US President Joe Biden has signed into effect the Senate and House of Representatives' joint disapproval of the Office of the Comptroller of the Currency’s 'true lender rule.'

Congress used its authority under the Congressional Review Act to rescind the rule, adopted in October last year, which would have made explicit the circumstances in which a national bank is considered to be the "true lender" in the "context of a partnership between a bank and a third party, such as a marketplace lender."

The rule dictated that a bank made a loan if, as of the date of origination, it was named as the lender in the loan agreement or funds the loan.

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