Following the OCC’s release of its proposed rule outlining that would resolve uncertainties by specifying that a bank partnering with a third party is the “true lender” if it is named as the lender in the loan agreement or it funds the loan (as of the date of origination), Online Lenders Alliance CEO Mary Jackson issued the following statement:
“Today’s move by the OCC is a logical and much-needed step towards promoting bank-fintech partnerships as a way to expand credit access and financial inclusion for millions of unserved or underserved credit customers. It is imperative that the final OCC rule permit flexibility so that the nonprime borrower will be included in the fintech evolution. For too long, these offerings have been a source of confusion, which has a chilling effect on credit for many—particularly those consumers with non-prime credit scores. By working to resolve that confusion, banks and fintech firms can work together to provide more, better, and safer options for consumers to choose from when seeking financial solutions.
“With the COVID-19 pandemic continuing to negatively impact many Americans across the country, clearing up these issues is more important than ever. We look forward to this rule continuing to move through the regulatory process.