In an effort to address confusion over the “valid-when-made” doctrine, which prevents loan interest rates from being altered after changing hands, the Office of the Comptroller of the Currency (OCC) is seeking industry input on a proposed rule on the matter.
With the proposed rule, OCC hopes to clarify that when a national bank or savings association sells, assigns, or otherwise transfers a loan, the interest rate deemed permissible prior to the transfer of the loan remains permissible after the transfer is complete.
Learn more about the proposal and the uncertainty regarding the doctrine at its center.