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CBAI Asks Regulators to Consider Combined Regulatory Impact on Community Banks

In a letter to the regulators, CBAI raised concerns about the intended and unintended consequences of regulations promulgated by multiple agencies to address the same regulatory concerns. CBAI is concerned that the increased capital required under Basel III, higher proposed FDIC assessments, expected increases in ALLL from the CECL, increased disallowance of “excess” ALLL, and the increased QM and TRID compliance burden will make commercial and real estate lending overly burdensome, prohibitively costly, and harmful to community banks, the financial system and our economy. CBAI requested assurances from Chair Yellen, Chairman Gruenberg and Comptroller Curry that the regulators are frequently and rigorously communicating and coordinating their activities, and considering the combined impact of their individual rulemaking. Read Letter to Regulators.

November 13, 2015

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CBAI Urges Regulators to Reduce Call Report Burden

In a comment letter dated November 12, 2015, CBAI responded to the Federal Reserve Board, Federal Deposit Insurance Corporation and the Office of Comptroller of the Currency regarding a FFIEC-approved proposal, and called for meaningful regulatory relief for community banks by streamlining the Call Report and providing a short-form version of the Call Report for the quarters ending March and September.

Regulatory relief for community banks must be the Agencies number one priority. Regulatory burden has increased as a result of the financial crisis and the resulting avalanche of regulation is causing community bankers to focus more on regulatory compliance than serving their customers and communities. The Agencies' current efforts at meaningful regulatory relief are insufficient and much more needs to be accomplished. Every opportunity needs to be embraced by the Agencies to reduce the massive and growing regulatory burden on community banks including Call Report regulatory relief. Read Comment Letter.

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U.S. House Passes Highway and Transportation Funding Bill Without Harmful Federal Reserve Stock Dividend Cut

The United States House of Representatives approved the highway and transportation funding legislation with two CBAI and ICBA-advocated amendments blocking a backdoor tax hike on members of the Federal Reserve System and advancing community bank regulatory relief. Following the vote, ICBA called on the House and Senate to include these amendments in any final highway and transportation legislation they send to the President.

An amendment from Congressmen Randy Neugebauer (R-TX) and Bill Huizenga (R-MI), which passed by a wide bi-partisan vote of 354-72, would remove a Senate-passed 75 percent cut to dividends paid on Federal Reserve Bank stock. CBAI thanks House members who voted in favor of the Neugebauer-Huizenga Amendment, including Illinois’ Mike Bost (R-12), Cheri Bustos (D-17), Danny Davis (D-07), Rodney Davis (R-13), Robert Dold (R-10), Tammy Duckworth (D-08), Bill Foster (D-11), Randy Hultgren (R-14), Robin Kelly (D-02), Adam Kinzinger (R-16), Darin LaHood (R-18), Dan Lipinski, (D-03), Mike Quigley (D-05), Peter Roskam (R-06), Jan Schakowsky (D-09), and John Shimkus (R-15). Illinois members Luis Gutierrez (D-04) voted “No’ and Bobby Rush (D-01) was “Not Voting”.

Another amendment, which was offered by House Financial Services Chairman Jeb Hensarling (R-TX) and passed on a voice vote, included 15 measures that already passed the House with broad bi-partisan support, included several provisions from ICBA’s Plan for Prosperity. Specifically, the Amendment included CBAI and ICBA support provisions to eliminate redundant privacy notice requirements, expand the 18-month exam cycle and allow thrift holding companies to take advantage of beneficial SEC registration thresholds.

The CBAI and ICBA-advocated amendments passed following strong grassroots efforts by community bankers, though their continued advocacy will be needed as the House and Senate work to resolve differences between their conflicting versions of the bills.

November 6, 2015

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U.S. House Votes Overwhelmingly to Delay TRID Liability

The United States House of Representatives voted overwhelmingly (303 to 121) in favor of the Homebuyers Assistance Act (H.R. 3192), despite the threat of a Presidential veto. This legislation will provide a reasonable hold-harmless period for enforcement of the of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures (TRID) regulation for those that make good-faith efforts to comply.

While CBAI appreciates the Bureau’s representation that it will be sensitive to the progress made by those institutions that make good-faith efforts to comply, at the same time, community banks needs more certainty that their good-faith efforts to comply will not expose them to harmful litigation.

CBAI thanks the following Illinois members of the House for voting in favor of this important legislation which now goes to the Senate for consideration - Mike Bost (R-12), Cheri Bustos (D-17), Rodney Davis (R-13), Robert Dold (R-10), Bill Foster (D-11), Randy Hultgren (R-14), Adam Kinzinger (R-16), Darin LaHood (R-18), Dan Lipinski, (D-03), Mike Quigley (D-05), Peter Roskam (R-06), and John Shimkus (R-15).

 October 7, 2015