IBAT Webinars

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:

  • Auditing & Accounting
  • Collection
  • Compliance
  • Directors
  • Frontline and New Accounts
  • Human Resources
  • IT
  • IRA
  • Lending
  • Operations
  • Security & Fraud
  • Senior Management

You can access a complete listing of upcoming webinars and archived webinars here.

Convention Success

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:

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.

Final Rule

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

Q3 Dell Sale

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

Full Background

In early 2013, the CFPB proposed a definition of rural areas that expanded the previously adopted definition, but fell short of providing the relief needed for the country’s rural mortgage markets. For years, IBAT has advocated an exemption for in-portfolio mortgage loans. IBAT staff recognized the importance of providing thoughtful feedback on the proposed rural areas definition. After studying the proposal carefully, determining that it didn’t provide the relief needed for the country’s rural mortgage markets, IBAT’s research led it to the Census Bureau’s definition of urbanized areas (densely populated areas of over 50,000). If all areas outside of urbanized areas were considered rural areas, it would provide as much relief as could be garnered without an in-portfolio exemption.

On May 2, 2013, IBAT submitted a comment letter proposing just this—the CFPB expand the definition of rural areas to include all areas outside of the country’s urbanized areas. A few days later, IBAT President and CEO Chris Williston and Deputy General Counsel Shannon Phillips Jr. travelled to CFPB headquarters to discuss IBAT’s proposal with CFPB staff. At that meeting, the CFPB commended IBAT for suggesting a solution that it wasn’t acquainted with previously. Soon after that meeting, CFPB announced a two-year grace period while it studied the issue. During that two years, IBAT asserted its solution to CFPB at every opportunity—in another comment letter, at several meetings with CFPB staff and briefly during a banker meeting in Dallas with CFPB Director Cordray.

On January 29, 2015, the CFPB issued proposed rules that contained several positive advances and included a definition of rural areas that was undeniably based on IBAT’s proposal. Unfortunately, instead of adopting IBAT’s definition in whole, the CFPB’s proposal retained the same rural designated counties and additionally provided that first lien mortgage loans made in areas outside of the urban areas (densely populated areas of 2,500 or more) of non-rural counties would also be considered rural loans. In response, IBAT submitted a comment letter that commended the advances made in the proposal, but, in great detail, described how the proposed rural areas definition would continue to depress mortgage lending nationwide, create two classes of loans in rural America and create inequities between loans secured by similarly situated properties.

Baker Market Update: Sept. 28, 2015

With the death this week of Yogi Berra, the world lost a national treasure. We learned this morning, though, that our nation’s treasure, or at least its GDP, still grew by 3.9% in the second quarter. That should make everyone feel a lot more like they do now than they did before. This third, and perhaps final, estimate of economic output was slightly better than the 3.7% previously estimated growth rate. A big reason for the upward revision can be traced back to larger-than-expected revisions in Personal Consumption, and that’s welcome news for policymakers as well as those on the other side of all that consumption.

Read more in the Baker Market Update.

Latest Magazine

The September/October 2015 digital edition of IBAT’s magazine, The Texas Independent Banker, is now available online. Click here to view the full table of contents or link directly to specific content below:

As always, if you have suggestions for future content to be featured in The Texas Independent Banker magazine, please contact Bonnie Kankel.

Congratulations Kay Whitton!

Kay Whitton, Money Matters teacher at Jim Ned High School in Tuscola, was presented the IBAT Education Foundation’s Teaching Excellence in Financial Literacy Award at the Jim Ned CISD Board meeting on September 14, 2015. In addition to being presented a proclamation from IBAT, she was given a $1,000 check for her efforts to further financial literacy with her students and in her community.

Whitton, who has taught for more than 20 years, has impacted over 1,100 students with her financial education program. Her curriculum contains a combination of resources she has compiled throughout the years, including materials from IBAT’s Teach the Teacher Program™. As an award recipient, she will also serve on the Teach the Teacher Advisory Council. A special thanks to Joel Terry of Texas National Bank (Tuscola) for nominating Whitton, who taught his own children.

“At Texas National Bank, we are thankful for the work that IBAT is doing to highlight the importance of financial literacy in our public school systems and honored to nominate Kay Whitton for this prestigious award,” said Joel Terry, Tuscola Market President at Texas National Bank. “She exhibits such a heartfelt passion to improve the lives of her students through knowledge. Mrs. Whitton is truly deserving of this award.”

Photo: Joel Terry, Texas National Bank; Kay Whitton, financial literacy teacher at Jim Ned High School; and Lindsey Gehrig, IBAT, celebrate Whitton receiving the IBAT Education Foundation’s Teaching Excellence in Financial Literacy Award at the Jim Ned CISD Board meeting on September 14, 2015.

