Tennessee Bankers

This Week Newsletter



January 04, 2016 - Issue No. 1601


Congress Convenes Second Session; Focus Shifts to Presidential Election

The second session of the 114th Congress convenes January 4 and though there are legislative issues to tackle, as is the norm every four years, political attention will shift nearly exclusively to the Presidential Election. The Iowa Caucuses kick things off February 1, followed shortly thereafter by the New Hampshire Primary February 9.  Tennessee is attracting attention as a battleground state for the Republican Primary, scheduled for Super Tuesday 2016, March 1, also dubbed SEC Tuesday for the number of southern states holding primaries that day.

Cybersecurity Act of 2015 Signed into Law

On December 18, the U.S. Congress passed, and the President signed into law, an omnibus bill that included the Cybersecurity Act of 2015. The Cybersecurity Act contains core provisions of the Cybersecurity Information Sharing Act (CISA), which the financial services sector strongly supported. 
The Cybersecurity Act of 2015 provides liability protection for sharing cyber threat information from a private entity to another private entity, among and between other sectors, and bi-directionally with the government through a designated U.S. government portal.

Register Today for TSSACL Early Bird Tuition

The Southeastern School of Advanced Commercial Lending is an intensive three-day school focusing on new approaches to managing problem loans and portfolio credit risk, commercial real estate lending, pricing for profitability, and advanced cash flow and loan structuring. Taking place February 1-3 in Nashville at the TBA Barrett Training Center, John Barrickman, president of New Horizons Financial Group, LLC, and the author of the ABA commercial loan curriculum; John Cochran, principal consultant of Cochran Associates LLC; and Michael E. Hendren, real estate senior credit officer with Pinnacle Financial Partners, are the instructors. This school is ideal for commercial lenders, relationship managers, portfolio managers, and senior credit managers. Please contact Susan Taylor with questions or click here to register

Credit Conference Registration, Room Block Available Now

The 2016 Credit Conference will be February 25 and 26 at the Omni Hotel Nashville.  One of TBA's most popular events, this conference annually attracts over 500 attendees. The complete brochure is now available online along with registration.  The deadline for early registration is February 11. Team discounts are available. 
TBA has reserved a block of rooms at the Omni Hotel.  The block expires February 3, and may sell out in advance of that date.  Secure a room by calling 1-800-THE-OMNI and requesting the Tennessee Bankers Association Credit Conference special rate.

CFPB Tool Helps Creditors Locate Properties in Rural Areas

The CFPB has released a new online tool to help creditors determine if properties are located in rural or underserved areas. Creditors may rely on this tool to provide a safe harbor determination as allowed by Regulation Z. Users select a year and enter a property address to determine whether the property location is considered to be in a rural or underserved area. The tool also provides a template that can be used for a larger file upload, allowing users to search for multiple properties at a time. Access the tool.

CFPB Adjusts HMDA/TILA Asset Exemption Thresholds

The CFPB has announced annual adjustments to two asset-size exemption thresholds.  First, the CFPB is making no change to the asset-size exemption threshold under HMDA/Regulation C, currently set at $44 million.  Banks with assets at or below $44 million as of December 31, 2015 will continue to be exempt from collecting HMDA data in 2016.


Second, the CFPB has decreased the asset-size threshold under TILA/Regulation Z for certain small creditors operating primarily in rural or underserved areas to qualify for an exemption to the requirement to establish an escrow account for higher-priced mortgage loans (HPML).  The threshold is currently set at $2.060 billion.  Loans made by creditors operating primarily in rural or underserved areas with assets of less than $2.052 billion as of December 31, 2015 (including assets of certain affiliates) that meet the other Regulation Z exemption requirements will be exempt in 2016 from the escrow account requirement for HPMLs.  (The adjustment also will decrease the asset threshold for small creditor portfolio and balloon-payment qualified mortgages which references the HPML escrow account asset-size threshold.)

2016 Scorecard Released for Fannie, Freddie

Regulators have released the scorecard goals for Fannie Mae and Freddie Mac in 2016. Credit availability and foreclosure prevention activities for new and refinanced mortgages covers 40 percent of their scorecard emphasis, 30 percent on how well they can increase the role of private capital in the mortgage market in order to reduce taxpayer risk and the final 30 percent is focused on how well they are able to build a new single-family infrastructure for use by the enterprises and also adaptable for use by others in the secondary market in the future.

Compliance Alliance Hot Topic Question of the Week

Q: Is the bank required to report an unsecured, home improvement loan on its LAR?
A: The short answer is – it depends.  Unsecured home improvement loans may be reported if the institution classifies them as home improvement loans.  If they are not classified as home improvement loans, they do not have to be reported.  In other words, if the bank classifies the loan as a Home Improvement loan, then you should report the loan on the HMDA LAR; however, if the loan is not classified as Home Improvement, then the bank would not have to include it on the HMDA LAR.


*Join us January 5 or 7 for a free one-hour webinar to review the benefits of Compliance Alliance. This virtual tour will provide an in-depth look at each of the tools and resource categories available to subscribers. 

Franklin Synergy Bank, Civic Bank & Trust Deal Announced

In a deal expected to close second quarter of 2016, Franklin, TN-based Franklin Financial Network Inc. and unit Franklin Synergy Bank signed a definitive agreement on December 14 to acquire Nashville-based Civic Bank & Trust. The combined company will have total assets of $2.1 billion and a footprint of 13 offices in Davidson, Williamson and Rutherford counties, TN.

TBA's Office Depot Program Offers Members, Associates Savings

Start off 2016 with savings by joining TBA's Office Depot program.  As a customer of the TBA Office Depot Program, you will have access to multi-billion dollar buying power generated by a nationwide alliance of state banking associations.  In addition to office supplies, TBA's Office Depot program includes office furniture; design, print, and copy services; custom business forms; stationery supplies; promotional products; lunch room and janitorial supplies; and technology products.  Current participants in the program have experienced an average savings of 40 percent over their prior office product costs, with no contract or minimum spend required. 

Simply click here to register for an online account or learn more, or contact Stacey Langford.

TBA On the Road

  • TBA's government relations team participates in the final fundraising rush prior to opening day of the Legislative Session January 12.

See where TBA goes while "on the road" by following

@TNBankers or  #TBAontheroad

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