McHenry: The True Lender Rule is Good, Bipartisan Policy That Provides Clarity to Banks and FinTechs
June 24, 2021 -
Today, the top Republican on the House Financial Services Committee, Patrick McHenry (NC-10), spoke on the House floor in opposition to Democrats’ move to use the Congressional Review Act (CRA) to rescind the Office of the Comptroller of the Currency’s (OCC) True Lender rule. House Democrats’ politically motivated action would make financial services more expensive and less accessible, especially for low-income and minority consumers and businesses.
Watch Republican Leader McHenry’s remarks here or by clicking the image above.
Read excerpts from Republican Leader McHenry’s remarks as prepared for delivery:
“Madam Speaker, earlier this week, President Biden met with financial regulators. From the four-sentence recap released by the White House, we know one of the topics they discussed was ‘promoting financial inclusion and responsibly increasing access to credit’ end quote.
“Unfortunately, House and Senate Democrats don’t seem to be on the same page as the Biden Administration.
“The resolution we’re considering today would actually make financial services more expensive and credit less available to consumers and small businesses across the country.
“So why are my Democrat colleagues strong arming S.J. 15 through Congress?
“Well, the answer’s pretty simple: it’s politics.
“Let’s call this what it is – it’s Blue states and their left wing “consumer protection’ advocates who want to again limit the reach of national banks and their partnerships under the guise of ‘consumer protection laws.’
“Democrats are more interested in scoring political points with left-wing activists than supporting the borrowers and small businesses that the OCC’s True Lender Rule helps.
“And above all else, my colleagues across the aisle see this as an opportunity to rebuke the previous administration simply because they didn’t like the President.
“Well, I’d like to remind my friends that it was the Obama Administration who supported the risk-management principles underlying the True Lender Rule.
“So once again, we have the opportunity to come together to support good bipartisan policy, but Democrats would rather go-it-alone to appease the ‘woke’ left.
“In October of last year, the OCC finalized the True Lender Rule. This was the second step in a decades long process to clarify the bank-third party relationship when issuing a loan.
“This legal clarity fosters bank and fintech partnerships to provide their customers with the financial products they want and need.
“Consider this, according to the New York Fed, one in four Black-owned firms used fintech to seek PPP loans.
“Technology helps create greater financial inclusion. Why are Democrats so afraid of technology and innovation?
“Per usual, my Democrat colleagues are willing to ignore facts in favor of myths that back up their preferred narrative.
“So, House Democrats are going to ram through this resolution using a wonky, backdoor, procedural method—just like they’ve done with reconciliation and want to do with the elimination of the filibuster in the Senate—all so the American people don’t know the truth.
“The True Lender Rule was not some sinister plan by the previous Administration to trick borrowers. It is good, bipartisan policy that provides clarity to banks and fintechs so they can better serve their customers. That’s it.
“If Democrats are serious about ‘promoting financial inclusion’ as the Biden Administration stated this week, they sure have a funny way of showing it.”
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