Tennessee Bankers

This Week Newsletter

August 08, 2016 - Issue No. 1632

Incumbents Prevail in State Primary Elections

From the moment early voting began weeks ago until the polls closed last night, many predicted there would be several upsets and close races. But the biggest surprise of the night was that there weren't many surprises.  
Of the 40 senators and representatives who faced challengers in their primaries, only two House members were defeated.  Rep. Curry Todd (R-Collierville) was defeated by Mark Lovell, a Memphis native and business owner, by a vote of 1,493 to 4,493. Embattled Rep. Jeremy Durham (R-Franklin), who was the focus of a recent investigation by the Attorney General, was soundly defeated by political newcomer Sam Whitson, receiving only 645 votes to Whitson's 3,682. 
Other incumbents who faced what was considered significant opposition but ultimately prevailed, include Sen. Dolores Gresham (R-Somerville); Reps. Martin Daniel (R-Knoxville); Judd Matheny (R-Tullahoma); and Charles Sargent (R-Franklin).
And a familiar face will fill the vacant seat left by the retirement of Lt. Gov. Ron Ramsey (R-Bristol). Jon Lundberg (R-Bristol), current Chairman of the House Civil Justice Committee handily won a four-way race for the seat, receiving 55 percent of the votes.
For a complete list of all election results, click here.

Kustoff Wins 8th Congressional District Primary

Attorney David Kustoff defeated 12 opponents to win the Republican primary for the 8th Congressional district, a seat left vacant by the retirement of Stephen Fincher. He received 27 percent of the vote, with second place finisher George Flinn receiving 23 percent. Current state senator and Chairman of the Judiciary Committee came in fourth place, receiving nearly 13 percent of the vote. Kelsey, who was not up for re-election in the senate, will return to Nashville in January.
Kustoff, who also serves on the board of directors for BankTennessee, Collierville, is expected to easily win the November general election in the heavily Republican district.
For the other eight U.S. House races, all incumbents prevailed despite a few who faced significant challengers. Diane Black (R-Dist. 6) ran a strong campaign against former state senator Joe Carr, handily winning with 63.6 percent of the votes. Scott DesJarlais (R-Dist. 4) faced off against self-funded Grant Starrett, with DesJarlais receiving 52 percent to Starett's 43 percent of the votes.  

Bank Diversity Self-Assessments Strongly Encouraged by Agencies

The federal banking agencies announced last week that they are now urging banks to conduct voluntary diversity self-assessments based on standards issued by the agencies last summer. The standards cover areas such as organizational commitment to diversity, workforce and employment practices, and supplier diversity. 
The agencies said information about submitting the assessments will be provided at a later date, with the first round of assessments covering calendar year 2015. Banks are "strongly encouraged to disclose on their websites their diversity policies and practices," and to "provide their policies, practices, and self-assessment information to their primary federal regulator," the agencies said.
The diversity policy statement principally focuses on organizations with more than 100 employees, although smaller banks are encouraged to use the diversity standards "in a manner appropriate to their unique characteristics." Read more. Read the FAQs.

TBA Urges Senators to Support TAILOR Act

TBA and all other state associations wrote to senators last Tuesday, August 2, urging them to co-sponsor the TAILOR Act, which would direct financial regulators to tailor regulatory actions based on a banks' business models and risk profiles rather than just asset size.

The TAILOR Act (S. 3153) was jointly advocated by TBA, ABA and the other state associations. The House version cleared the House Financial Services Committee in March and is waiting for a floor vote. Read the letter.

FHFA Pulls Preferred-Language Question from Loan Application

The FHFA last week agreed not to include a question about borrower language preferences in the Uniform Residential Loan Application. Trade associations strongly advocated against its inclusion, raising concerns that including such language could lead customers to expect that they would receive communication in their desired language, and could lead lenders open to UDAAP liability if they did not communicate in the specified language.
FHFA acknowledged that there were many unresolved issues surrounding the question's inclusion, and that resolving those issues would unduly postpone the rollout of the new URLA. However, the FHFA announced it will instead work with other agencies and industry stakeholders on gathering data on customer language preferences.

CFPB Proposes Amendments to TRID Rule

The CFPB on July 29 proposed amendments to the TILA-RESPA integrated disclosures, including some to improve the ability of lenders to comply with TRID and avoid unnecessary constrictions of mortgage credit.

Among the items included in the 293-page proposal are tolerance provisions for the disclosed total of payments, making the treatment consistent with pre-TRID practices and paralleling the TRID tolerances for disclosures of finance charges. The bureau would add commentary facilitating the customary sharing of disclosures with third parties, such as sellers and real estate brokers. The proposal would partially exempt certain housing assistance loans from TRID requirements and extend the rule's coverage to all cooperative units. Read the proposed rule.

Welcome New TBA Associate Member

TBA welcomes new Associate Member CBSi, Consolidated Banking Services Inc. in the category of Security 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.

TBA is the Local ABA Training Resource Provider for Banks in Tennessee

ABA Training is a comprehensive source for training and education available through Tennessee Bankers Association, your local American Bankers Association (ABA) training provider.

ABA Training includes extensive learning opportunities suited to specific job roles, in both facilitated and self-paced online formats, as well as in person. Online training delivers unmatched content that meets the needs of today's learners and the changing demographics of the banking industry. In addition, many courses meet the credit requirements for ABA certifications, and of the Institute of Certified Bankers (ICB).

For more information, click here or contact Debbie Brickles.

Bankers Directory Orders Fulfilled This Week

The 2016/2017 Bankers Directory has arrived. CEOs, out-of-county main office branches, and associate members each receive one complimentary copy of the directory. Those and all other orders will be mailed this week.

The Bankers Directory is a compact, handy reference that puts information about all of Tennessee's commercial banks and trust companies at your fingertips. The directory contains complete financial data for Tennessee institutions taken from the 2015 year-end FDIC Call Reports.

Additional copies are available for purchase

TBA On the Road

  • TBA holds the annual Leaders in Banking Excellence induction ceremony in Nashville.
  • TBA Board of Directors and Young Bankers Board of Directors hold their quarterly meetings in Nashville.
  • Senior Compliance Officers and Senior Human Resources Directors hold their forums in Nashville.

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