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CFPB Releases Flowcharts to Navigate New Mortgage Rules

The Consumer Financial Protection Bureau has released several flow charts that offer a way to visualize how the new mortgage rules are likely to impact certain products or transactions in a variety of circumstances. (These charts are not substitutes for the regulation text and official interpretations, but they can provide an idea of where to start.)

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FHLB-Chicago and Ginnie Mae Offer New Mortgage Lending Option

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

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Another Compelling Case for Taxing Credit Unions

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.

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Illinois Congressmen Support the CLEAR Act

September 9, 2013

The Community Bankers Association of Illinois thanks Illinois Congressmen Rodney Davis (R-13th) and Mike Quigley (D-5th) for quigley davisstanding 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.

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ICBA President Cam Fine to Speak at CBAI Convention

Highlighting the Business Meeting Luncheon at CBAI’s 39th Annual Convention & Expo will be an address by Independent Community Bankers of America® (ICBA) President & CEO Camden R. Fine.

A passionate advocate for community bank issues for more than 20 years, Fine is recognized as the voice and face of community banking in Washington. He has been featured and published in The Wall Street Journal, The Washington Post, The New York Times, USA Today, and The Hill newspapers, and has made numerous appearances as guest host on CNBC’s “Squawk Box” and has appeared on CNN, MSNBC, Fox Business News, Bloomberg, PBS and NPR. He has been recognized by The Hill newspaper and CEO Update as one of Washington, D.C.'s most effective and influential trade association CEOs and lobbyists for five consecutive years.

A native Missourian and career community banker, Fine came to ICBA in May 2003. Prior to ICBA, Fine chartered and organized Midwest Independent Bank of Jefferson City, Mo., serving as its president and CEO for nearly 20 years. In addition, Fine owned Mainstreet Bank of Ashland, Mo., a $50-million-asset community bank.

Fine also has a strong background in government. In 1978, he joined the Missouri state government and in 1981 was appointed director of the State Division of Taxation. Under Fine’s leadership, ICBA has had a string of legislative and regulatory successes. These achievements include permanently raising deposit insurance levels to $250,000; broadening the deposit-insurance assessment base, saving community banks billions in insurance assessments in future years; enacting meaningful new restraints on too-big-to-fail institutions; and carving out community banks from several new fees and examinations in consumer-protection legislation. He currently serves on the President’s Committee of the World Savings Bank Institute headquartered in Brussels, Belgium.

During the Business Meeting Luncheon, CBAI members and guests will also hear from Association Chairman Rick Jameson, Morton, who will address key events during his term, and Incoming Chairman Bill Wubben, Apple River, will present his views on the community banking profession looking forward. CBAI President Bob Wingert will provide an Association update and his perspective on banking, CBAI Treasurer Gregg Roegge of Rushville will review the Association’s financial position, and Career Development Division Chairman Kim McKee of Hennepin will reveal the importance of developing the next generation of community bank leaders. The delegation also elects CBAI officers for the annual period commencing October 1, 2013.

Held at the Crowne Plaza in Springfield, the luncheon is scheduled for Friday, September 27, 2013, as is part of CBAI’s annual showcase event. For more information regarding CBAI’s 39th Annual Convention & Expo or to register, please click here.