Valid-When-Made and True Lender Doctrines: Usury Issues With Partnerships Between Bank and Non-Bank Lenders
Recording of a 90-minute premium CLE video webinar with Q&A
The CLE webinar will analyze the valid-when-made and true lender doctrines and issues that can arise when banks and nonbanks enter partnerships to offer consumer loan products. The panel discussion will include the evolution of both issues under national banking laws, the Madden case, the 2020 OCC rules, and remaining controversies over applying these doctrines as indicated in recent case law.
- Background on valid-when-made and true lender doctrines
- Federal preemption of state usury laws
- Evolution of rent-a-bank and bank partnership arrangements
- True lender doctrine
- Dodd-Frank and OCC preemption powers
- State-chartered vs. national banks
- Madden v. Midland Funding
- OCC Final Rules regarding valid-when-made doctrine and true lender doctrine
- Application in recent case law
- Regulatory and licensing considerations for fintech companies
- Implications for banking partnerships going forward
The panel will review these and other vital issues:
- How have banks and their non-bank partners taken advantage of federal preemption of state usury laws?
- What was the impact of the Madden case and subsequent OCC regulations on the valid-when-made doctrine?
- To what extent has the true lender doctrine been contested by courts in recent litigation, and what has been the outcome?
- What steps can federal and state-licensed banks take when partnering with non-banks to ensure they comply with applicable usury laws?
Catherine M. Brennan
Ms. Brennan assists national and state banks, investment banks, commercial finance companies, savings associations,... | Read More
Ms. Brennan assists national and state banks, investment banks, commercial finance companies, savings associations, mortgage bankers and other licensed lenders in the development and maintenance of nationwide consumer mortgage and motor vehicle finance programs. She engages in consumer credit due diligence on behalf of investors of mortgage loan companies, mortgage loan servicers, Internet lenders, consumer finance companies, title loan companies and payday lenders.Close
Leah M. Campbell
Bradley Arant Boult Cummings
Ms. Campbell has significant experience representing financial services and insurance company clients in both federal... | Read More
Ms. Campbell has significant experience representing financial services and insurance company clients in both federal and state courts, as well as before state regulators. She has advised national mortgage servicers on FDCPA claims, loan finance companies on UDAAP claims, and banks on OFAC- related issues. In addition, Ms. Campbell has provided intellectual property guidance in M&A and corporate structuring matters and advised on GDPR implementation and cross-border encryption issues. Prior to joining the firm, she served as senior counsel in the Cyber/Intellectual Property/Information Technology group for Deutsche Bank AG.Close