IBAT, collaboratively with Texas Bankers Association (TBA) and Texas Mortgage Bankers Association (TMBA), filed a friend of the court letter with the Texas Supreme Court asking it to review a commercial loan case. InBankDirect Capital Finance v. Plasma Fab, a bank premium finance sub mailed a cancellation of insurance policy a day late but actually used its power of attorney to cancel and receive the return premium in accordance with the statutory time frame.
The appellate court held the lender to a standard of strict compliance and appeared to impose a fiduciary duty on the lender as to the POA. Actually, a POA in that situation is for the benefit of the creditor, allowing it to manage the collateral. The lending trade associations are concerned that this approach could be applied in all commercial transactions.
Many challenges and opportunities currently face the payments industry. SWACHA’s Executive Payments Summit is designed to elevate this conversation with the input of industry leaders and experts who are not only fostering change within electronic payments, but also providing knowledge to help others shape the future.
Sessions include the following topics:
- Cybersecurity Protection: Is It Moving Fast Enough?
- Charting a Path to Lift Off? Understand the Shifting Economic Winds
- Same Day ACH: Moving Payments Faster
- Leading Through Times of Change
Join SWACHA for this one-day event on November 5, 2015, 8 a.m.-4:45 p.m., at the Irving Convention Center in Irving, Texas. Registration and additional information can be found here.
Last week, IBAT President and CEO Chris Williston, along with the executives of Texas Land Title Association and Texas Bankers Association, signed an open letter to the U.S. House of Representatives in support for H.R. 3192 (Homebuyers Assistance Act). If passed and signed by the President, this legislation would provide a hold-harmless period until February 1, 2016 for mortgage lenders making a good-faith effort to comply with the CFPB's new TILA-RESPA Integrated Disclosure (TRID), which became effective last Saturday, October 3, 2015. The letter specifically recognizes Reps. French Hill and Brad Sherman for introducing the bipartisan legislation.
During the regulatory panel held at IBAT’s Convention two weeks ago, all of the representatives of the federal banking regulators (OCC, Fed and FDIC) said that until the end of the year they will focus more on the good-faith efforts community banks have taken to prepare for TRID rather than the results. On Friday, the FDIC confirmed its comments in guidance issued regarding its initial supervisory expectations with TRID. Lastly, on September 29, CFPB Director Cordray appeared before the House Financial Services Committee to say that the CFPB was not looking for perfection on day one. While these statements assure some level of regulatory relief, they do not lessen the possibility of litigation, which would likely cause unnecessary and costly delays for consumers, and a disruption of the housing market.
“Texas community banks and their settlement service providers have made good-faith efforts to comply with TRID by the implementation date, but they need time to test these efforts in real-world settings without the threat of litigation,” said Williston. “While we appreciate the regulators’ soft-landing approach to TRID, borrowers and the mortgage lending industry need the four-month hold-harmless provision of H.R. 3192 to openly test and tweak lenders’ and servicers’ good-faith efforts without fear.”
As reported in last week’s Bottom Line, IBAT joined the same associations on a letter regarding H.R. 3192 to House Financial Services Chairman Jeb Hensarling. IBAT encourages members to write and call your members of Congress and urge their support of H.R. 3192.
In a letter sent last week to Texas lawmakers serving on the House Ways and Means Committee, IBAT President and CEO Chris Williston and IBAT Executive Vice President Steve Scurlock urged opposition to a proposal to partially fund future highway spending by reducing the dividends paid on Federal Reserve stock.
“[This proposal] hits a large percentage of community banks at precisely the time they are struggling to keep up with a continuing avalanche of regulatory burden and costs emanating from a financial crisis they neither created nor profited from,” the letter said.
Williston and Scurlock further called the proposal “a tax on the financial sector to fund a completely unrelated aspect of government” and expressed belief that raiding Fed dividends would “further impact our already impaired ability to create economic activity and jobs through lending and investment in our communities.”
IBAT encourages members who live or work in the Congressional district of any of these members to follow up with personal letters urging opposition to this misguided proposal.
A full copy of IBAT’s letter can be found here.
As October is National Cybersecurity Awareness Month, President Obama issued a Presidential Proclamation that “called on the people of the United States to recognize the importance of cybersecurity and to observe the month with activities, events and training that will enhance our national security and resilience.”
Texas Banking Commissioner Charles Cooper echoed that sentiment when he said, “As a societal threat, we all have a civic duty to help reduce cyber risk. National Cybersecurity Awareness Month is an easy way for all of us to raise awareness of the threats and the measures needed to make cyber space safer.”
Many resources exist to help raise awareness among your employees and customers. State and federal bank regulators, as well as many other associations and organizations, offer cybersecurity information to be used and shared this month, as well as throughout the year.
