Democratic Senator Mark Warner has introduced a bill, S.1642, that would override the Second Circuit’s decision in Madden v. Midland Funding. (In Madden, the Second Circuit ruled that a nonbank that purchases loans from a national bank could not charge the same rate of interest on the loan that Section 85 of the
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Acting Comptroller Noreika confirms continued OCC interest in SPNB charter proposal for fintech companies; our thoughts on the need for an OCC rule
Acting Comptroller of the Currency Keith Noreika, in remarks on July 19 to the Exchequer Club, confirmed that the OCC is continuing to consider its proposal to allow financial technology (fintech) companies to apply for a special purpose national bank (SPNB) charter. Since the departure of the SPNB proposal’s architect, former Comptroller Thomas Curry, who…
House Appropriations Committee approves bill making CFPB reforms
By Barbara S. Mishkin on
Posted in CFPB General, CFPB Monitor
This past Thursday, by a vote of 31-21, the House Appropriations Committee approved the fiscal year 2018 Financial Services and General Government Appropriations bill. In addition to multiple provisions to reform the CFPB, the bill contains a provision intended to override the Second Circuit’s opinion in Madden v. Midland Funding. In Madden,…
House Financial Services Committee passes Financial Choice Act containing CFPB overhaul, significant changes to rulemaking process, codification of “valid when made” rule
By Barbara S. Mishkin on
Posted in CFPB Monitor, Federal CFS Monitor
Last Thursday, by a party-line vote of 34-26, the House Financial Services Committee approved the Financial CHOICE Act (H.R. 10) proposed by Committee Chairman Jeb Hensarling.
In addition to overhauling the CFPB’s structure and authority, the bill would make significant changes to the rulemaking process followed by the CFPB and other financial services…
Colorado regulator moves to dismiss complaints in bank-model dispute
Posted in State CFS Monitor
The Administrator of the Uniform Consumer Credit Code for the State of Colorado, Julie Ann Meade, has filed motions to dismiss the complaints filed in federal court by two state-chartered banks seeking to permanently enjoin enforcement actions brought by the Administrator against the banks’ nonbank partners. According to the complaints, these nonbank partners market…
More on Comptroller Curry’s remarks at LendIt USA conference
By Barbara S. Mishkin on
Posted in Marketplace Lending, Technology
In a recent blog post, Alan Kaplinsky and Scott Pearson wrote about the remarks made by CFPB Director Richard Cordray and Comptroller of the Currency Thomas Curry at the LendIt USA conference in New York City earlier this month. In the blog post, we expressed our strong disagreement with Comptroller Curry’s refusal to author…