Let me make it clear about OCC provides banking institutions green light to contend with payday loan providers

Let me make it clear about OCC provides banking institutions green light to contend with payday loan providers

Work of this Comptroller regarding the Currency is shaking up the realm of short-term lending by motivating banks to supply high-interest price loans to subprime borrowers as an option to payday loan providers.

In an important break from previous regulators, Comptroller Joseph Otting stated Wednesday which he desires banking institutions to originate loans of $300 to $5,000 to borrowers with FICO ratings of 680 or below, with few other parameters beyond “sound underwriting.” This new OCC instructions could start a $90 billion market to finance institutions.

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