Washington,
D.C.
— TechNet, the national, bipartisan network of innovation
economy CEOs and senior executives, today commented on the introduction of the Modernizing Borrower Credit Opportunities
Act of 2017,
a bipartisan bill championed by Representatives Trey
Hollingsworth (R-IN), Alcee Hastings (D-FL), Blaine Luetkemeyer (R-MO), and
Henry Cuellar (D-TX).

The bill aims to
address ambiguities in existing law, which provides that banks may charge
interest on loans wherever they are made and at the rate allowed by the bank’s
home state. However, with growing
partnerships between banks and financial technology (fintech) companies, the current
law leaves unclear whether the bank is defined as the true lender. This bill would clarify the bank as the true
lender in these instances, and provide federal rate preemption — regardless of
whether they work with a fintech company in the origination or servicing of the
loan.

The following statement can be
attributed to Linda Moore, President & CEO of TechNet:

“This bill addresses an important
area of fintech policy that has emerged in recent years. Banks need to get back in the business of
lending, and fintech innovators have a key role to play.

“By achieving greater regulatory
clarity provided by this legislation, banks and fintech companies will be
better positioned to launch partnerships that help provide more accurate and
complete credit histories for many Americans and help responsibly provide them
with loans.
TechNet
applauds Representatives Cuellar, Hastings, Hollingsworth, and Luetkemeyer for
introducing this important legislation that promises responsible credit for
millions of American families.”