- Small creditor qualified mortgages flowchart.
- Transaction coverage and exemptions for the 2013 mortgage origination rules.
- Comparison of the general Ability-to-Repay requirements with the requirements for originating Qualified Mortgage loans.
- Coverage of the Bureau’s 2013 mortgage servicing rules for loans and servicers.
September 9, 2013
The FHLB-Chicago recently announced a plan for the Bank to issue securities guaranteed by Ginnie Mae and backed by mortgages originated by member financial institutions. These MPF Government Mortgage-Backed Securities (MBS) will provide smaller institutions in particular a new option when creating mortgage products for their home buying customers. Lenders will be able to choose to retain or release servicing and will have a reliable channel for selling their loans without the low-volume hurdles originators face in today’s competitive market. READ RELEASE
September 9, 2013
In a recent article titled, "Tax Exemption for Credit Unions: An Unjustifiable $10 Billion Tax Expenditure," Kenneth Kies and Bert Ely present yet another compelling case credit unions to pay federal corporate income taxes.
Kies and Ely argue that credit unions have grown to control a significant segment of the financial service market and have moved sharply away from their original mission; however, unlike their direct competitors they do not pay corporate income taxes. The authors find no policy or economic justification for the credit union tax break which has been estimated by the Office of Management and Budget (OMG) to cost nearly $10 billion over the next five years. Credit unions have evolved to become financial institutions which provide services identical to taxpaying competitors. In order to level the playing field, all credit unions should pay taxes. READ MORE.
September 9, 2013
The Community Bankers Association of Illinois thanks Illinois Congressmen Rodney Davis (R-13th) and Mike Quigley (D-5th) for standing up in support of community bank regulatory relief. These Illinois Congressmen have joined a bi-partisan coalition of lawmakers to co-sponsor the Community Lending Enhancement and Regulatory Relief Act (CLEAR Relief Act of 2013, HR 1750).
Community bank’s face a regulatory burden that is completely out of proportion to their size, business model, or risk they pose to consumers or the financial system. Regulations disproportionally burden community banks because they cannot spread these costs over a large number of customers. Targeted and sensible regulatory relief will allow community banks to better serve their customers and communities.
The CLEAR Act provisions include:
- Provide QM status and escrow relief for community bank portfolio loans.
- Increase the small services exemption threshold.
- Create an independent appraiser exemption for loans of $250,000 or less.
- Eliminate the annual privacy notice requirement when a bank has not changed its policies.
- Exempt community banks (with assets less than $10 billion) from SOX 404(b) assessment and controls requirements.
- Increase the Small Bank Holding Company asset threshold from $500 million to $5 billion.
- Require the SEC to conduct a cost-benefit analysis regarding new or amended accounting principles.
- Coordinate compliance with OFAC programs regarding automated clearing house funds transfers from another financial institution.
Congressmen Davis and Quigley, thank you again for your support for Illinois community banks.