2014 Bank Lending Institute

The Bank Lending Institute (BLI)™ leads the field in preparing community bankers for banking in the 21st Century.  Guided by the industry’s top regulators and banking professionals, BLI gives community bank lenders the tools necessary to serve their customers while effectively  managing their institution’s risk and enhancing its profitability.  Here the emphasis is on practical, real-world issues and solutions.  During the first year, BLI takes students through the “nuts and bolts” of lending offering techniques to better understand the borrower and his needs. The second year builds on that knowledge base by covering specific types of lending. It helps elevate lenders to a new level of strategic thinking and presentation.

Click here to learn more or register here

Are You Ready?

Last week, the Consumer Financial Protection Bureau (CFPB) released its updated Readiness Guide for mortgage rules to include information on the new TILA-RESPA integrated disclosure rule. The guide is intended to help banks evaluate their readiness for complying with the mortgage rule changes.

The TILA-RESPA integrated disclosure rule is effective for transactions in which the creditor receives an application on or after August 1, 2015. The Bureau has an entire page of resources dedicated to the implementation of the rules, which includes:

If your team needs more information on compliance with new CFPB mortgage rules, the FDIC is hosting a free teleconference on October 22 to help bankers better understand ability to repay/qualified mortgage rules, as well as loan originator compensation rules.

Comment on FHLB Rule

In a comment letter filed with the Federal Housing Finance Agency late last month, IBAT called upon the agency to abandon a proposed requirement that each member of a Federal Home Loan Bank (FHLB) maintain at least 1% of its assets in long-term home mortgage loans and at least 10% of its assets in residential mortgage loans. The comment period, which had an original deadline of November 12, 2014, has been extended to January 12, 2015.

The letter, drafted by IBAT President and CEO Chris Williston, points to the onerous mortgage rules promulgated by the Consumer Financial Protection Bureau (CFPB) earlier this year, which have resulted in reduced mortgage lending activity by many community banks. Williston expressed concern that the CFPB rules, coupled with new threshold requirements for FHLB membership, “could disqualify many [community] banks.”

IBAT members are encouraged to use our letter as a guide in drafting your own response to the proposed rule. As always, it is also recommended that you include specific information regarding the potential impact on your bank in your comment letter. Please use this extension as an opportunity to share your thoughts about the proposed rule.

Upcoming LD Events

Several Leadership Division regions are hosting events that will cover a variety of important industry topics in the coming weeks. We encourage you to register for an event in your region, or join your peers in other regions for learning and networking opportunities.

Upcoming events include:

Week in Review: October 14, 2014

What kind of week was it? Well, it was a week like all weeks; filled with the events that alter and illuminate our times. We lost a little of our illumination in the wee hours Wednesday morning as the Earth’s shadow temporarily dimmed the reflected glow of the moon. Also dimming are Earth’s economic prospects, and that may be altering how the Fed views the road ahead for the domestic economy. This week’s release of September’s FOMC minutes reveals a growing concern that weak or negative growth in the EU and elsewhere could crimp our own potential.

Read more in the Baker Market Update.

Salary Survey Insights

The results of IBAT’s 2014 Community Bank Compensation and Benefits survey are now available to purchase and download. The full report includes compensation information on the twenty-five most requested job positions, as well as information on director pay and employee benefits.

Here are just a few of the data points highlighted in this year’s survey:

  • Outside directors were paid an average of $789 for attendance at a regular board meeting and $391 for a special board meeting.
  • Two- thirds of the responding banks experienced an increase in health insurance premiums of 0%-10%, while nearly one-third experienced increases of 11%-25%.
  • 42% of respondents in urban areas utilized signing bonuses for key new hires last year, compared to only 17% of rural respondents.

If you did not participate in the survey but are interest in purchasing the full report, please contact Christopher Williston to gain access.

Staff contact: Christopher Williston, clwilliston@ibat.org, 512-275-2208

IBAT Office Closure

In observance of Columbus Day, the IBAT office will be closed on Monday, October 13, 2014. 

The office will reopen for regular hours of operations on Tuesday, October 14.


Vehicle Registration Changes

The Texas Department of Motor Vehicles is offering a webinar that will provide an overview of the new “Two Steps, One Sticker” program—a result of House Bill 2305 enacted during the 83rd Legislative Session. This single sticker program requires verification of vehicle inspection prior to registration or renewal and will begin statewide on March 1, 2015.

This program overview will be helpful for those responsible for title and registration of vehicles in Texas, including submitting paperwork to the local county tax assessor-collector to record lien information.

Click here to register for the webinar on Thursday, October 16 from 1-3 p.m. 

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221

The End of Disparate Impact?

In a welcome development last week, the United States Supreme Court agreed to hear the case of Texas Department of Housing and Community Affairs v. Inclusive Communities Project. In hearing the case, the court will consider whether disparate impact claims are enforceable under the Fair Housing Act. Disparate impact is the lynchpin upon which the current administration has relied in determining and enforcing fair lending violations. 

You’ll recall that two earlier cases were slated for consideration by the nation’s highest court, only to be scuttled at the last minute as the Justice Department and defendants reached out of court settlements. No such settlement is expected between the office of Texas Attorney General Greg Abbott and the Justice Department.

