States Challenge OCC’s True Lending Rule; OCC’s Position On Firm Ground

LexisNexis (March 15, 2021, 11:28 AM EDT) -- The dispute between states and the federal government regarding how to determine which entity—a bank or its lending partner—is the “true lender” recently entered a new phase. Seven states (California, Colorado, Massachusetts, Minnesota, New Jersey, New York, and North Carolina) and the District of Columbia (the “States”) joined to sue the Office of the Comptroller of the Currency (“OCC”) in an effort to undo the OCC’s recently issued final rule on National Banks and Federal Savings Associations as Lenders (the “Rule”), which specifies when a bank is the “true lender” of a given loan....