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Trade group for state regulators drops suit over Figure’s bank charter

Sumary of Trade group for state regulators drops suit over Figure’s bank charter:

  • State regulators have dropped a lawsuit challenging Figure Technologies’ bank charter application after the San Francisco fintech dropped a controversial element of its plan.
  • Figure, which offers mortgage refinancing loans and home equity lines of credit, had applied to become a national bank, but one that did not accept insured deposits and therefore would not need deposit insurance, during the waning days of the Trump administration.
  • If the Office of the Comptroller of the Currency had approved Figure’s original application, it would have allowed the company to obtain some of the key benefits of being a national bank, such as the ability to preempt state interest rate limits.
  • The Office of the Comptroller of the Currency was the defendant in a recently abandoned lawsuit over Figure’s effort to get a national bank charter.
  • Figure also would have been able to avoid certain obligations that typically apply to national banks, such as oversight by the Federal Deposit Insurance Corp.

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