“We are thankful that, once again, the Supreme Court has agreed to consider this issue,” said IBAT President and CEO Chris Williston. “Too many lenders–and more importantly, small dollar borrowers–have been harmed by the rogue misapplication of disparate impact doctrine to fair lending enforcement. We are optimistic that the Supreme Court will ultimately put an end to this unfortunate regulatory practice.”

The Supreme Court hearing of the case will occur next year. 

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221

Thank You, Judge Boyle

A U.S. District Judge sent a strong message to the Federal Deposit Insurance Corporation (FDIC) in a recent decision blocking the agency’s attempt to recoup $40 million in losses from a failed North Carolina bank. 

The FDIC claimed that directors of the Cooperative Bank of Wilmington, N.C. displayed negligence, gross negligence and breaches of fiduciary duty in connection with 86 loans approved in 2007 and 2008. 

In his decision, Judge Terrence Boyle cited the FDIC’s own Reports of Examination on the bank, which assessed a CAMELS rating of “satisfactory” and not requiring “material changes” on the bank’s management. 

Judge Boyle did not argue for the reasonableness of the loans themselves, merely that the examinations reveal that the bank had a regulator-approved process in place to determine the rationality of the loans. 

Putting the icing on the cake of making Judge Boyle the IBAT hero of the week, he concluded by saying, “it appears that the only factor between defendants being sued for millions of dollars and receiving millions of dollars in assistance from the government is that Cooperative [Bank} was not considered ‘too big to fail.’”

The full judgment in the case can be downloaded here.

Staff contact: Shannon Phillips, sphillips@ibat.org, 512-275-2221

The Future of Banking Online

The .bank URL will soon be available, according to fTLD Registry Services (fTLD). fTLD is a coalition of banks, insurance companies and financial services trade associations, including ICBA, that has partnered to operate the .bank and .insurance URLS once they become open. The .bank URL is expected to be available in the second quarter of 2015. fTLD's application to operate .insurance is still pending.

Banks will have the opportunity to voluntarily convert their domains from .com to .bank, which will have enhanced security controls that exceed most existing URLs. All applicants will be confirmed as legitimate members of the banking community before any names are awarded. One of the goals of this new domain is to help prevent users from being redirected to fake bank websites and mitigate phishing.

Read here for more information about the process of applying for a .bank URL and FAQs. Stay tuned for more updates as implementation gets closer.

Staff contact: Chris Williston, cwilliston@ibat.org, 512-474-6889

Featured Event

Criminals Refine Their Attacks Every Day!
You Need Up-to-Date Information
for Successful Defense Strategies

SWACHA and FS-ISAC are continuing their commitment to leadership in risk mitigation with this timely seminar. 

We will be bringing together technology experts and leaders in the risk field, to discuss the most pressing issues for financial institutions of all sizes.

Don't miss this opportunity to interact with law enforcement, industry leaders and peers from local financial institutions!

Ideal for: Representatives from online banking products, payments operations, risk or security, information technology areas, product management, compliance and risk management staff or anyone interested in keeping up with cyber crime and how to mitigate risk.

In Celebration of National Cyber Security Awareness Month #NCSAM


  • A Review of Cyber-Crime, Threats and Risk Mitigation Techniques
  • Electronic Crimes & United States Secret Services
  • Technology and Solutions for Cyber Crime Risk Mitigation
  • Account Takeover Simulation and Exercise



October 8, 2014
University of Texas at Dallas - Richardson, TX

Click Here for More Information
or Call (800) 475-0585


Partners in Success

IBAT was honored with the Partners in Success award at the Annual Conference of the Financial Women in Texas (FWIT) this past weekend.

In recognizing the organization, FWIT President Janet Dirba recounted the role that IBAT President and CEO Chris Williston played in ensuring the survival of the organization when it faced disbandment five years ago. FWIT also expressed its gratitude to IBAT with a $100 donation to the IBAT Education Foundation.

Darlene Revers, IBAT Vice President of Membership, was on hand at the FWIT Annual Conference to receive the award. Darlene has served as an ambassador between IBAT and FWIT, standing on the frontlines to offer resources to help the organization thrive again.

Many thanks to FWIT for its recognition of IBAT and its service to women in the financial services industry.

Staff contact: Darlene Revers, drevers@ibat.org, 512-275-2217

Walmart in Banking?

Last week saw the much-ballyhooed announcement that Walmart is moving to offer no-fee checking accounts. The arrangement between Walmart and Green Dot Bank is similar to the one announced between American Express Bluebird and the retailer last year. Walmart will sell the GoBank “starter debit card” for $2.95 in stores. Consumers will then go online to set up their account, which requires no minimum balance and no regular monthly fees (if a direct deposit over $500 is set up). Walmart will also operate to accept deposits onto the cards. GoBank accounts will be FDIC insured.

The full GoBank account agreement is online for your review.

“The nation’s community banks have offered low-fee and no-fee basic checking accounts for decades. Meeting the financial needs of citizens in thousands of communities across America is at the heart of the community banking business model,” said ICBA President and CEO Cam Fine.

“So the message is simple: if a retailer like Walmart is going to serve as a conduit for offering checking accounts and other traditional banking services, it needs to know its customer and protect the customer’s financial health just as is required of all banks. This means that these accounts should be subject to the same legal and regulatory framework, consumer protections and oversight as traditional checking accounts offered by banks.”

Staff Contact: Chris Williston, cwilliston@ibat.org, 512-474-6889