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CBAI Urges the FHFA to Grant Additional Time to Comment on Proposed Rule

September 10, 2014

The Federal Housing Finance Agency (FHFA) has proposed significant revisions to Federal Home Loan Bank membership eligibility requirements. If adopted the Propose Rule would have a profound impact on the FHLB System, FHLBanks and FHLB members. A thorough analysis and in-depth discussion of the intended and unintended consequences of the Rule requires an extension of the proposed 60 day comment period. CBAI has submitted a formal request to the FHFA to extend the comment period by at least an additional 60 days.  Read CBAI Letter.

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CBAI Urges Federal Regulators to Ease Regulatory Burden

September 8, 2014

The Community Bankers Association of Illinois (“CBAI”) urged federal banking regulators to address outdated, unnecessary, or unduly burdensome regulation of community banks. In a recent comment letter on the review required by the Economic Growth and Regulatory Paperwork Reduction Act (“EGRPRA”), CBAI highlighted the need for tiered regulation and called on the regulators to encourage de novo bank formation, ease the quarterly Call Report burden, and increase the Small Bank Holding Company Policy Statement threshold to $5 billion (and allow small savings and loan holding companies to be covered by the Policy Statement). Read Comment Letter.

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CBAI FedPac Fundraiser – A Grand-Slam!

CBAI extends a BIG THANK YOU to the many bankers, associate members, and staff for stepping up to the plate and supporting CBAI FedPac!

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Nearly 50 FedPac supporters enjoyed an exciting bottom of the ninth St. Louis Cardinals’ victory over the Pittsburgh Pirates on September 3rd at Busch Stadium. It was a great opportunity to take off the banker pin-stripes, get comfortable, and have some fun. Many brought teammates which provided a great mix of veteran players and rookies that made this FedPac fundraiser another base-clearing home run!

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CBAI FedPac was created to enhance the voice of Illinois community banks in Washington, D.C. CBAI FedPac is an important tool for community bankers to exert a strong and proactive influence by supporting those Members of Congress who believe in our mission to compete and serve our communities and customers.

Participation in fundraisers like this event is an enjoyable and effective way to contribute to CBAI FedPac and get involved. CBAI sincerely thanks all of our team members for their contributions to CBAI FedPac.

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Governor Quinn Signs CBAI Initiative HB 4677

August 28, 2014

Governor Quinn signed into law HB 4677 (P.A. 98-1067) on Tuesday. HB 4677 is trailer legislation for a 2013 CBAI initiative (HB 1335/ P.A. 98-0387) that amended the “good funds” disbursement authorization provisions of the Title Insurance Act to allow financial institutions and title companies that know each other and both agree to use cashier’s checks, teller’s checks and certified checks as settlement funds in transactions greater than $50,000. At the request of the Illinois Land Title Association, HB 4677 removes the provision that the title company and financial institution be “known to each other” and adds a provision that in order to use cashiers, tellers or certified checks as settlement funds, the funds must be used to disburse a loan and closing costs funded by the financial institution. Finally, HB 4677 removes a sunset provision that would have repealed all the new changes to the statute.

HB 4677 will finalize changes that have been sought by CBAI for five years to amend the settlement funds section of the Title Insurance Act and allow financial institutions and title companies to agree to the use of funds other than wire transfers or collected funds in transactions greater than $50,000. This will allow for more flexibility for community banks and title companies and will reduce closing costs for consumers.

CBAI appreciates the hard work and effort by both of the sponsors, Representative Ron Sandack (R- Downers Grove) and Senator John Mulroe (D-Chicago). CBAI would also like to thank Governor Quinn for understanding the significance of this bill and community banking in Illinois.

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CBAI Leadership Bankers and Staff Meet with Senator Durbin

August 21, 2014

CBAI leadership bankers and staff met with Illinois Senator Richard Durbin on August 21st to discuss issues of importance to Illinois community banks. The Bank of Springfield hosted this roundtable discussion during the Senate’s August recess.

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CBAI thanked Senator Durbin for cosponsoring the Brown and Vitter Too-Big-To-Fail bill (S. 798) last year and for cosponsoring the Privacy Notice Modernization Act (S. 635) after meeting with CBAI in Washington D.C. this spring. The Privacy Notice Modernization Act eliminates the requirement that financial institutions mail annual privacy notices for most community banks. This legislation passed the U. S. House last year and CBAI urged Senator Durbin to press for passage in the Senate in the remaining months of the 113th Congress.

CBAI bankers expressed support for other legislation including:

    S. 1349 – the Community Lending Enhancement and Regulatory Relief Act of 2013 which will provide much needed regulatory relief for community banks particularly with respect to Qualified Mortgage status in the Ability-to-Repay rules for mortgages held in portfolio, and mortgage escrow and servicing requirements.
    S. 727 – the Financial Institution Fairness and Reform Act which establishes standards for regulators including firm deadlines for exit interviews and examination results, establishes a FFIEC Ombudsman separate from the prudential regulators, grants financial institutions the right to appeal material supervisory determinations, requires the Ombudsman to determine the merits of an appeal, and binds the agency after a hearing before an administrative law judge.
    S. 2252 – the Community Bank Preservation Act of 2014 amends the Federal Reserve Act to require membership on the Fed’s Board of Governors to include at least one person with a demonstrated experience working in or supervising community banks having less than $10 billion in total assets.
The wide-ranging discussion included legislation that will allow states to collect sales tax on internet sales; challenges in residential mortgage lending with all of the new regulatory requirements; the competitive tax and funding advantage of the Farm Credit System lenders and how they have long strayed from their original mission; and how to best address the needs of the un-banked and under-banked particularly with short-term, small-dollar-amount loans.

CBAI leadership bankers and staff thanked Senator Durbin and his capable staff for participating in this roundtable discussion.