Barry Loudermilk: “I thank my friend and colleague from North Carolina for managing the opposition to this. Look, it is simple. The reason…”

“I thank my friend and colleague from North Carolina for managing the opposition to this. Look, it is simple. The reason we are here today is to debate the Democrats' latest episode in their anti-financial technology agenda, but also their rush to undo any policy of the previous administration, whether it was good or bad. Now, here are the facts: More than 30 percent of adults are unbanked or underbanked, 40 percent do not have enough savings to cover a $400 emergency expense, 42 percent have a subprime credit score and are rejected for bank loans at a rate four times higher than those with prime credit. Now, fintech has been instrumental in expanding access to credit for consumers who have little or no credit history. Online lending has grown to $90 billion a year. So what do consumers typically use these loans to pay for? Funerals, weddings, car repairs, and home improvement. Fintech is particularly important for minorities. In fact, fintechs were the top PPP lenders to Black-owned businesses and Hispanic-owned businesses during the pandemic. But there is an issue that has caused difficulty when banks and fintech companies partner to make loans, and that is the question of which entity is considered the true lender. Until recently, this question was attempted to be settled in a series of confusing and conflicting lawsuits. The courts are divided on it. But, last year, the OCC finalized a rule to provide much-needed certainty.…”