CBA Rips Anti-Pre-emption Effort

The Consumer Bankers Association is urging U.S. senators not to support legislative resolutions that would overturn the Office of the Comptroller of the Currency's pre-emption regulations.Two joint resolutions, sponsored by Sen. John Edwards, D-N.C., are "premised on a profound misunderstanding" of the OCC rules. "We urge you not to co-sponsor or otherwise endorse them," the CBA says in letters addressed to each of the 50 senators. The OCC rules " break no new ground," and they rely on principles of pre-emption that have been repeatedly upheld by the courts, according to the letters signed by CBA president Joe Belew. However, state officials are up in arms about the OCC's regulations, which effectively shield national banks and their mortgage subsidiaries from compliance with state consumer protection laws, including predatory lending laws and state enforcement actions. If the Senate Banking Committee does not approve the resolutions, Sen. Edwards will have to get 30 co-sponsors to force a vote by the full Senate.