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CBAI Calls on the NCUA to Withdraw its Misguided Member Business Lending Proposal

In a comment letter to the National Credit Union Administration (NCUA), the Community Bankers Association of Illinois (CBAI) expressed its unequivocal objection to their unprecedented proposal, which would comprehensively rewrite the credit union member business lending (MBL) rule, and recommended its withdrawal.

The NCUA proposal would circumvent the plain language of the Federal Credit Union Act, strip away critical prudential safeguards, and create new exceptions to the MBL cap. The NCUA proposal amounts to an end-run around Congress by a “cheerleader” regulator that is captive to the most aggressive, multi-billion dollar credit unions.

Credit union MBL powers are highly controversial. Any sweeping changes to the MBL rule should invoke vigorous Congressional oversight, including hearings. If any form of this proposal is enacted it should trigger an immediate review of the credit union tax exemption. Read Comment Letter.

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CBAI Meets with Senate Banking Committee Member Joe Donnelly (D-IN)

CBAI Vice President Federal Governmental Relations, David Schroeder, participated in an outreach meeting with U. S. Senate Banking Committee member Joe Donnelly D-Aug15-Joe DonnellyIndiana) on August 12, 2015.

The meeting was arranged by CBAI member William Smith, General Counsel of HomeStar Bank and Financial Services in Manteno, and attended by Shawn O’Brien, Director of the National Bank of St. Anne. During the constructive meeting O’Brien and Schroeder emphasized the dire need for immediate and meaningful community bank regulatory relief, discussed the state of the current regulatory environment, and cited the importance of authorizing de novo banking charters to maintain a vibrant and growing community banking sector of the financial services profession.

CBAI thanks Senator Donnelly for meeting to discuss these topics of great interest to Illinois community banks.

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CBAI Attends FDIC’s Cybersecurity Awareness Presentation

Powerpoint Presentation Available

Members of the CBAI staff participated in the Federal Deposit Insurance Corporation’s Cybersecurity Awareness Presentation in Chicago on August 11. This informative two hour presentation is being conducted at various FDIC regional offices around the country to inform bankers about cybersecurity from the regulator’s perspective. See FDIC PowerPoint Presentation.

The presentation revealed that cyber threats climbed 48% in 2014 to 24.8 million incidents, a nefarious campaign of just 10 e-mails will yield a greater than 90% chance that at least one person will become prey to cyber criminals, and in 2014 there were 7,945 security vulnerabilities identified which is more than 22 per day – nearly one an hour!

The specific objectives of the presentation were to:

CBAI thanks the FDIC for offering this outreach meeting which provided important information to Illinois community banks to assist them in protecting their institutions from cybersecurity threats and complying with regulatory requirements.

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CBAI ACTION ALERT - Urge Congress and the NCUA to Halt the Latest Credit Union Power Grab

August 3, 2015

The National Credit Union Administration (NCUA), in an unprecedented move, recently proposed to significantly loosen constraints on member business lending for tax-exempt credit unions, completely sidestepping the statutory cap of 12.25 percent established by the United States Congress.

CBAI urges community bankers to send a customizable letter to Congress and the NCUA to express opposition to this plan, which would expand credit union more business lending authority and siphon loans from taxpaying community banks. Contact Congress and the NCUA Today.

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Community Bank Regulatory Relief Bills Advance in House Financial Services Committee

July 29, 2015 - The House Financial Services Committee advanced bipartisan legislation to relieve community banks from excessive regulation which will promote local economic growth. The six approved measures include provisions from ICBA’s Plan for Prosperity, a community bank regulatory relief platform backed by CBAI.

CBAI strongly supports efforts to advance bipartisan legislation which will relieve community bank overregulation for the benefit of their local customers and communities. Regulations that are tiered to bank size and complexity will help community banks make more loans, promote economic growth and create jobs in their local communities.

The following CBAI/ICBA-advocated bills were approved by the Committee:

  • Financial Institution Customer Protection Act (H.R. 766) – Protects financial institutions and their customers from Operation Choke Point. The bill passed on a vote of 35-19.
  • Portfolio Lending and Mortgage Access Act (H.R. 1210) – Gives Qualified Mortgage (QM) treatment to loans held in portfolio by the originator. The bill passed on a vote of 38-18.
  • Small Bank Exam Cycle Reform Act (H.R. 1553) – Provides an 18-month exam cycle for community banks with $1 billion or less in assets. The bill passed on a vote of 58-0.
  • Reforming CFPB Indirect Auto Financing Guidance Act (H.R. 1737) – Reforms the CFPB indirect auto lending compliance and the Equal Credit Opportunity Act. The bill passed on a vote of 47-10.
  • Financial Institutions Examination Fairness and Reform Act (H.R. 1941) – Creates a workable exam appeals process and common-sense standards for classifying loans. This legislation passed on a vote of 45-13.
  • Homebuyers Assistance Act (H.R. 3192) – Provides for a TILA-RESPA Integrated Disclosure safe harbor. This legislation passed on a vote of 45-13. 

CBAI and the ICBA will now focus on moving these bills to the House floor and pursuing House approval so they can then go to the Senate. CBAI appreciates the work and support of the House Financial Services Committee.

These positive actions are the result of intense efforts by CBAI and ICBA lobbyists and grassroots involvement of community bankers across America. They demonstrate that many lawmakers support regulatory relief for community banks, and momentum is growing for ultimate adoption and implementation.