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ARTICLE · 24 DECEMBER 2020

FDIC Questions Its Authority To Issue "True Lender" Rule

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The FDIC representative on the second panel was Leonard Chanin, Deputy to the FDIC Chairman.

United StatesFinance and Banking
Alan Kaplinsky
Alan Kaplinsky
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PLI held its two-day 25th Annual Consumer Financial Services Institute, which I co-chaired. During the morning session of the first day, I co-moderated two consecutive panel discussions titled "Federal Regulators Speak," with the first panel featuring CFPB and FTC representatives and the second panel featuring OCC and FDIC representatives. The FDIC representative on the second panel was Leonard Chanin, Deputy to the FDIC Chairman.

After the OCC representative discussed the OCC's "Madden-fix" and "true lender" rules, I asked Leonard why the FDIC has not yet issued its own "true lender" rule. Leonard responded that unlike the OCC which has statutory authority to determine when a loan is made by a national bank or federal savings association, the FDIC does not have similar authority under the Federal Deposit Insurance Act to determine when a loan is made by a state bank. According to Leonard, while the FDIC might be able to fill in certain "gaps," state law controls

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