July 2, 2015
The Consumer Financial Protection Bureau (CFPB) has proposed a delay in the implementation of the new TILA-RESPA Integrated Disclosure (TRID) for two months until October 3, 2015. In a July 2, 2015 comment letter to the CFPB the CBAI supported a delay in the TRID implementation and also urged a period of restrained enforcement and liability (a clearly-defined grace period) for banks attempting to comply in good faith with the regulations between the proposed new effective date (October 3, 2015) through January of 2016. Read CBAI Comment Letter.
June 30, 2015
Strengthening the voice of community banks in federal policymaking is a policy priority for the Community Bankers Association of Illinois (CBAI). For too long Wall Street insiders have dominated this arena which is ill-advised as they represent a narrow, and often times flawed and biased perspective.
Illinois Congressman Mike Quigley (D-5), a member of the U. S. House Appropriations Committee’s Subcommittee on Financial Services & General Government, included the following requirement in a bill which recently passed the Appropriations Committee.
"The Committee is very interested in the Treasury’s efforts to collaborate with community banks that have less than $10 billion in total assets on relevant legislative and regulatory policy making decisions. The Department is directed to submit a report to the Committees on Appropriations of the House and Senate within 120 days of enactment of this Act detailing these efforts, as well as efforts to hire employees with a background and understanding of community banking."
CBAI appreciates Congressman Quigley’s support and looks forward to working with him on this and other issues of importance to Illinois community banks.
The United States Supreme Court has upheld the disparate-impact theory of discrimination, which holds a defendant liable for neutral practices that have a disparate impact on protected classes even where there is no intent to discriminate.
While CBAI disagrees with the Supreme Court’s interpretation of the Fair Housing Act, we do appreciate the high court’s limited application of the theory and its direction to lower courts to act promptly and “examine with care” plaintiff cases. The majority opinion made it clear that a disparate-impact case cannot rely on statistics alone and that the accuser must also cite the specific policy that caused the disparate result. According to the ruling, defendants have a good defense against disparate-impact claims if they have a legitimate public interest or business reason for their policies. The burden then shifts to the plaintiff to show there was a less discriminatory alternative that would achieve the same goal.
Community banks are fully committed to fair lending and have strong compliance systems in place, though the court’s ruling will likely promote litigation that can itself cause reputational damage. CBAI will work with the Independent Community Bankers of America and Congress to advance legislation to ensure that federal laws truly support fair and equitable mortgage lending for consumers and community banks alike. Read Supreme Court Ruling.
June 17, 2015
The Consumer Financial Protection Bureau (CFPB) has delayed implementation of the new TILA-RESPA Integrated Disclosure (TRID) by two months until October 3, 2015. The CFPB said it took the action due to an administrative error and to better accommodate consumers and providers.
On June 2, 2015 CBAI submitted a comment letter to the CFPB urging the Bureau to allow for a period of restrained enforcement and liability (a grace period) for community banks attempting to comply in good faith with the regulations between the [original] August 1st effective date and through year-end 2015.
While CBAI is pleased that the original extension date has been extended to October 3rd, we will none-the-less be advocating for an additional grace period which is not without precedent and will be beneficial to customers and community banks. Read June 2 CBAI Comment Letter.