- Granting “Qualified Mortgage” (QM) status for portfolio mortgage loans by community banks (less than $10 billion in assets);
- Exempting certain community bank loans from escrow requirements (less than $10 billion in assets);
- Increasing exemption thresholds for Home Mortgage Disclosure Act (HMDA) reporting (500 open-end and 500 closed-end loans);
- Simplifying community bank capital requirements (less than $10 billion in assets);
- Increasing eligibility for a short-form Call Report to restore proportionality to community bank quarterly reporting (less than $5 billion in assets);
- Expanding eligibility for the 18-month regulatory examination cycle for community banks (less than $3 billion in assets);
- Easing appraisal requirements to facilitate mortgage credit in local communities;
- Exempting community banks from the Volcker Rule (less than $10 billion in assets);
- Expanding community access to the Federal Reserve’s Small Bank Holding Company Policy Statement to help build capital (less than $3 billion in assets); and
- Improving regulatory treatment of reciprocal deposits and certain municipal securities.
CBAI looks forward to working with Jerome H. Powell as the new Chairman of the Federal Reserve Board. President Trump nominated Powell on November 2, 2017, and he was sworn into office by the Fed’s Vice Chairman for Supervision, Randy Quarles, on February 5, 2018.
Powell has been a member of the Federal Reserve Board since May of 2012 when he was appointed to fill an unexpired term. He was reappointed in 2014 for a term ending in January of 2028. Powell succeeded Janet Yellen who served as Fed’s chair since 2014 and previously as vice chair. Powell brings to the position a wealth of experience in banking, finance and regulation with the Bipartisan Policy Center (D.C.), The Carlyle Group, and as Assistant Secretary and Undersecretary of the Department of Treasury (under President George H.W. Bush).
The Community Bankers Association of Illinois (CBAI) thanks Senator Orrin Hatch (R-UT), Chairman of the Senate Finance Committee, for questioning credit union expansion of powers and tax exemption in a letter to the National Credit Union Administration (NCUA). The three-page letter highlighted the limited reasons for Congress granting credit unions federal tax exemption (i.e., serving individuals of modest means and with a common bond), estimated the value of the tax exemption for 2017 at $2.9 billion, and stated that the loss of tax revenue requires close government oversight to ensure the limited purpose is being properly fulfilled. The letter specifically questions actions taken by NCUA that have relaxed field of membership requirements and lifted limits on other activity including business lending and other services that seem to go beyond the scope of their original mission. Read Senator Hatch’s Letter to the NCUA.
The letter concluded with a request for information and data, to assist Congressional committees in understanding the NCUA’s oversight of credit unions. CBAI looks forward to the NUCA promptly responding to Senator Hatch’s request for this important information to guide increased Congressional scrutiny of the unwarranted tax-exemption for credit unions.
February 6, 2018