Tennessee Bankers

This Week Newsletter

March 21, 2016 - Issue No. 1612

Action Alert: Contact Lawmakers in Support of TBA's HOA Lien Priority Bill

TBA's General Counsel Tim Amos sent an Action Alert last Thursday, March 17, to TBA members asking them to contact their legislators and encourage their support of TBA legislation to protect lenders' lien priority in HOA foreclosure proceedings (SB 2397 by Overbey / HB 2401 by Travis).  Current law allows for HOAs to take priority over and potentially extinguish a lienholder's interest. FHFA has issued guidance warning states against laws that could jeopardize their lien priority during an HOA foreclosure. 
The House bill passed the House Business and Utilities Subcommittee last Wednesday, March 16, despite strong opposition from Community Associations Institute, the national association representing HOAs.   The legislation will go before the full House Committee on Wednesday and the Senate Judiciary Committee on Tuesday.  We need your support to combat aggressive lobbying opposition by the national association for HOAs. 

Read the full alert here along with the list of members on the committees and the instructions for contacting them in advance of this week's hearings.

TBA Legislation Unanimously Passes TN House

The House of Representatives last Monday, March 14, passed by a unanimous vote of 93-0 TBA legislation to increase the amount of a check from $2,500 to $10,000 that a bank may negotiate if written to a deceased person where no estate is open or one that has already closed.
The legislation, HB 1894 by Rep. Patsy Hazlewood, originally was drafted to increase that amount to $15,000, but was later amended as a compromise between TBA and members of the House.  The bill will go back to the Senate for final approval on Monday night to conform the House version.  The Senate passed the bill on Feb. 8 that provided for an increase of the original amount of $15,000.

TN Bankers Visit Congressmen in DC

A delegation of 15 Tennessee bankers and TBA staff traveled to Washington, D.C. last week and joined over 1,000 bankers at the ABA Government Relations Summit. Attendees heard keynote presentations by House Financial Services Committee Chairman Jeb Hensarling (R-TX) and Senate Banking Committee Chairman Richard Shelby (R-AL), as well as a bipartisan panel of House members.  This year's Summit also featured Paul Willson, Citizens National Bank, Athens, TN, who serves as the Chairman of ABA's Government Relations Council.
View the TBA pictures here. For a recap of the event as documented on social media follow #ABASummit or @TNBankers on Twitter.
TBA staff and Tennessee bankers spent time on the Hill meeting with our Congressional delegation, including Sens. Corker and Alexander, Reps. Fleischmann and Fincher.  The meetings focused on advocating for bipartisan legislation that would require federal regulators to put forth "tailored" legislation that differentiates by business model and risk profile rather than asset sizes of banks. 
The TN group also emphasized the need to bring oversight to the credit union industry's regulator given recent efforts to bypass Congress and implement rules to expand CUs' business lending authority and field of membership.  Senator Corker supported calling for an NCUA hearing before the Senate Banking Committee.

TN Congressmen Urged to Join Bipartisan Tailored Regulation Letter

During office visits in DC last week, Tennessee bankers also encouraged their lawmakers to sign onto a just-released bipartisan letter urging federal agencies to alleviate the regulatory burdens community banks face by "tailor[ing] regulations so that they are the right "fit" for the institution involved.  The letter, co-authored by Reps. Scott Tipton (R-CO) and David Scott (D-GA),   is directed to the heads of the Fed, OCC, FDIC, NCUA, and CFPB.

Reps. Fleischmann and Duncan signed the letter following the bankers' request.  TBA will follow-up with other Tennessee Congressmen and ask them to do the same.  Bankers are also encouraged to ask their Congressmen to sign the letter and ask Senators Corker and Alexander to support a similar letter in the Senate.  Congressmen who would like to sign onto the letter should contact Chris Jorgenson in Rep. Tipton's office at 202-225-4761 or Christian.Jorgenson@mail.house.gov.  To read the letter, click here.

Lt. Gov. Ron Ramsey Will Not Seek Re-Election

Lieutenant Governor Ron Ramsey (R-Blountville) announced last Wednesday on the Senate floor that he will not seek re-election after his term expires this year.  Ramsey has served in the Tennessee General Assembly for 24 years, including 4 in the House and 20 in the Senate.  When he was elected by his peers in 2007 as Senate Speaker, he became the first Republican to hold the position in 140 years.

