The Texas House is considering a bill (HB 285 by Herrero) that would require creditors to abate collection of debts from guardsmen and reservists who are activated.  It only applies to pre-service debts, but it prohibits the creditor from accruing interest during the abatement period.  At a hearing before the Defense and Veteran Affairs Committee, IBAT (Neeley) suggested that the Servicemembers Civil Relief Act (SCRA) already provides adequate protection.  This same concept was floated last session.  At that time, IBAT surveyed its members to determine what processes were used to help out our troops.  Now we need to update that information with a new survey, which will determine current bank practices under the SCRA.  Your participation will help us accurately depict the commitment that community bankers have to our troops.

 

COMPLETE THE SURVEY

 

 

On Monday, the House Financial Institutions Committee heard HB 1555 by Pickett, which deals with credit card billing errors as to interest and fees.  The bill would give issuers 48 hours to respond with corrective action to complaints.  Neeley for IBAT and Heasley for TBA testified against the bill, explaining that the federal Credit Billing Practices Act (which is part of Truth in Lending) comprehensively deals with this area.  Also, it preempts state law—except to the extent that state law is more protective of consumers!  We have a call in to the Fed to get a ballpark idea as to whether or not preemption works on this one.

 

 

The Financial Institutions Committee also heard HB 716 by Solomons, which attempts to criminalize mortgage fraud.  Texas Mortgage Bankers Association (and Chairman Solomons) consider this legislation a high priority.  IBAT testified in support of the concept.  The bill needs some fine tuning (as noted by the author).  Opponents and concerned groups included the Texas Association of Realtors, Texas Land Title Association, appraisers, prosecutors and the Texas Association of Builders.  Commissioner Danny Payne presented an interesting power point on the issue.  It can be viewed at http://www.sml.state.tx.us/Mortgage%20Loan%20Fraud%20for%20Consumers.pdf .

 

 

On Thursday, there will be a “stakeholders” meeting on home equity.  Then, next week the House Financial Institutions Committee will be taking up HJR 72 by Solomons, the constitutional amendment intended to fix the ACORN and ag use valuation issues.  In addition, the committee will hear the public funds pooled collateral bill, HB 345 by Flynn.  The IBAT board has taken a position against this proposal which allows banks to deposit securities with the Comptroller of Public Accounts in a big pool that can then be used to collateralize public fund deposits. IBAT Directors fear that this pool will be manipulated by the mega banks to capture the public fund business, drying up this important source of liquidity for local banks.  Finally, the committee will hear HB 1795 by Veasey, which would allow participating institutions to allow customers to enter their PIN in reverse order and notify law enforcement of a security problem.  PULSE is providing input on this matter!  Watch for the details.

 

 

Meanwhile, legislators are cranking up the bill drafting machines, trying to get everything filed by March 9—the 60th day of the session.  After that, it takes an 80% vote to get permission to file!  Needless to say, we are reviewing beaucoup bills for the IBAT tracking report.  We follow hundreds of bills each session but only report on them as action occurs.  Why worry you needlessly?