With help from Ballard Spahr colleagues Mindy Harris and Ron Vaske, I have now completed a months-long project in updating and expanding a 2017 White Paper addressing bank-model lending—programs involving partnerships between banks (or savings associations) and fintech or other nonbank companies in the interstate delivery of loans.

The new White Paper, which runs 49 pages single-spaced, is designed to serve as a comprehensive survey of laws, cases and regulatory attitudes addressing bank-model lending.  It costs $7,500 and covers:

  • the statutes and cases providing the legal framework for the nationwide “exportation” of interest charges under bank-model lending programs;
  • cases supporting and rejecting “true lender” attacks on bank-model programs;
  • Madden and subsequent developments, including OCC and FDIC rules rejecting its conclusion that a nonbank loan purchaser loses the usury authority of the bank selling it loans;
  • potential Maryland and other licensing attacks on bank-model programs;
  • an analysis of the parties posing risks for these programs, including risk rankings of the states of greatest concern (with explanations); and
  • risk factors, risk mitigants and risk reduction measures.

The Table of Authorities in the White Paper contains hyperlinks to all relevant authorities cited in the White Paper.

Banks and companies interested in purchasing the White Paper should contact Jasmine Loftland at 215.864.8610 or loftlandj@ballardspahr.com.