House to Vote on ‘Rent-A-Bank’ Rule Repeal

The House next week will consider a resolution that would rescind a Trump Administration rule by the Office of the Comptroller of the Currency that credit union trade groups contend allows predatory online lenders to “rent” a bank to evade consumer protection laws. “In order to rein in predatory lenders and ‘rent-a-bank’ schemes, S.J. Res. 15 would overturn a rule by the Office of the Comptroller of the Currency and allow states once again to regulate these lenders and protect consumers,” House Majority Leader Steny Hoyer (D-Md.) wrote in a letter to colleagues outlining the June House agenda. Republicans have

Senate Passes Resolution to Kill OCC ‘Rent-a-Bank’ Rule

The Senate on Tuesday passed a resolution that would rescind a Trump Administration rule that credit union trade groups say allows predatory online lenders to “rent” a bank to evade consumer protection laws.

The Senate passed the resolution 52-47; it now goes to the House. If the House passes it and President Biden signs it, the rule, issued by the Trump Administration’s Office of the Comptroller of the Currency, would be rescinded. In addition, the OCC would be prohibited from issuing a rule that would accomplish the same goal.

Harper’s Term Has Expired. Now What?

It may seem as if Todd Harper just joined the National Credit Union Administration board, but actually his term expired last month.

Harper, who now may be removed at any time by President Biden, said through a spokesperson that he intends to stay in his position as long as the president wants him to serve. So far Biden has given no indication that he wants to remove Harper, sources familiar with board operations said.

Comments Mostly Support NCUA’s Risk-Based Net Worth Rule

National Credit Union Administration Chairman Todd Harper thinks the proposed rule is “half-baked” but credit union trade groups are endorsing a proposal to increase the threshold for credit unions to be defined as “complex.” The proposed rule states that any risk-based net worth requirement would only apply if a credit union has more than $500 million in assets at a quarter’s end. The definition impacts the effect of the Risk-Based Capital Rule that goes into effect on Jan. 1, 2022.

After Two-Month Hiatus, Credit Union Trade PACs Resume Political Giving

The Credit Union National Association and the National Association of Federally-Insured Credit Unions stopped making campaign contributions after the insurrection at the U.S. Capitol, but will now resume them. CUNA was the 12th largest contributor to the 147 Senators and Representatives who objected to the counting of the electoral votes for Joe Biden, according to the Center for Responsive Politics.