Will House Nix OCC Pre-emption?

Rep. Luis Gutierrez, D-Ill., and 29 co-sponsors have introduced two resolutions to overturn the Office of the Comptroller of the Currency's pre-emption rules.The OCC rules exempt national banks and their mortgage subsidiaries from compliance with state predatory lending laws, and they have sparked fierce opposition from state officials and consumer groups. "We have repeatedly asked the OCC to work with state regulators to achieve an arrangement that is in the best interest of protecting consumers," Rep. Gutierrez said. "Absent their willingness to do this, we believe that this legislation is the appropriate vehicle to safeguard consumers and stop the erosion of strong state laws that have been on the books for more than a century." Similar resolutions have been introduced in the Senate by Sen. John Edwards, D-N.C. A majority vote in the Senate and the House would overturn the OCC pre-emption rules. If successful, it would be the second time Congress has overturned a regulation since this special procedure was adopted in 1994.