"APOR is baked into not only Dodd-Frank as a safe harbor against litigation which many lenders want to comply with and use for their business and pricing and risk but also there are a litany of 40 other statutes that are tied to APOR as it's described in Dodd Frank, over 27 states. Lenders frequently move ahead of formal rulemaking, Dunn added. You don't have to wait for the regulation to comply either, she said."
"From our perspective, we believe that technology transparency in markets, the ability of folks to hedge their risk and even internally to do their own (quality control) based on different benchmarks or tools to have healthy corporate governance inside a company, it can help them discover opportunities that they may not know they have. As the CFPB pulls back, states like California are asserting themselves more aggressively."
Federal benchmarks often serve as anchors for federal and state statutes, so CFPB staffing reductions and policy reversals risk cascading disruptions. The average prime offer rate (APOR) functions as a benchmark baked into Dodd-Frank as a safe harbor and is widely used by lenders for pricing, risk management, and compliance. Over 40 other statutes and more than 27 states reference APOR, amplifying systemic reliance on that benchmark. Lenders frequently adopt compliance practices before formal rulemaking. Technology transparency, hedging tools, and internal quality control based on varied benchmarks can improve risk management and corporate governance. As federal oversight pulls back, states such as California are layering additional protections and expanding regulatory authority through measures like Senate Bill 825 that strengthen the DFPI.
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