Tennessee Bankers

This Week Newsletter

March 28, 2016 - Issue No. 1613

Banker Action Still Needed on TBA's HOA Lien Legislation

The House Business and Utilities Committee last Wednesday, March 23, passed TBA's legislation to protect lenders' interest during an HOA-initiated foreclosure for delinquent dues.  
Despite intense opposition from HOA interest groups, the committee voted unanimously to advance the legislation after hearing over an hour of questions from members and testimony from TBA General Counsel Tim Amos and Jim McCann, Avenue Bank, Nashville and lobbyists for HOAs.  Bankers who responded to TBA's Action Alert last week also played a key role in passing HB 2401. 
Banker outreach is still needed as the HOAs continue opposition efforts in advance of Tuesday's Senate Judiciary Committee hearing and a pending vote by the full House which could come as early as Thursday.
All bankers are asked to contact their Senator and Representative and encourage them to support SB 2397 and HB 2401. Click here to read TBA's talking points and summary of the legislation. For questions, please contact Tim Amos or Amy Smith Heaslet.

Senate, House Pass TBA Legislation

The Senate last Wednesday, March 23, unanimously approved an amended version of TBA legislation (SB 1972) to increase the amount of a check from $2,500 to $10,000 if written to a deceased person and no estate is open or where one has already closed. 
The original version previously passed by the Senate on Feb. 8 would have increased the amount to $15,000 but was amended prior to passing on the House floor. Now that both chambers have approved the legislation in current form, it will go to the Governor for signature and take effect immediately.

CFPB Broadens QM Coverage for Rural, Underserved Areas

The CFPB last Tuesday, March 22, issued an interim final rule broadening the availability of certain special provisions for small creditors operating in rural or underserved areas.

Under the interim rule, small creditors (banks that make no more than 2,000 first-lien covered transactions and have less than $2 billion in assets) will be eligible for special Qualified Mortgage provisions if they originate at least one covered mortgage loan on a property located in a rural or underserved area in the prior calendar year. Specifically, it allows small creditors to make certain balloon payments, which are otherwise not allowed under the QM rules.

Previously, small creditors were only eligible for these provisions if they operated predominantly in rural or underserved areas. This new rule significantly enlarges that rural and underserved carve-out.

Earlier this month, the bureau issued a rule establishing a process by which businesses and individuals could appeal the bureau's designation of a rural area. The CFPB will accept comments on the interim rule for 30 days after its publication in the final register. To read the rule, click here.

CFPB Issues Advisory on Preventing Elder Financial Exploitation

The CFPB last Wednesday, March 23, released an advisory and report highlighting voluntary best practices for banks to protect seniors from financial exploitation.

The bureau stressed the importance of employee education; proper and timely reporting of suspicious activity; and building strong, collaborative relationships with local law enforcement to deter elder fraud. It also encouraged banks to continue offering age-friendly services to older customers, and to incorporate technologies like predictive analytics into their fraud monitoring programs. To read the CFPB advisory, click here.

Congress Extends Foreclosure Protection for Service Members

Congress voted last Monday, March 21, to renew a part of the Servicemembers Civil Relief Act that provides one-year foreclosure protection for military personnel leaving active duty through 2017. Service members will continue to be protected from foreclosure for one year following the end of their service.

The original extension—which expanded the standard 90-day foreclosure protection for military personnel—expired at the end of 2015. The newly extended protection takes effect once signed by the president, and will be retroactive to Jan. 1, 2016.

TBA Receives Financial Literacy Award from Treasurer Lillard

At a dinner on Wednesday, March 23, Treasurer David Lillard presented the TBA with the Tennessee Financial Literacy Commission Award for the Association's continued commitment to financial literacy. Treasurer Lillard noted the Association's financial commitment and engagement in providing teachers the tools they need to teach fiscal responsibility. Accepting the award on behalf of the TBA, Colin Barrett said, "On behalf of the 210 banks that teach financial literacy every day in branches across our state, it is an honor to partner with the Treasurer and Commission on this outstanding program."

Strategic Technology & Operations Conference Set for April 5 and 6

There is still time to register for the Strategic Technology & Operations Conference, which will be held on April 5 and 6 at the Embassy Suites & Conference Center in Murfreesboro, TN. This year, there are programs designed toward the executive, operations, and technical side of the bank. The conference is appropriate for CEOs, CIOs, CFOs, COOs, senior operations officers, senior department heads, IT directors, and anyone responsible for making technology decisions within your institution.

This conference includes a sold-out exhibit show of technology vendors. Join us in the exhibit hall to learn the latest and greatest in the IT and operations world of banking. Also be sure to check out the attendee list, which is updated at the beginning of each week. 

The Southeastern School of Commercial Lending

Brochures are now available for the 2016 session of The Southeastern School of Commercial Lending, taking place May 22-27. This is one of three annual intermediate-level lending schools that are hosted by TBA and cosponsored by the Georgia, Louisiana, and Mississippi Bankers Associations. Classes are held at the TBA Barrett Training Center. This is a residence school, so all participants are required to stay at the Loews Vanderbilt Hotel during the week. Registration is open now, and attendance is limited to 65 participants, so sign up your lending employees today. 

Secured Lending Early Registration Deadline April 1

The Secured Lending: Protecting the Bank's Security Interest program will provide a thorough overview of the loan and credit file documentation requirements necessary to attach and perfect the bank's security interest in various classes of collateral in secured commercial lending transactions.

The program, which takes place April 11 at the TBA Barrett Training Center, will focus primarily on the importance of establishing and monitoring the value of the bank's collateral, from loan origination through loan repayment, including six collateral monitoring techniques. Click here to register, early registration April 1.

Welcome New Associate Members

TBA welcomes two new associate members, Invicta Technology, LLC, Joelton, in the category of Information Technology, and Baird, Nashville, in the category of Investment Services. Please thank these companies for their support of the Tennessee banking industry through membership and learn more about all of TBA's associate members in our online directory.

TBA On the Road

  • TBA hosts the Human Resources Conference in Murfreesboro. 
  • Bankers participate in the Retail Banking Forum and IT/Operations/Information Security Officer Forum in Nashville.

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

@TNBankers or  #TBAontheroad

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