Tax Lien Lender Questions

Burt R. Solomons asked the Texas Attorney General questions about the
respective roles of the tax assessor-collector (the "Collector") and
the governing body of a taxing unit in relation to the transfer of a tax lien
to a third party who pays a property owner's property taxes. The Attorney
General answered the questions as follows: (1) The Collector, acting alone,
must carry out the ministerial duties related to the transfer. Neither the
Collector nor the governing body of the taxing unit is empowered to deny the
transfer of a tax lien if the conditions of section 32.06 of the Tax Code are
otherwise met.  (2) A court could conclude that closing costs and lien
recordation fees charged by a property tax lien transferee under section 32.06
of the Tax Code are secured by the transferred tax lien.

With regard
to the second answer, the Opinion recognized that the statute does not
specifically address charges or fees with respect to the recording of the lien.
 It concludes from this absence that it could be argued that lien
recording fees are not among the charges, fees or expenses expressly authorized.
 However, the Attorney General also found support in the Tax Code that any
charges and fees included in the contract between the property owner and the
transferee are secured by the transferred lien. Therefore, the Opinion
concluded that a court could conclude that closing costs and lien recording
fees are secured by the transferred lien.

FDIC Compliance Teleconference

FDIC has scheduled its next compliance teleconference for this Thursday,
September 27, from 1:00 to 2:30p.m. central daylight time. FDIC
staff from the Division of Depositor and Consumer Protection will focus the
call primarily on the Consumer Financial Protection Bureau's (CFPB)
mortgage-related proposals, including:

  • Mortgage
    originator standards,
  • Appraisals
    for "higher-risk" mortgages,
  • Equal
    Credit Opportunity Act appraisal requirements, and
  • Mortgage

Advance registration for the teleconference
is required but free of charge.    Please click
to register for the teleconference.

IBAT PAC Auction

is only 2 weeks away and your IBAT staff is working hard to make
this a great event for our members.  Time is short but you still have time
to get in your PAC Auction items.   

We've got:

  • jewelry and handbags
    for the discerning woman;
  • toys for the grandparents;
  • fishing and hunting
    outings for the sportsmen;
  • artwork for the collector;  sports tickets for
    the sports fans; and
  • many many more items. 

Don't forget to get your items
in by September 26th, by filling out the Auction Participation Form, if you would like to be included in the
Auction Guide

CFPB Community Bank Council

Thurman, First National Bank of Moody, has been named to the CFPB's
newly-formed Community Bank Advisory Council.  The council, composed of
representatives serving in financial institutions under $10 billion in assets,
is to provide the CFPB with feedback and recommendations to inform its policy
development, research, rulemaking, and engagement functions.

Thurman will
serve a two-year term on the council.  Congratulations to Glen on this

Baker Market Update

Information received since the Federal Open Market Committee met in August suggests that economic activity has continued to expand at a moderate pace in recent months. Growth in employment has been slow, and the unemployment rate remains elevated. Household spending has continued to advance, but growth in business fixed investment appears to have slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level. Inflation has been subdued, although the prices of some key commodities have increased recently. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labor market conditions. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that inflation over the medium term likely would run at or below its 2 percent objective.  

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will continue through the end of the year its program to extend the average maturity of its holdings of securities as announced in June, and it is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.

The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability. In determining the size, pace, and composition of its asset purchases, the Committee will, as always, take appropriate account of the likely efficacy and costs of such purchases.

To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens. In particular, the Committee also decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H. Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who opposed additional asset purchases and preferred to omit the description of the time period

Flag Alert




As a mark of respect for the memory of John Christopher Stevens, United
States Ambassador to Libya, and American personnel killed in the
senseless attack on our diplomatic facility in Benghazi, by the
authority vested in me as President of the United States by the
Constitution and the laws of the United States of America, I hereby
order that the flag of the United States shall be flown at half-staff at
the White House and upon all public buildings and grounds, at all
military posts and naval stations, and on all naval vessels of the
Federal Government in the District of Columbia and throughout the United
States and its Territories and possessions until sunset, September 16,
2012. I also direct that the flag shall be flown at half-staff for the
same length of time at all United States embassies, legations, consular
offices, and other facilities abroad, including all military facilities
and naval vessels and stations.

IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of
September, in the year of our Lord two thousand twelve, and of the
Independence of the United States of America the two hundred and

Silver Alert




The EL PASO POLICE DEPARTMENT is searching for ALFONSO TELLEZ, diagnosed
MALE, 68
years old, DOB 06/18/1944,


The senior
citizen was last seen at 0700, 09/10/2012 at 7313 WILCOX

enforcement officials believe this senior citizen’s disappearance poses a
credible threat to HIS own health and safety.

If you have
any information regarding this missing senior citizen, contact the EL PASO POLICE DEPARTMENT at 915-872-3656.

News Media
Point of Contact is


Kilpatrick Life Insurance Company and Citizens National Bank (CNB) are pleased to announce that a multi-year lease has been signed by CNB to occupy the Kilpatrick Life Insurance Company building at 200 N. Fredonia located in downtown Longview. Kilpatrick is eager to have a bank return to the building and both organizations are looking forward to adding to the growth and revitalization of downtown Longview.

Brad Tidwell, President & CEO of CNB stated, "Everyone at Citizens National Bank is very excited about the opportunity to open the downtown Longview branch. Our expansion and new presence downtown will allow Citizens to have a much larger footprint geographically and we will be able to serve Longview better than ever before. We greatly appreciate the significant investment that Kilpatrick is making along with CNB to the building. Without them this new venture would not be possible."

"Kilpatrick Life Insurance Company is delighted that Citizens National Bank has chosen the Kilpatrick Life Building in Longview as its newest location," said J. Brian Morrison, President and CEO. "I think it speaks volumes when a bank like Citizens chooses to bring 25 new jobs to downtown Longview." Kilpatrick Life Insurance Company was founded in 1932 and has $1 billion of in-force insurance.

Kilpatrick and Citizens are making a significant investment in the building, with renovations to the basement, first and second floors, as well as the parking garage, exterior of the main building and drive-thru convenience center. CNB will lease almost 20,000 square feet of total space.
CNB anticipates opening the drive-thru convenience center, located at the intersection of Methvin and Green Streets, by November 1, 2012, with the main bank slated to open by April 1, 2013. CNB
currently serves Longview with branches located at 3412 N. 4th Street @ Hawkins Parkway, 5001 Estes Parkway in Lakeport and 3600 Gilmer Road in Spring Hill.

CNB anticipates employing a staff of approximately 25 at their newest Longview location. This location will also be the home of CNB's Longview Trust Department. Both Kilpatrick and CNB are committed to Longview and its continued growth.

Citizens National Bank is a $925+ Million Independent Community Bank with 18 locations across East and Central Texas. Citizens provides a full array of commercial, consumer, investment, insurance and mortgage products using the latest technology to meet and exceed the individual needs of our customers. We've been serving our neighbors for 82 years and we would appreciate the opportunity to serve you.

uCommerce Webinar

Strategy & Research and First Data have joined forces to provide you with
the latest insights into the online banking industry, which will help you
prepare for the new world of uCommerce. Find out why flat-lining adoption rates
sound an alarm to rethink personal banking in an era of interactive finance.

First Data on September 18th, and you'll:

  • Learn about key trends and issues
    that could change the outlook for online banking;
  • Understand how shifting consumer
    behavior is driving the evolution of online banking;
  • Discover the rewards of
    capitalizing in mobile banking, personal financial management and alerts;
  • Find out how financial
    institutions can appeal to consumers who are ready for online bill

Click here to learn more.

CFPB Proposal on HOEPA

July 9, 2012, the CFPB issued a proposed rule that would implement the HOEPA
amendments of the Dodd-Frank Act and fundamentally change the way that Annual
Percentage Rate is calculated.  If adopted "as-is," this will be
one more rule that creates a competitive disadvantage between community banks
and the mega-banks who have the resources to conduct more mortgage loan
services in-house and thus, make no closing costs loans. The mounting
disadvantages in mortgage lending may cause community banks to exit the market.
 Additionally, the proposed counseling requirement causes significant
concerns because federally certified or approved homeownership counselors are
not found in all areas of the state. Read IBAT's comment letter on these and other concerns raised
by this proposal.

