Legal Seminar, Denver, CO

True Lender Doctrine: Legislation • In November 2017, Rep. Hollingsworth introduced the “Modernizing Credit Opportunities Act” (H.R. 4439) to address the true lender issue. – Would create statutory guidelines for when a financial institution may be considered the “true lender” to a transaction. – Amends the NBA, FDIA, HOLA, and FCUA to provide that interest rate exportation applies to a loan made by a bank where the bank is the party to which the debt is owed based on the terms of the loan regardless of any later assignment or an economic or service relationship between the bank and a third-party. • The bill has bipartisan support and was discussed at a hearing in January 2018. • In May 2018, CSBS wrote a letter opposing the bill on the grounds that that it would preempt state true lender laws and result in “rent-a-charter” arrangements. • No vote has been scheduled.

For Discussion Purposes Only

Fintech Charter

True Lender Doctrine

Madden v. Midland

Student Loan Servicing

For Discussion Purposes Only