OCC fintech charter expected to receive attention at April 15 House hearing on banking innovation

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On April 15, 2021, the House Financial Services Committee’s Subcommittee on Consumer Protection and Financial Institutions will hold a hearing titled, “Banking Innovation or Regulatory Evasion? Exploring Trends in Financial Institution Charters.”  A topic expected to receive attention at the hearing is the OCC’s decision to accept applications for special purpose national bank charters from non-depository fintechs.  While not mentioned in the Committee Memorandum, another topic that could receive attention at the hearing is the recently-introduced resolution under the Congressional Review Act to overturn the OCC’s “true lender” final rule.  The rule addresses when a national bank or federal savings association should be considered the “true lender” in the context of a partnership with a third party.

The scheduled witnesses include Brian Brooks, the former Acting Comptroller of the Currency.  The other scheduled witnesses are:

  • Raúl Carrillo, Deputy Director, LPE Project and Associate Research Scholar, Yale Law School
  • Erik Gerding, Professor of Law, University of Colorado Law School
  • Kristin Johnson, Asa Griggs Candler Professor of Law, Emory University School of Law
  • Carlos Pacheco, CEO, Premier Members Credit Union on behalf of National Association of Federally-Insured Credit Unions

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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