Tax Lien Lenders

Texas House Committee on Business and Industry held an interim hearing on
August 27 to explore issues related to construction liens and tax lien lenders.
IBAT testified on both issues.

have been in discussions with various parties regarding potential legislation
impacting construction liens at the upcoming session.  Our position has
been that we are more than willing to discuss issues, but will not accept any
proposals that will increase either the expense or liability of our member
banks in this already challenged category of lending.

we continue to receive calls and correspondence regarding issues with tax lien
transfers to third parties.  We, again, plan to cause legislation to be
introduced to address some of the more urgent issues, including limiting the
priority lien to the amount transferred from the taxing authority at date of
transfer, timely and accurate payoff notification and appropriate disclosure to

New Senate Finance Chair

Governor David Dewhurst named Senator Tommy Williams (R - The Woodlands) as
Chairman of the powerful Senate Finance Committee.  He replaces longtime
Chairman Steve Ogden (R - Bryan) who is not seeking reelection.  

Committee is responsible for, among other issues, all revenue and expenditures
at the state level.  

Williams is President of Woodforest Financial Services (a subsidiary of
Woodforest National Bank) in The Woodlands, served in the Texas House from
1997-2002, and has served in the Senate since 2003.

extends hearty congratulations to Senator Williams for this well-deserved

APR Comment Period Extended

Friday, August 31 the CFPB extended the comment period for the proposed rule
affecting the current definition of "finance charge."  The
proposed rule would create an all-in financing charge by fundamentally changing
how the annual percentage rate - or APR - is calculated.  

IBAT is involved with other interested parties in drafting a joint comment
letter opposing the change on the grounds it will further confuse consumer
borrowers and place smaller institutions at a competitive disadvantage.
 IBAT welcomes the additional time to study the impact of this significant
change. Click here to read the CFPB's extension of comment
period in its entirety.

Basel III Calculator

requests from many members for IBAT to develop or secure a calculator or
spreadsheet to determine the impact of this proposal on your bank's Tier I
capital, we are pleased to provide such an instrument, attached here.

IBAT would like to acknowledge the excellent work of the Fisher, Herbst, and
Kemble CPA firm of San Antonio, and specifically Alan Rich, for making this
instrument available to IBAT member institutions.  It is our understanding
that the agency is also developing a calculation instrument, but it will not be
available for some time.

believe you will find this to be a useful tool, and hopefully serve as a wake-up
call for the industry to engage in providing comments to the agencies.
 Along with previous information provided in IBAT's call to action, you
should have plenty of information to draft a personalized comment letter
supporting the case that the Basel III capital rule is onerous and should not
apply to community banks.

you have questions relative to the spreadsheet, please email Alan, at arich@fhkcpa.com.

TAG Extension

part of the ongoing efforts to urge Congress to extend the Transaction Account
Guarantee or "TAG" program. IBAT joined approximately seventy banking
associations in signing letters sent to members of the United States House and Senate last week.  

the economic recovery remains fragile, the abrupt expiration of insurance
coverage for non-interest bearing transaction accounts carries the risk of
sudden dislocation of funds and other unintended consequences for banks, credit
availability, and the economy," the letter read.

has been active in making the continuation of full coverage of transaction
accounts a top priority in recent meetings with members of both the U.S. House
and Senate.  

IBAT Goes Mobile

the official mobile application of the Independent Bankers Association of
Texas, is now available for download for iPhone and iPad users. The app, which
gives Texas community bankers mobile access to industry news, education
opportunities and the extensive archive of more than 500 past Legal Ease items,
is the first application of its kind developed by a state community banking

the video below to learn more about the application. Click here from
your iPhone or iPad to download the app now!

2013 Legislative Session

the 83rd Texas Legislature is still four months away from convening,
and most of the attention these days is on the elections and the continuing
onslaught from our federal government, IBAT has also been gearing up for the
upcoming legislative session.

has consistently offered legislative recommendations to benefit your bank, and
this session will be no exception. Your Legislative Committee reviewed and
discussed a number of issues, and has developed a recommended proactive agenda
to pursue. As per policy, the full IBAT Board of Directors reviewed and
approved these recommendations as well. Several of these issues are still
"in flux," and you will be kept apprised as the process moves

areas of focus will include:

  • Tax Lien Lenders
  • Service on Financial Institutions
  • Mortgage Payoff
  • Debit/Credit Card Fraud  
  • Home Equity

information is available on our website.  As always, we encourage you to let
us know what we can do in the legislative or regulatory process to address any
of your concerns.