[Federal Register Volume 86, Number 148 (Thursday, August 5, 2021)]
[Rules and Regulations]
[Page 42686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16619]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 7

[Docket ID OCC-2020-0026]
RIN 1557-AF11


National Banks and Federal Savings Associations as Lenders

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Final rule; Congressional Review Act revocation.

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SUMMARY: Under the Congressional Review Act (CRA), Congress has passed 
and the President has signed a joint resolution disapproving the Office 
of the Comptroller of the Currency's (OCC) final rule titled ``National 
Banks and Federal Savings Associations as Lenders.'' This final rule 
established a test to determine when a national bank or Federal savings 
association (bank) makes a loan and is the ``true lender,'' including 
in the context of a relationship between a bank and a third party, such 
as a marketplace lender. Under the joint resolution and by operation of 
the CRA, this rule has no legal force or effect. The OCC is hereby 
removing it from the Code of Federal Regulations.

DATES: This action is effective August 5, 2021.

FOR FURTHER INFORMATION CONTACT: Andra Shuster, Senior Counsel, Karen 
McSweeney, Special Counsel, Alison MacDonald, Special Counsel, or 
Priscilla Benner, Senior Attorney, Chief Counsel's Office, (202) 649-
5490, Office of the Comptroller of the Currency, 400 7th Street SW, 
Washington, DC 20219. For persons who are deaf or hearing impaired, TTY 
users may contact (202) 649-5597.

SUPPLEMENTARY INFORMATION: On July 22, 2020, the Office of the 
Comptroller of the Currency (OCC) published in the Federal Register a 
notice of proposed rulemaking proposing a test to determine when a 
national bank or Federal savings association (bank) makes a loan and is 
the ``true lender'' (85 FR 44223). The OCC published the final rule, 
titled ``National Banks and Federal Savings Associations as Lenders'' 
and codified at 12 CFR 7.1031, in the Federal Register on October 30, 
2020 (85 FR 68742). The final rule provided that a bank 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. The final rule became effective 
on December 29, 2020.
    The United States Senate passed a joint resolution (S.J. Res. 15) 
on May 11, 2021 disapproving of the rule under the Congressional Review 
Act (CRA) (5 U.S.C. 801 et seq.). The United States House of 
Representative passed S.J. Res. 15 on June 24, 2021. President Joseph 
R. Biden signed the joint resolution into law as Public Law 117-24 on 
June 30, 2021. Under the joint resolution and by operation of the CRA, 
the rule has no legal force or effect. Accordingly, the OCC is hereby 
removing 12 CFR 7.1031 from the Code of Federal Regulations (CFR).
    This action is not an exercise of the OCC's rulemaking authority 
under the Administrative Procedure Act (APA) because the OCC is not 
``formulating, amending, or repealing a rule'' under 5 U.S.C. 551(5). 
Rather, the OCC is effectuating changes to the CFR to reflect what 
congressional action has already accomplished. Accordingly, the OCC is 
not soliciting comments on this action, nor is it delaying the 
effective date.

List of Subjects in 12 CFR Part 7

    Computer technology, Credit, Derivatives, Federal savings 
associations, Insurance, Investments, Metals, National banks, Reporting 
and recordkeeping requirements, Securities, Security bonds.

Office of the Comptroller of the Currency

    For the reasons set forth above, and pursuant to the CRA (5 U.S.C. 
801 et seq.) and Public Law 117-24, 135 Stat. 296, the OCC amends 12 
CFR part 7 as follows:

PART 7--ACTIVITIES AND OPERATIONS

0
1. The authority citation for part 7 continues to read as follows:

    Authority:  12 U.S.C. 1 et seq., 25b, 29, 71, 71a, 92, 92a, 93, 
93a, 95(b)(1), 371, 371d, 481, 484, 1462a, 1463, 1464, 1465, 1818, 
1828, 3102(b), and 5412(b)(2)(B).


Sec.  7.1031  [Removed]

0
2. Remove Sec.  7.1031.

Michael J. Hsu,
Acting Comptroller of the Currency.
[FR Doc. 2021-16619 Filed 8-4-21; 8:45 am]
BILLING CODE 4810-33-P