parties partner on facilitating access to affordable credit, something that most online lenders have been doing for years; the proposed new rule would resolve this uncertainty by specifying that a bank makes a loan and is the “true lender” if, as of the date of origination, it is named as the lender in the loan agreement or if it funds the loan; Congressman Patrick McHenry has been a big supporter of clarifying this rule and he issued this statement, “Today’s move by the OCC is another important step toward providing clarity to banks and non-banks on the ‘true lender’ doctrine. Clarity will foster greater innovation in financial services—ultimately leading to greater financial inclusion. Acting Comptroller Brooks has worked diligently on advancing financial technology and I applaud his swift action to address this uncertainty that hindered modernization.” Crowdfund Insider.
Peter Renton is the chairman and co-founder of LendIt Fintech, the world’s first and largest digital media and events company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series. Peter has been interviewed by the Wall Street Journal, Bloomberg, The New York Times, CNBC, CNN, Fortune, NPR, Fox Business News, the Financial Times, and dozens of other publications.