Rule would also address states\' regulation of national banks
By MortgageDaily.com staff
8/8/2003

The Office of the Comptroller of the Currency (OCC) this week proposed a rule regarding predatory lending by banks.

The new rule would prevent national banks from making the foreclosure value of the property the main factor in a lending decision, a statement from the OCC said.

The proposal, if approved, would "add an explicit safety-and-soundness-based, anti-predatory-lending standard to the general statement of authority concerning real estate lending."

Also included in the proposal are clarifications on pre-emption. The OCC says the rules it is proposing would "provide more comprehensive standards regarding the applicability of state laws to lending, deposit-taking, and other authorized activities of national banks." The new rules would also help differentiate between state laws that are and are not usually pre-empted.

Comments about the proposal can be sent to the OCC. To be considered, they must be received by Oct. 6.

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