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ARTICLE · 06 AUGUST 2021

Regulating Interest Rates In A Digital World

Morrison Foerster
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According to Maria, the industry views the rules as essential to banks' ability to sell and securitize loans.

United StatesFinance and Banking
Maria B. Earley
Maria B. Earley
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Maria Earley spoke to Reuters about the Federal Deposit Insurance Corporation's (FDIC) and Treasury Department's Office of the Comptroller of the Currency's (OCC) "valid when made" rules, which state that when a bank lends at a valid interest rate, the rate remains valid when the loan is sold to a nonbank.

According to Maria, the industry views the rules as essential to banks' ability to sell and securitize loans.

"You have to have secondary markets to keep credit flowing," Maria said. "Taking down 'valid when made' would severely disrupt that."

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