Insights / eventsInsights
Insights / events

Presentation

FinTech Bank Program Legislation, Actions, and Collateral Damage

Read Time: 1 min

What is the future of FinTech bank partner programs in light of new state legislation and enforcement, as well as the challenges to the valid-when-made rule and “demise” of the true lender rule? Does a new trend of state true lender legislation create a serious challenge to the programs? And how do these programs, and the regulatory response to them, impact banks that are not party to any bank partner programs? 

On Monday, October 25, 2021, Sarah Edwards (New Orleans), Arthur Rotatori (Cleveland), and Robert Savoie (Cleveland) discussed these questions and more during a webinar for the San Francisco Bank Attorneys Association.

Insights

Published Article

FinTech Regulation: How True Lender, Valid-When-Made, and the Fight About Usury Impact FinTech Business Models

April 27, 2022

The laws governing FinTechs have continued to develop. One prominent business model utilized by FinTech companies involves partnerships with traditional depository institutions, often state-chartered, FDIC-insured community banks. In the context of this model, the non-depository FinTech companies and traditional depository institutions act together to offer consumer financial services and products.

News Release

Aaron Kouhoupt Returns to McGlinchey as Member in Consumer Financial Services Compliance Group

April 7, 2022

McGlinchey is pleased to announce that Aaron Kouhoupt has rejoined the firm as a Member (Partner) in the national Consumer Financial Services Compliance practice group. Aaron focuses on advising traditional banks as well as fintech start-ups navigating the federal regulatory regime surrounding bank partnership programs and launching consumer finance products on a national scale.

Deep Dive into Consumer Finance

Podcast: BSA, OFAC, KYC, and CIP – What do they mean to me?

September 15, 2021

The Bank Secrecy Act and parts of the U.S. Patriot Act's OFAC requirements have seemingly similar goals: to prevent money laundering and the funding of terrorist activities. Yet a lively debate surrounds which entities are covered by these acts, what the acts stipulate, and what entities must do to comply with them.

Alert

U.S. House of Representatives Votes to Override OCC True Lender Rule

June 25, 2021

The U.S. House of Representatives on June 24th voted 218 to 208 to repeal the OCC “True Lender” rule under the CRA. As discussed in earlier alerts, the OCC published the rule last year to eliminate challenges regarding when a loan is actually made by a federally-chartered bank, instead of a non-bank partner that takes assignment of the loan shortly after origination.

Alert

True Lender Update: States vs. OCC; No FDIC Rule; Possible State True Lender Rules?

January 15, 2021

For national banks, the OCC’s true lender rule became effective on December 29, 2020. However, as expected, the Attorneys General of New York, California, Colorado, the District of Columbia, Massachusetts, Minnesota, New Jersey, and North Carolina (the States) filed a federal lawsuit in New York shortly after the new year alleging that the OCC’s True Lender rule is invalid.

Alert

OCC Issues Final Rule on True Lender

November 4, 2020

The Office of the Comptroller of the Currency (OCC) issued a final rule last week to establish a “simple, bright line test” to determine when a national bank or federal savings association is the true lender. Under the rule, a bank is the true lender and makes a loan if, as of the date of origination, it (1) is named as the lender in the loan agreement or (2) funds the loan.