WASHINGTON—NAFCU has joined with several other financial services industry trades to reiterate concerns to the Office of the Comptroller of the Currency (OCC) about its novel bank licensing approach and urged the agency to withdraw a recent interpretive letter and reconsider three conditionally-approved trust charters.
NAFCU said it and the trades in the letter to the OCC have consistently called on the OCC to provide a transparent charter process, including longer public comment periods on the applications to ensure proper oversight.
In the letter, the groups detailed the Biden administration's desire for agencies to freeze recent regulations and review them – the OCC made significant policy changes to the eligibility requirements of a trust charter through Interpretive Letter 1176 in the final days of the Trump administration.
"That change has already, and will continue to facilitate, charter approvals that we believe are ill considered," the groups wrote, referencing the OCC's interpretive letter. "Our organizations oppose the circumstances under which these applications are being submitted, evaluated, and even conditionally approved. Further, we believe these legal interpretations, which were undertaken without notice and comment, are covered by the spirit of the [Biden administration's] Memo and therefore the policies and these charter applications should be held for additional scrutiny consistent with the Biden administration’s policy.
Significant Changes Urged
"Significant policy changes such as those contained in Interpretive Letter 1176 should be enacted only after a transparent public notice process has been completed," the groups continued.
The trades also noted the Federal Reserve is currently seeking feedback on fintech banks' access to the central bank's accounts and services because of the risks posed to the financial system. The groups reiterated that the OCC should reconsider the policy changes made by the interpretive letter in a "thorough and transparent analysis by all interested stakeholders."