Brown Threatens True-Lender Rule Reversal
Following OCC release of its final true-lender rule, Senate Banking Ranking Member Brown (D-OH) late yesterday said he would use every available legislative tool to overturn it.  This almost certainly includes use of the Congressional Review Act, which allows Congress to prevent a rule from taking effect by a joint resolution of disapproval.  Such a resolution must be passed within sixty legislative days of receipt by Congress or Federal Register publication, whichever is later.  Further, enactment requires Presidential signature.  When rules are transmitted or published within sixty “session days” of a Congress’s final adjournment, the clock resets for the incoming Congress through a look-back provision.  As a result, any CRA challenge from Sen. Brown will wait until after the election.  Without a Democratic sweep or Biden victory, a CRA resolution – which Democrats will surely offer no matter what – stands little chance; with one, it will almost surely succeed.