- Texas Department of Banking’s Supervisory Memorandum about corporate account takeovers,
- ICBA’s cybersecurity tips for consumers and other cyber and data security resources,
- An FFIEC brochure for bank employees,
- FDIC’s Safe Internet Banking for customers,
- Stay Safe Online created by the National Cybersecurity Alliance offers resources for teaching online safety to businesses and consumers and
- STOP. THINK. CONNECT.™, a global cybersecurity awareness campaign to help all digital citizens stay safer and more secure online.
We invite you to join us in Dallas next month for IBAT’s Interest-Rate Risk and Investment Management Summit. On October 29, this Summit will address important elements of prudent investment and interest-rate risk management providing directors, CEOs, CFOs, investment officers and portfolio managers with the tools and resources necessary to optimize their bank’s performance while staying within risk-tolerance parameters.
Specific examples of the types of analysis that are necessary to comply with heightened regulatory scrutiny on IRR, bond portfolios and trends in the rate environment will be discussed, in addition to many other related topics. If you’re looking for strategies and tactics to meet the performance challenges in your bank, this is the event for you. Learn more and register here.
Believe it or not, there are cynics among us who think that Janet Yellen and the Fed are spending much of their time these days just looking for excuses not to raise rates. Perish the thought! But, if those cynics are correct, the job of those excuse-seekers on the FOMC just got easier. At least it’s a job, though, and we learned this morning that job creation last month was, well, there’s just no excuse for it.
If you ask young professionals about a career in banking, they shrug and say "BORING." That is, until you start talking payment systems, cybersecurity, transaction speed, identity protection, fraud and other operational issues.
If you are growing your bank talent, this is a great year to send your employees, or send yourself, to the Bank Operations Institute (BOI) - a community bank-focused operations school. In its 36th year, IBAT's BOI is nothing short of successful operational leadership - all based on understanding the uniform bank performance report (UBPR), call reports and the rules and regs that measure bank performance.
Anyone working as a bank operations, lending or administrative officer who needs to develop managerial competencies for community banks is invited to attend the 2015 BOI program in Dallas. Click here to register for the October 11-16, 2015 program.
Several IBAT endorsed service providers are featured in the recently announced 2015 IDC Financial Insights FinTech Rankings - top 100 companies in FinTech. IBAT would like to congratulate the following:
- Diebold (#7),
- First Data Corporation (#13),
- D+H Corporation (#21) and
- CSI (#64).
Additionally, a number of IBAT associate members are also included on the list. Congratulations to all!
Board education and training are essential “best practices” in the new era of community banking. Regulatory expectations, along with the need for wise management, demand a skill set that many directors lack. In answer to this, IBAT and SWGSB are pleased to offer The Certified Community Bank Director’s (CCBD™) Program, held October 29-31, 2015 at the Cox School of Business. Please register and reserve your room before the Friday, October 2, 2015 deadline.
The CCBD Program is designed for both new directors, including those new to banking, and experienced directors. We are delighted to offer two levels for the Program:
- Level 1 is designed to address the most fundamental skills needed by directors today. It is suitable for new, as well as experienced, directors looking to be certified on core director responsibilities.
- Level 2 has been introduced for those directors who have completed Level 1 of the CCBD Program (or equivalent) and are ready to drill down into additional areas the modern director needs to master. The additional hours earned after completing Level 2 will fulfill the requirements for CCBD Certification.
This certification covers not only the regulatory and fiduciary responsibilities of bank directors, but also board structures and processes. In addition, the program focuses on the strategic responsibilities that make boards and directors effective.
Congratulations to Ricky Leal, Senior Vice President and Banking Center Manager at First Community Bank N.A (Harlingen, TX), for being appointed to the Consumer Financial Protection Bureau’s (CFPB) Community Bank Advisory Council.
As a member of this council, Leal will provide the CFPB with advice and feedback on policy development, research, rulemaking and engagement. This is an opportunity for a Texas community banker to ensure the CFPB knows how consumer laws and regulations impact both his bank and his customers. He will serve a two-year term.
After 15 years in South Lake Tahoe, the Winter Summit is changing venues. We have booked a fabulous ski resort - The Westin Riverfront Resort and Spa in Beaver Creek, Colorado - for a program that starts the evening of January 25 and concludes the afternoon of January 27. There are limited rooms available on both the front and back ends of the program at significant discounts from published rates.
While we are finalizing the program as you read this, we have commitments from the top regulators in Texas along with three of the state’s top banking attorneys. Additionally, Ryan Hayhurst of The Baker Group will again close the program with an economic and investment strategy update. This is a relaxed, informal learning opportunity blended with ample time for winter recreation and networking. Mark your calendar!
Watch for more information and an opportunity to register for this very popular program in coming weeks.
IBAT, along with Texas Land Title Association and Texas Bankers Association, sent a letter to House Financial Services Committee Chairman Jeb Hensarling expressing appreciation for the Committee’s reporting H.R. 3192 – Homebuyers Assistance Act to the full House.
