Providing for Congressional Disapproval of the Rule Submitted By the Office of the Comptroller of Currency Relating to ``National Banks and Federal Savings Associations As Lenders''

Floor Speech

BREAK IN TRANSCRIPT

Mr. LUETKEMEYER. Madam Speaker, I rise today to discuss S.J. Res. 15, House Democrats' attempt to limit the ability of our Nation's banks to serve consumers by overturning the true lender rule.

The true lender rule was finalized by the OCC in 2020, in an effort to clarify who was the true lender in national bank third-party relationships. By providing this clarity, these third-party entities were able to provide financial services in partnership with financial institutions with the protections of legal precedence.

Partnering with third parties like fintechs gives financial institutions the ability to increase access to credit, especially for low- and moderate-income consumers and small businesses.

Unfortunately, the bill before us is nothing more than a politically motivated attempt by Democrats to make it more expensive and difficult for banks to serve customers, and its passage will have long-term consequences.

According to the Congressional Review Act, if this legislation is passed, the OCC will not have the ability to issue a similar rule down the road. This will leave bank-fintech partnerships in limbo with a great deal of uncertainty regarding the loans they make and who is the true lender in the relationship.

Democrats are constantly putting their disdain for America's banks ahead of the needs of their constituents, and this bill is another prime example of this unfortunate practice.

I firmly oppose this bill and its prevention of widespread financial inclusion, especially for low- and moderate-income consumers.

BREAK IN TRANSCRIPT

Source