Cordray: CFPB Will Issue Further TRID Guidance

CFPB Director Richard Cordray said during congressional testimony last Wednesday, March 16,  that the bureau would provide further question-and-answer guidance to the financial and housing industries on complying with the TILA-RESPA integrated disclosures, which took effect in October 2015.

Cordray emphasized that the CFPB's enforcement of TRID remains "corrective and diagnostic" for lenders making good-faith efforts to comply with the new disclosure requirements.

In related news, the TBA is hosting a TRID Essentials workshop in May in four locations across the state.  The early registration deadline for all sites is May 9.

Young Bankers Leadership Convention, Knoxville April 24-26

Join the TBA Young Bankers Division for the 2016 Leadership Convention April 24-26 at the Hilton Knoxville Downtown.  The Leadership Convention focuses its business sessions on banking trends and leadership, with moderated roundtables and two evening receptions to offer ample time for attendees to develop their statewide peer network.

Register for the convention and book your room at the Hilton at the $99 convention room rate before the April 1 room block deadline – rooms will sell out! 

Highlights of the 2016 business program include TDFI Commissioner Greg Gonzales speaking at the PEP Awards Ceremony, a keynote address on improving memory by Paul Mellor, and former UT football player Inky Johnson will close the convention with his inspirational message of perseverance found through relentless determination.Topics include:
· Leveraging emerging technologies
· Congressional actions, inactions and the Dodd-Frank Act
· Observations in loan portfolio growth among community banks
· A state of the state of mergers and acquisitions
· Evolution in the cybercrime industry

Thank you to our sponsors!

What's Inside The Tennessee Banker March/April Issue

The March/April issue of The Tennessee Banker is hitting desks this week.  Inside the pages you'll find our member feature story on Randy Huffstetler of Greenfield Banking Company, a first look at the Annual Meeting to be held June 5-7 at Belmond Charleston Place, Charleston, SC, an interview with TN State Treasurer David H. Lillard, Jr., photo recaps from the Legislative Reception and Credit Conference, an overview of the 2016 TBA Strategic Plan in Colin Barrett's executive column, plus much more content that you'll only find within the covers of TBA's membership magazine.

Register Today for TBA Annual Meeting, June 5-7, Charleston S.C.

Register now to attend the TBA Annual Meeting, June 5-7, at the Belmond Charleston Place in Charleston, SC.  The program features two general business sessions, a golf tournament, the Chairman's Reception, Coffee with the Commissioner, a dessert reception in the Riviera Theater, a sold-out exhibit hall, a harbor cruise, a final banquet with entertainment by Jason D. Williams, and much more.  Registration information can be found online here, or contact Penny Powlas at the TBA office.

Compliance Hot Topic Question of the Week

Q: Will the bank lose its exempt status as a small creditor under the HPML escrow rule as a result of being required to escrow for flood insurance?

A: Yes. The small creditor exemption in the HPML escrow rule requires, among other things, that the Bank, together with its affiliates, does not escrow for any mortgage it or its affiliates currently services (with two unrelated exceptions). If the bank is required to escrow for flood insurance on even one of its loans, it will fail to meet this requirement.

Learn more about membership with Compliance Alliance by attending a free live demos, held every Tuesday at 10 a.m. Central and Thursday at 1:00 p.m. Central.
Compliance rules and regulations change quickly! For timely compliance updates, subscribe to Compliance Alliance's email newsletters. To learn more about becoming a member contact info@compliancealliance.com or TBA's Stacey Langford.

Nashville Business Incubation Center Grant Program Expands Statewide

Each year Nashville Business Incubation Center works with small businesses in and around the Nashville area to offer them traditional (on-site) and virtual (online) business incubation services that will help them grow their business in meaningful and sustainable ways.

Currently they received a grant opportunity for Incubator Without Walls to expand the virtual program throughout the state. This program, valued at $10,000, affords the same quality services as the traditional incubation program without the residency component at no cost to participating companies.

To refer a commercial customer or to learn more information, please contact Mark Taylor, mailto:mtaylor@nbiconline.comor  615-963-7196.

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