OTS Pre-Empts New York Law
The Office of Thrift Supervision has pre-empted New York state's anti-predatory lending law so that federally chartered thrifts and their operating subsidiaries will not be bound by the state's lending restrictions.
"Federal law authorizes OTS to provide federal savings associations with a uniform national regulatory environment for their lending operations," OTS director James Gilleran said last week.
"By requiring federal thrifts to treat customers in New York differently, the New York law would impose increased costs and undue regulatory burden."
OTS has also pre-empted Georgia's law and the Comptroller of the Currency was expected to follow suit and issue a similar pre-emption for national banks. However, an OCC spokesman said, "We have not received a request to look into those issues."
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