H.R. 3192 provides a temporary safe harbor for lenders making a good faith effort to comply with the new TILA-RESPA Integrated Disclosure. If it becomes law, it will prohibit a suit filed against any person for a violation of the TRID requirements occurring before February 1, 2016, as long as the person made a good faith effort to comply. IBAT will closely monitor the progress of H.R. 3192 and report its fate to members. We are optimistic about the success of this bill.
Did you know? IBAT, in conjunction with Financial Education, Inc., hosts close to 150 webinars a year. Webinars are a very economical way to train your staff for one low price. Everyone can sit in on the program with the use of a speakerphone and a computer, or access archived webinars on-demand.
Topics are broken up by category or by date and include:
You can access a complete listing of upcoming webinars and archived webinars here.
IBAT hosted its 41st Annual Convention at the Galveston Island Convention Center last week. We want to thank the more than 700 bankers, spouses and industry partners who helped make our largest event a huge success. As anyone in Galveston could attest, the community banking industry is alive and thriving in Texas.
The Chairman’s Tailgate Party was full of team spirit, the sessions were overflowing, the exhibit hall was packed, the PAC Auction was the place to be and the Songwriters’ Late Show was jamming. Thanks to the generosity of attendees, the PAC Auction raised nearly $120,000. This includes more than $20,000 from the new ‘Paddles Up,’ which was a huge success and will be used in future PAC Auctions.
Handouts from the following sessions are available online:
- The Baker Group: Portfolio Management and Interest Rate Risk: What Worries You About Higher Rates?
- CDFI: Community Development Financial Institutions
- JMFA: Who Will Be In Charge? The Case for Succession Planning
- Oliver Garrison: Bank Cooperation with Law Enforcement
- StoneCastle Financial: Capital Alternatives for Community Banks A Banker’s Perspective
Congratulations to the new slate of board members officially elected at Convention, including Chairman Rogers Pope, Jr. (Texas Bank and Trust), Chair-Elect Darla Rooke (Junction National Bank), Secretary-Treasurer Joe Kim King (Brady National Bank) and Immediate Past Chairman John Jay (Roscoe State Bank). New directors Gary Owens (Southwestern National Bank) and Kenny Zapalac (National Bank & Trust) were also added to the IBAT Board.
Photos from the 41st Annual Convention are available online. If you attended the Convention are looking for additional photos, please contact Christopher Williston.
On September 21, 2015, the CFPB finalized its rule by adopting what it proposed in January 2015. The final rule expands the definition of a rural area to include census blocks that are not in an urban area.
For a small creditor making loans only in counties that are deemed rural, nothing changes because any first-lien mortgage loan made in a county designated rural is considered a rural loan. For a small creditor making at least some of its first-lien mortgage loans outside of the counties designated rural, more than 50% of those loans must be made (to qualify for the exemptions): (1) in counties that are rural, (2) outside of urban areas of counties that are not rural and (3) in counties that are underserved. (Please note the rule does not revise the definition of rural county in Regulation Z’s HPML appraisal provisions or affect the exemption from the requirement to obtain a second appraisal for certain HPMLs.)
Also of importance, the CFPB’s final rule:
- Expands the definition of a small creditor from 500 first-lien mortgage loans to 2,000 mortgage loans, excluding loans held in portfolio (IBAT supported this);
- Includes the asset of the creditor’s mortgage originating affiliates in calculating whether a creditor is under the $2 billion limit for small creditor status (IBAT did not support this);
- Extends the expiration of the temporary extension under which eligible small creditors are currently able to make balloon-payment Qualified Mortgages and balloon-payment high-cost mortgages regardless of where they operate from January 10, 2016 to April 1, 2016 (IBAT supports and is seeking a permanent extension); and
- Creates a one-year qualifying period for rural or underserved creditor status.
For full background on this issue, click here.
For the third quarter of 2015, Dell is offering IBAT member banks, bank employees and customers 35% off the list price of Optiplex and Latitude PCs. Please use current coupon code SAVE35BIZ.
Additional offers include:
- Save an extra 10% on select XPS and Inspiron PCs
- Save an extra 10% on select PowerEdge servers $1299 and above
- Save an extra 10% on Dell Precision Workstations
- Save up to an additional 10% on select Dell electronics and accessories
While these deals are offered until October 31, IBAT member savings are available from Dell all year long. On average, IBAT members enjoy savings of approximately 30% on each order. If you'd like to take advantage of the Q3 deal, visit Dell's website or contact Bryan Horten, IBAT’s Strategic Account Manager, at 512-942-9120. Be sure to include the unique Dell/IBAT link number GS126658178 when placing your order. For orders of more than five units, please contact Bryan.
Feel free to download the flyer listing the current discounts, and share it with your staff and customers