Tennessee Bankers

This Week Newsletter



May 14, 2018 - Issue No. 1819


Speaker Ryan Confirms House Will Vote on S. 2155

The House will vote on S. 2155, the bipartisan financial regulatory reform bill advanced by the Senate in March, while the Senate will take up a set of additional reform bills passed by the House Financial Services Committee, according to an agreement announced by House Speaker Paul Ryan (R-Wis.) last week. Both Ryan and House Majority Leader Kevin McCarthy have previously signaled that the House could pass the bill in May, but Ryan offered no further comments on the timing of a vote.

TBA and over 90 bankers will attend the association’s annual Washington Conference this week and will spend their time advocating for swift passage of S.2155. Other priority issues the group will discuss with regulators and Congressmen while in D.C. include modernization of CRA and BSA as well as leveling the playing field with credit unions.

House Votes to Overturn CFPB Indirect Auto Lending Guidance

The House last Tuesday reversed the CFPB’s 2013 guidance on indirect auto lending. In a 234-175 vote, the House passed a Congressional Review Act resolution that would invalidate the guidance, which sought to impose limits on how and what indirect lenders pay car dealers who provide financing and how much discretion dealers have to set loan terms and rates. The Senate previously passed a similar measure to repeal the guidance.

Normally the CRA can only be used to invalidate regulatory actions issued within the previous 60 legislative days, but late last year, the Government Accountability Office formally ruled that the guidance constituted a rule, which – even though it was issued without notice and comment—was a general statement of policy with general applicability. That ruling restarted the CRA clock.

House Passes SBA 7(a) Reform Bill

By a voice vote, the House last Tuesday passed H.R. 4743, a bipartisan bill that would strengthen the SBA Office of Credit Risk Management and Lender Oversight Committee, codify the SBA’s “Credit Elsewhere Test,” and allow the SBA to lift the cap on general business loans if it is reached. The banking industry has been supportive of the legislation and will continue to work with the House and Senate to advance it.

As Refis Dry Up, Mortgage Originations Fall in 2017

The FFIEC last week released the 2017 HMDA data on mortgage lending transactions at 5,852 financial institutions. The data encompasses 12.1 million mortgage applications.

Overall, the data showed that total mortgage loan originations declined 12.4 percent to 7.3 million in 2017, which was due to a sharp fall in refinance originations. Meanwhile, originations on loans secured by one- to four-family properties rose as did the number of first-lien, owner-occupied home-purchase originations.

Loans backed by the Federal Housing Administration, Veterans Administration or federal farm programs accounted for 36 percent of all new mortgages in 2017, down from 39 percent in 2016. The HMDA data also showed that black borrowers increased their share of originations for the fourth consecutive year, while originations among Hispanic borrowers held steady.

“Higher-priced” loans—those with APRs that exceed prime offer rates by 1.5 points for first-lien loans—accounted for 8.4 percent of home-purchase loans in 2017, up from 7.7 percent the year before. View the data.

Buy 2, Get 1 Free Webinar Special

Buy any two webinars and get a coupon code for one free until May 31. Here’s how to get your free webinar: Add two webinars to your cart. Before completing your order enter “Send my free webinar code!” in the Comments box. A coupon code for your free webinar will be emailed to you within one business day. (Not applicable for full Series orders)

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Welcome New Associate Member

TBA welcomes new associate member Luse Gorman, PC in the category of Legal Services. Please learn more about each of our associate member companies by visiting our online directory of associate members and thank them for their support of the Tennessee banking industry through membership.

TBA On the Road

  • TBA's largest Washington Conference kicks off May 14 with 96 registered.
  • TBA Board of Directors holds their quarterly meeting.
  • The Independent Division Board of Directors holds a board meeting in Washington.
  • TBA hosts associate members Friday for the annual Appreciation Picnic.

See where TBA goes while "on the road" by following @TNBankers.