The Office of the Comptroller of the Currency's (the OCC)
True Lender Rule is all but repealed. On May 11, 2021, the
U.S. Senate voted to approve a joint resolution to repeal the True
Lender Rule under the Congressional Review Act (the CRA). The
House is expected to pass the measure and the president has
expressed support for the resolution.
The eventual repeal of the True Lender Rule will likely affect
consumer lending. In today's consumer lending arena, a
bank may not be the funder of the loan. It is not uncommon
that the loan agreement names a national bank as the lender, with a
non-bank entity as the funder. The question then becomes
which entity is the “true lender.” Under the True
Lender Rule, the national bank is the lender because the loan
agreement identifies it as such. The “true
lender” designation is significant. If the “true
lender” is a national bank, then state usury laws generally
do not apply to the loan because the National Bank Act of
