Has OCC Pre-emption Gone Too Far?

Sen. Larry Craig, R-Idaho, says he is concerned that the comptroller of the currency may have "gone too far" in pre-empting the states' ability to supervise mortgage companies that are subsidiaries of national banks."If the impact of those regulations [is] as sweeping as the director of finance in Idaho says they are, then I think maybe that is going too far," Sen. Craig said after conducting a hearing on ways to protect the elderly from predatory lending. Sen. Craig chairs the Senate Special Committee on Aging. Idaho banking superintendent Gavin Gee testified that mortgage lenders traditionally licensed and supervised by the state are becoming subsidiaries of national banks and turning in their state lending licenses. "We are being pre-empted from taking any kind of enforcement action against those entities or responding to consumer complaints," Mr. Gee told the special committee. After the hearing, the Idaho senator told reporters he will demand a meeting with the comptroller to learn more about the new pre-emption rules. Then he plans to consult with Senate Banking Committee Chairman Richard Shelby, R-Ala., to "see where we go with this."