On April 15, 2021, the House Financial Services Committee’s Subcommittee on Consumer Protection and Financial Institutions will hold a hearing titled, “Banking Innovation or Regulatory Evasion? Exploring Trends in Financial Institution Charters.”  A topic expected to receive attention at the hearing is the OCC’s decision to accept applications for special purpose national bank charters from non-depository fintechs.  While not mentioned in the Committee Memorandum, another topic that could receive attention at the hearing is the recently-introduced resolution under the Congressional Review Act to overturn the OCC’s “true lender” final rule.  The rule addresses when a national bank or federal savings association should be considered the “true lender” in the context of a partnership with a third party.

The scheduled witnesses include Brian Brooks, the former Acting Comptroller of the Currency.  The other scheduled witnesses are:

• Raúl Carrillo, Deputy Director, LPE Project and Associate Research Scholar, Yale Law School
• Erik Gerding, Professor of Law, University of Colorado Law School
• Kristin Johnson, Asa Griggs Candler Professor of Law, Emory University School of Law
• Carlos Pacheco, CEO, Premier Members Credit Union on behalf of National Association of Federally-Insured Credit Unions