Last month, the Senate voted to rescind the “true lender” rule under the Congressional Review Act (CRA). The legislation has since gone to the House which is expected to block the rule as well. Additionally, Congress missed the legislative window under the CRA to block an earlier Office of the Comptroller (OCC) rule introduced during the Trump administration that similarly reinforced a legal principle that a bank loan is “valid when made.” This rule acknowledges that a loan’s interest rate permissible for a bank continues to be permissible after transferred to a non-bank. On June 2, Michael Hsu, appointed by the Biden administration as acting comptroller, suggested that the agency has no plans to unwind it either and that it currently is “not under review”.
SFA continues to encourage members of the House to vote against Senate Joint Resolution 15 if and when it should come to the floor for a vote. To read SFA’s letter of opposition to the House, click here.