In continuation of increased state efforts to regulate state-chartered banks and fintech partnerships,Oregon’s newly enrolled House Bill (HB) 4116 would enact an express “opt‑out” from a key provision of the Depository Institutions Deregulation and Monetary Control Act of 1980 (DIDMCA) for consumer finance loans made in Oregon. HB 4116 also updates licensing requirements and clarifies when Oregon law applies to remote and online loans. This Oregon development comes on the heels of the Tenth Circuit’s decision in Weiser upholding Colorado’s DIDMCA opt-out and holding that a loan is “made in such State” if either the borrower or lender is located in the opt-out state as discussed here. A petition for rehearing en banc has been filed in Weiser, and it remains unsettled where a loan is “made” for purposes of DIDMCA.

Rejection of DIDMCA § 521 for Consumer Finance Loans

If signed by the Governor, Oregon HB 4116 would amend ORS 725.015 to add the following policy declaration:

The Legislative Assembly hereby declares that this state does not want any of the amendments set forth in section 521 of the [DIDMCA] to apply to consumer finance loans made in this state.

Section 521 of DIDMCA empowers insured state banks to charge the interest allowed by the state where the bank is located, regardless of the borrower’s location and regardless of conflicting state law (i.e., “export” their home state’s interest-rate authority). By expressly stating that Oregon does not want those amendments to apply to “consumer finance loans made in this state,” the legislature is attempting to ensure that Oregon’s own interest rate limits govern such loans, rather than the rates otherwise federally authorized for state banks. A DIDMCA opt-out such as that passed in Oregon would not impact the rates applicable to loans originated by national banks because national banks are governed by the National Bank Act (which has no opt-out).

Expanded Reach to Remote and Online Lending

To support that policy, HB 4116 also tightens Oregon’s jurisdictional hook. A person is now expressly “subject to” the Consumer Finance Act if they make, or act as an agent, broker, or facilitator for, consumer finance loans of $50,000.00 or less to Oregon residents where, among other things, the borrower negotiates or enters into the contract while physically in Oregon or makes payments from an Oregon financial account.

Next Steps

HB 4116 would apply to consumer finance loans “made in this state” on or after its effective date, which is the 91st day after adjournment of the 2026 regular legislative session. We will continue to monitor HB 4116 and similar legislation from other states, such as the pending DIDMCA opt-out in Rhode Island (SB 2206), pending federal legislation to prohibit future DIDMCA opt-outs (SB 3889) and “true lender”/anti-evasion bills in Missouri (HB 3021), New York (A 10133) and Wisconsin (discussed here).