Tennessee Bankers

This Week Newsletter

April 24, 2017 - Issue No. 1716

General Assembly Overwhelmingly Supports TBA Elder Exploitation Legislation

Last week the Tennessee General Assembly gave unanimous approval to the Elderly and Vulnerable Adult Financial Exploitation Prevention Act. This legislation gives bankers additional tools and greater flexibility to help protect their elderly or vulnerable adult customers when they have reason to suspect financial exploitation has occurred or is being attempted. Under the leadership of bill sponsors Senate Majority Leader Mark Norris (R-Collierville) and Representative Kevin Brooks (R-Cleveland), SB1267/HB1064 was approved by a unanimous vote in the Senate and by a near unanimous vote of 89-1 in the House, with only Rep. Mark Pody (R-Lebanon) voting no. The legislation now heads to the Governor for his signature.

Bank Interest Rate Increase Approved by General Assembly

Last Monday the House followed the actions of the Senate in approving TBA's legislation that increases the maximum permissible interest rate under the Credit Card State Bank Act, Tennessee's preferred bank lending statute, from 21 percent to 30 percent. Effective upon signature of the Governor, the measure sponsored by Sen. Jim Tracy (R-Shelbyville) and Rep. Patsy Hazlewood (R-Signal Mountain) was approved by a Senate vote of 22-6 and a House vote of 73-12. View the vote count here.

Hensarling Releases 2017 Regulatory Relief Legislation

House Financial Services Chairman Jeb Hensarling (R-Texas) has released the 2017 text of his Financial Choice Act. Scheduled for a hearing this week, the 600-page bill aims at rolling back and reforming parts of the Dodd-Frank Act and providing regulatory relief for banks of all sizes.


The Choice Act contains numerous regulatory relief measures and would provide a Qualified Mortgage safe harbor to portfolio mortgage loans, tailor supervision to banks' risk profiles and business models, raise the small bank holding company policy statement asset threshold to $5 billion, create an independent exam appeals process, stop data collection on small business loans, clarify the QM rule's points and fees test, expand the short-form Call Report, enhance mortgage relief for smaller banks and smaller mortgage originators, repeal the Durbin Amendment and prevent future "Operation Choke Point" activities.


The bill reforms the CFPB, including stripping examination powers and bringing it, along with the FDIC, OCC, FHFA, NCUA and supervisory functions of the Fed into the congressional appropriations process, mandate cost-benefit analyses of regulations and require congressional approval for "major rules."


Additional regulatory relief would be available for banks maintaining a 10 percent non-risk weighted leverage ratio that elect into the alternative regime.

Governor's IMPROVE Act Clears General Assembly

The Governor's IMPROVE Act was approved by the General Assembly last week, putting to rest the most controversial and widely reported issue of the 2017 session. After more than four hours of debate on the House floor, and 80 individual amendments to the bill, that chamber passed the bill in the Governor's format by a vote of 60-37. It was passed by the Senate just a few hours later by a vote of 25-6. In the approved version, the measure raises the gas tax by six cents per gallon and the diesel fuel tax by ten cents per gallon—phased in over a three-year period, in addition to a cut in corporate taxes for manufacturers, a reduction on the state sales tax on groceries and a cut in the Hall income tax on investment income.

Promontory Interfinancial Network Webinar May 11

The banking industry is changing, and TBA endorsed partner Promontory Interfinancial Network can help Tennessee banks be prepared with the right tools to navigate this changing environment. Do you have the tools necessary to manage your balance sheet efficiently, attract valuable customers, free up collateral, and improve asset liquidity—all while providing your customers the protection and service they expect? Join Dave Still with Promontory on May 11, 10 a.m. CT/ 11 a.m. ET for a free webinar to learn how using Insured Cash Sweep® and CDARS® can help provide your bank with tools to meet new challenges. Register here.

CFPB Announces 2017 Fair Lending Priorities

The CFPB released its fifth annual Fair Lending Report, indicating it will prioritize redlining, mortgage and student loan servicing and small business lending in its fair lending enforcement activities this year. Specifically, the bureau said it will evaluate whether lenders have "intentionally discouraged" potential applicants in minority neighborhoods from applying for credit and whether mortgage or student loan borrowers who fall behind face more difficulty in working out new payment plans because of a protected characteristic. The bureau will also move ahead with its plans to collect data on and analyze small business lending to woman- and minority-owned firms, as authorized by Section 1071 of the Dodd-Frank Act.

Teach Children to Save Day Takes Place April 28

Now celebrating its 20th anniversary, Teach Children to Save Day encourages banker volunteers to visit schools and youth programs in their communities to deliver savings lessons. Registered banks receive access to lesson plans, activity sheets, media tools, promotional materials and much more. Everything you need to make your event an educational and memorable experience is provided.

Register for the Graduate School of Banking at LSU

Register, or encourage a colleague to register, for The Graduate School of Banking at LSU. Classes begin in just a few weeks at the premier graduate school for all Tennessee bankers. To register, go to www.gsblsu.org. For more information, contact LSU Trustee Robby Moore.

Steve Rains, President and CEO of Progressive Savings Bank, Passes Away

On Monday, April 17, Steve Rains passed away at his home in Jamestown. Steve was a great supporter of the Tennessee banking industry, always quick to help with TBA's government relations efforts and an outspoken advocate for BankPac. Steve was a good friend to all who knew him and will be missed. Please keep Steve's wife Emily, and children Jack and Kate, in your prayers. In lieu of flowers, the family has requested donations be made to The Rains Foundation and mailed to: Rains Foundation, c/o Progressive Savings Bank, 500 North Main Street, Jamestown, TN 38556. An obituary can be found here.

TBA On the Road

  • More than 130 gather in Nashville for the Young Bankers Division Leadership Convention, which begins Sunday.

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

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