In the October 30, 2020, Federal Register (85 FR 68742, click here) the Office of the Comptroller of the Currency (OCC) issued a final rule that amends 12 CFR part 7 by adding §7.1031 to establish when a national bank or Federal savings association makes a loan and is the “true lender,” including in the context of a lending relationship between a bank and a nonbank third party lender, such as a mortgage company. Under the final rule, a national bank or Federal savings association makes a loan if, as of the date of origination, it is named as the lender in the loan agreement or funds the loan.

 

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