OCC Further Clarifies Lending Preemption Regulation

The OCC issued a series of Interpretive Letters that further clarify the scope of its recent regulation (the "Preemption Regulation") (described in the January 13, 2004 Alert) concerning federal preemption of state lending laws (please click on 'Next Page' link at the bottom of this article to read this Alert). Letter 998 confirms that state anti-discrimination laws are not preempted across the board by the Preemption Regulation, but rather would be considered as to preemption on a case-by-case basis. As to which authority may enforce the anti-discrimination laws, Letter 998 provides that while the states may enforce many of such laws, the OCC would enforce laws relating to fair lending and redlining. To address concerns that the Preemption Regulation leaves consumers vulnerable to predatory lending practices, Letter 999 highlights the fact that national banks are subject to the unfair and deceptive acts and practices standards of the Federal Trade Commission Act, as well as specific