McHenry Applauds OCC Move to Foster Financial Technology, Provide Greater Financial Inclusion
Washington,
May 29, 2020 -
Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), issued the following statement after Acting Comptroller of the Currency Brian Brooks announced the OCC’s finalized Valid-When-Made rule:
“Acting Comptroller Brooks is wasting no time in fulfilling his pledge to foster financial technology. The regulatory uncertainty caused by the ‘Madden’ decision has driven lenders away and hurt the most vulnerable borrowers. The OCC’s finalized Valid-When-Made rule provides clear rules of the road for banks and non-banks, encouraging partnerships that will lead to improved access to credit for millions of Americans, particularly those most in need during this difficult time. I am glad to see Mr. Brooks move quickly to finalize this critical rule to harness the power of fintech partnerships to provide greater financial inclusion and spur innovation.”
Background: The effect of this rulemaking is to provide certainty that bank loans do not become invalid simply because they are transferred. That certainty is essential to innovation and competition in lending, the twin forces that lead to improved access to credit for millions of Americans.
Ranking Member McHenry has identified this rulemaking as a critical part of Republican’s regulatory rightsizing agenda and has pushed for this—and additional rules—to be finalized quickly to spur long-term and widespread economic recovery from COVID-19.
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