The Structured Finance Association released the following statement after the Federal Deposit Insurance Corporation (FDIC) issued its final rule affirming the “valid-when-made” doctrine, a nearly 200-year-old principle in contract law.
SFA released a statement earlier today applauding Friday’s announcement from the Office of the Comptroller of the Currency on a final rule clarifying that “when a national bank or savings association sells, assigns, or otherwise transfers a loan, interest permissible before the transfer continues to be permissible after the transfer.”
This week the House Financial Services Committee and Senate Banking Committees held oversight hearings with Prudential Regulators. Perhaps the most contentious topic in the hearings was the FDIC’s and OOC’s recent proposed regulation in response to the valid-when-made doctrine and the Madden decisions.
The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) this week have proposed changes to rules that would reaffirm the power of national banks and federal savings associations, and state-chartered banks, respectively, to securitize, sell, assign or transfer loans without impacting the enforceability of the interest rate on a loan.
On Friday, October 4, SFA, jointly with BPI, served a joint amicus brief on the parties in Cohen v. Capital One, a case that was filed in the U.S. District Court for the Eastern District of New York on June 12, 2019.
On Tuesday, August 13th, SFA, jointly with BPI, filed a motion in the US District Court in the Western District of New York for leave to file an amicus brief in the matter of Peterson v. Chase Card Funding.