Calling All Compliance Officers

Due to the high demand for the complimentary Compliance Officer Information Sharing Event (COISE) scheduled for October 20, we have added a second meeting on October 22.

Join us from 10 a.m.-3 p.m., at the latest, at the IBAT office in downtown Austin to share and receive information from compliance officers across the state as well as the IBAT compliance and legal staff. Additionally, a catered lunch courtesy of IBAT will be served. This is a unique type of meeting where we will facilitate conversation and networking. Register soon as attendance is limited to the first 25 compliance officers to sign up.

An experienced compliance officer who attended COISE in the spring had this to say:

“So excited to see there will be another compliance officer meeting. I walked away with several pages of notes after the last one… this should be exciting since TRID will have just made its debut. Two thumbs up!”  –Shauna Halfmann, The First National Bank of Ballinger/Bank of San Angelo

Registration and additional information about the October 22 meeting can be found here.

New CFPB Tools

The Consumer Financial Protection Bureau (CFPB) released new online tools in preparation for the October 3, 2015 TILA-RESPA deadline. These new tools will help consumers understand the TILA-RESPA Integrated Disclosure forms that lenders will soon be required to use. They are part of the CFPB’s “Know Before You Owe” initiative designed to assist consumers as they go through the mortgage process.

The new resources include a mortgage milestone guide and payment worksheet as well as TRID loan estimate and closing disclosure form interactive samples. Designed to help homebuyers determine how much they can afford to spend and comparison shop between multiple loan offers, these tools can be found on the CFPB’s “Owning a Home” site.

Additionally, the CFPB updated its Dodd-Frank Mortgage Rules Readiness Guide to help financial institutions of all sizes maintain compliance with the mortgage rules outlined in the guide.

The Results Are In!

The 2015 Texas Community Bank Salary and Compensation Survey report is now available for purchase and download! This year we reached a new high for participation, as 136 Texas community banks provided data for the survey report.

If you participated in the survey, you should have received an email last Friday with details about how you can download and access the report. Didn’t get a chance to participate this year? You can still buy the report by emailing Christopher Williston.

Thank you to all of the IBAT member banks that added value to the publication by providing data. And, thank you to Bank Compensation Consulting for sponsoring the 2015 Survey!

Not Seeking Re-Election

Late last week, Rep. Randy Neugebauer announced that he will not seek re-election in 2016. Rep. Neugebauer is a former community banker and small business owner, and he currently serves as Chairman of the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit as well as Vice-Chairman of the House Agriculture Committee.

He has been a longtime friend of IBAT and important Washington, D.C. advocate for community banks. Rep. Neugebauer received the IBAT Trailblazer Award in 2014. Meeting with him and hearing him speak was always a highlight of the IBAT Annual Congressional Visit in D.C.

“While we are saddened to lose such a strong community bank advocate when Rep. Neugebauer leaves office in 2016, we want to thank him for his many years of service to our industry, our great state and our country,” said IBAT President and CEO Chris Williston. “He has proudly represented the 19th Congressional District of Texas, and we salute him for his efforts. It has been an honor to work with him and personally, to call him my friend. We hope he enjoys the well-deserved time with his family and knows how deeply he will be missed.”

Be Prepared

Did you know September is National Preparedness Month? As such, it’s a good time for community bankers to revisit their disaster preparedness efforts. Below are resources distributed by regulators in the last few years to assist financial institutions with disaster preparation.

In addition to these publications, your regulator may have additional information on specific topics. For example, FEMA has an abundance of information. Additionally, IBAT offers a free emergency hotline system for use by member banks to assist with keeping in touch with your employees in the event of a natural disaster or other business-disrupting event. Click here to access the disaster preparedness article prepared by IBAT staff during the horrific Texas wildfire outbreaks of 2011. Be safe and be prepared. 

Baker Market Update: Sept. 21, 2015

Financial markets and those that participate in them have always reacted to events as they occur. Yesterday’s big event was something that didn’thappen. The FOMC did not raise the near-zero target range for Fed Funds that has been in place since December 2008. If your phone doesn’t ring, that’s Janet not calling. If it does ring, it might be Richmond Fed President Jeffery Lacker, whose dissenting vote represented the only voting voice on the Committee that wanted to raise the Funds rate. Mr. Lacker’s unanimity-spoiler could signal the opening of dove season. Bond markets reacted as one would expect; prices rose and yields fell, particularly in the short end. This morning’s price action continues with most of the price appreciation happening in the long end as the yield on the inflation-sensitive thirty-year Treasury bond has been pushed below 3%.

Read more in the Baker Market Update.