Nationwide Interest Rates
As recommended by the Treasury Department,1 the OCC and FDIC have proposed rules to overturn a controversial court decision limiting the extent to which national banks can export home-state interest rates and state banks may similarly take advantage of national markets. If finalized, the rules would clarify the ability of covered banks to securitize and otherwise sell loans as has long been the practice and reduce one obstacle to business alliances with nonbanks in the “rent-a-bank” arrangements that have more recently become a vehicle for fintech, short-term installment lenders, and other nonbanks seeking to operate under uniform and/or preferable interest rates regardless of otherwise-applicable state usury ceilings.