In the wake of its final rule on the “valid-when-made” doctrine, the OCC has moved quickly to finalize its controversial proposal defining when a national bank or federal savings association (FSA) is a “true lender” for purposes of state usury ceilings and consumer protection. The final rule retains the proposed true-lender test based on the role of the bank at origination in terms of documentation and/or funding, clarifying that banks will be held accountable for all loans regardless of whether these are on behalf of or sold to a third party.
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