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The Lasting Impact
The OCC’s legal strategy of declaring these models "functionally equivalent" to traditional loans served as a permanent blueprint for federal and state regulators (Chiu, 2006; Morales, 2015).

It established a regulatory environment where faith-based financial institutions could comfortably operate within conventional banking laws (Morales, 2015). It also signaled to secondary market giants like Freddie Mac that these contracts carried the same baseline safety, sound credit risk, and legal enforceable parameters as a typical American mortgage, paving the way for multi-billion dollar secondary market liquidity.

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References
Baxter, T. C., Jr. (2005). Regulation of Islamic financial services in the United States. Federal Reserve Bank of New York. Cited by: 5

Chiu, S., & Newberger, R. (2006). Islamic finance: Meeting financial needs with faith based products. Profitwise News and Views, Federal Reserve Bank of Chicago, 9–11. Cited by: 30

Morales, R. A. (2015). Islamic finance & markets 2016: United States. Crowell & Moring LLP. Cited by: 5