OCC Proposes Rules to Allow Greater Business Flexibility to Federal Savings Associations

The Office of the Comptroller of the Currency ("OCC") proposed rules that would enable federal savings associations to adapt more easily to new economic conditions and business environments without changing their charters.

Pursuant Section 5 of the Home Owners' Loan Act - created by the Economic Growth, Regulatory Relief, and Consumer Protection Act - the OCC must issue new regulations that will allow federal savings associations with total consolidated assets of $20 billion or less (as of December 31, 2017) the option to elect to operate as a covered savings association. Such federal savings associations that elect to operate as covered savings associations are subject to the same rights, privileges, duties, restrictions, penalties, liabilities, conditions and limitations that apply to a national bank without having to convert their charters.

The OCC will solicit comments on the proposed rule for 60 days after its publication in the Federal Register.