In the first case decided on the issue of whether Madden v. Midland Funding, LLC is applicable to a credit card securitization, the United States District Court for the Western District of New York, on September 21, 2020,...more
On July 20, 2020, the Office of the Comptroller of the Currency (OCC) issued its anticipated notice of proposed rulemaking on how to determine when a national bank or federal savings association (referred to collectively as a...more
The OCC’s new rule titled “Permissible Interest on Loans That Are Sold, Assigned, or Otherwise Transferred” (the Permissible Interest Rule) states that a national bank “may transfer a loan without impacting the permissibility...more
On September 10, the FDIC and the OCC jointly submitted an amicus brief to the U.S. District Court for the District of Colorado in support of the appellee debt buyer in In re Rent-Rite Super Kegs West Ltd. ...more
9/19/2019
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Valid When Made Doctrine
A careful parsing of state laws should be done if a lender is relying on a choice of law to avoid states that have criminal usury statutes.
On February 27, the U.S. District Court for the Southern District of New York...more
3/8/2017
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National Bank Act ,
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Usury
The Solicitor General’s brief argues the Second Circuit’s holding was incorrect, but does not recommend a grant of certiorari.
On May 24, the U.S. Solicitor General and the Office of the Comptroller of the Currency...more
9/6/2016
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Consumer Lenders ,
Financial Services Industry ,
Interest Rates ,
Madden v Midland Funding ,
National Bank Act ,
OCC ,
Online Marketplace Lending ,
Preemption ,
SCOTUS ,
Solicitor General ,
Usury
Regardless of whether or not Midland’s case is successful at the district court, there are a number of reasons why the Second Circuit’s Madden decision is not as disastrous as some have portrayed it to be.
On June 27,...more
7/8/2016
/ Banking Sector ,
Consumer Financial Products ,
Consumer Lenders ,
Debt Buyers ,
Financial Services Industry ,
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Lending Club ,
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Online Marketplace Lending ,
Petition for Writ of Certiorari ,
SCOTUS ,
Solicitor General ,
Usury ,
Valid When Made Doctrine
The U.S. Supreme Court will likely consider whether to grant or deny certiorari in the Madden v. Midland Funding case at its June 23 conference. In addition, Midland filed a supplemental brief with the Supreme Court on June 7...more
While far from certain, this development shows that the Supreme Court is interested in the case and will likely give weight to the Solicitor General’s recommendation as to whether the Second Circuit’s ruling should be...more
Whether this new approach is accepted by other marketplace lenders who collaborate with banks to originate loans will be something to keep an eye on going forward.
Lending Club filed its revised Loan Receivables and Sale...more
The new partnership structure will ensure WebBank is financially invested in the loans it originates, continues to have an ongoing contractual relationship with the borrower, and that the economics of the bank are tied to the...more
The certiorari petition asks the court to address whether the National Bank Act continues to have preemptive effect after the national bank has sold or otherwise assigned a loan to another entity.
In a petition for a...more