Tennessee Bankers

This Week Newsletter

April 04, 2016 - Issue No. 1614

House and Senate Floor Votes This Week on TBA's HOA Lien Legislation

The Senate Judiciary Committee on Wednesday, March 30, passed TBA's legislation (SB 2397 / HB 2401) to protect lenders' interest during foreclosure by an HOA for delinquent dues. Current law allows provides HOAs a super-priority lien that could extinguish a first mortgage.
Despite strong opposition efforts by the Community Association Institute in Washington, DC, and their local lobbyists, Senate Judiciary Committee members advanced SB 2397 by a vote of 8-0-1. 
HB 2401 will be on the House floor Monday evening for a final vote. The Senate is expected to vote on SB 2397 later in the week.
Banker outreach to legislators is still needed as the HOAs continue their efforts to defeat the legislation or defer it to a summer study. Please contact your 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.

End of Session Approaching

With the majority of Senate and House Committees closed for business for the year, the end of session is quickly approaching. This week marked the resolution of the controversial municipal de-annexation legislation. The Senate State and Local Government Committee voted 5-3-1 on Wednesday, March 30, to send it to a summer study after fierce debate on Tuesday and the prior week.
One of the last major hurdles before adjournment—approving the budget—still remains. Governor Haslam last week released additions to the FY 2016-2017 budget that is expected to be considered this week. The appropriations amendment to SB 2653 / HB 2629 follows closely to the original budget the governor presented on February 1, with a few additional funding priorities due to higher than expected sales tax revenues. Click here to read more.
If lawmakers remain on track, they will likely meet their target adjournment date of April 20, at the latest.

TN Congressmen Sign Letter Asking Agencies to Consider Tailored Regulation

In a letter to the federal banking agencies last Monday, March 28, a bipartisan group of 133 House members, including TN Reps. Blackburn, DesJarlais, Duncan, Fincher, and Fleischmann, asked what regulators are doing to tailor their rules to the diverse entities they supervise and to identify areas where they need additional legislative authority to tailor rules.

Led by Reps. Scott Tipton (R-CO) and David Scott (D-GA), the lawmakers emphasized "the failure to effectively calibrate the regulatory response to match the level of risk posed by the institutions has had a real impact on the ability of institutions to serve their communities." Tipton is the lead sponsor of the TAILOR Act, which would require regulators to take factors like asset size, business models, and risk profiles into account when developing regulations.

The TAILOR Act recently cleared the House Financial Services Committee and is waiting for a floor vote. Tennessee bankers and TBA staff advocated to lawmakers during a recent trip to DC to sign onto Tipton's letter. Click here to read the letter.

CFPB Posts Recording of TRID Construction Lending Webinar

The CFPB posted a recording of its March 1 webinar on complying with the TILA-RESPA integrated disclosures for construction loans. The questions asked during the webinar are also included in the bureau's updated index of all questions it has answered about TRID in a series of six webinars to date. Click here to access the recording.

CFPB Updates Compliance Guides to Reflect Rural/Underserved Rule

The CFPB updated compliance guides related to Reg Z to reflect the bureau's recent rule broadening the availability of certain special provisions for small creditors operating in rural or underserved areas.

The bureau updated the compliance guides for the Ability to Repay/Qualified Mortgage, Home Ownership and Equity Protection Act and the TILA Higher-Priced Mortgage Loans Escrow rules, as well as the transaction coverage and exemption chart, the small creditor QM flowchart and the ATR/QM comparison chart. Click here to view the updated guides.

CFPB Prepaid Card Rules to Be Delayed

The CFPB is expected to delay the release of its new rules for prepaid cards until later in the second quarter, Politico reported last week. According to sources, the rules, which were expected to be finalized earlier this month, will not be released until May or June.

Invitation to Participate in TBA Salary and Benefits Survey

The TBA Salary and Benefits Survey is a proven valuable resource for our member banks. The shared information you generously provide assists TBA members in their compensation budgeting process. This survey report will provide salary and bonus benchmarks for 239 positions, as well as information on benefits, incentives, director compensation, and human resource practices. This survey report also will allow you to benchmark your bank's compensation practices against other similar banks.
All participating members will receive a free PDF copy of both the Salary and Benefits Survey; however, in addition, by participating in the survey, you will receive 60 percent off the retail price of National or Regional survey reports.
The deadline to participate is June 1, 2016. For more information, please contact TBA's Sharon Justice-McCray.

Inky Johnson to Close Leadership Convention

Knoxville is host-city to the 2016 Leadership Convention, April 24-26, and former University of Tennessee football player Inquoris "Inky" Johnson will close the event with his inspirational message of perseverance found through relentless determination. The Leadership Convention also features top-of-mind industry topics including cybersecurity, emerging payments technologies, federal regulatory updates, and the M&A landscape for Tennessee. Attendees also will hear from Commissioner Greg Gonzales and a high-energy session on building a better memory. The early registration deadline is April 10, 2016. Click here to sign up.

Welcome New Associate Member

TBA welcomes new associate member NCR in the category of Electronic Banking Services. Please thank this company for their support of the Tennessee banking industry through membership and learn more about all of TBA's associate members in our online directory.

Submit Your Bank's Community Involvement, News, and Promotions to TBA

We want to know the latest news about your bank for possible inclusion in The Tennessee Banker magazine. Please submit text and photos to Tyler Nelson about the following items: 

  • Job promotion announcements
  • Bank celebrates milestone or receives an award
  • Opening a new branch
  • Community involvement

TBA On the Road

  • Murfreesboro will host the Strategic Technology & Operations Conference.
  • The BSA/AML Compliance School takes place in Nashville.

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

@TNBankers or  #TBAontheroad

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