Tennessee Bankers

This Week Newsletter

June 26, 2017 - Issue No. 1725

House Passes Flood Insurance Bills

The House Financial Services Committee last Wednesday approved five bills as part of a legislative package intended to reauthorize the National Flood Insurance Program, which is set to expire on Sept. 30.

Lawmakers unanimously approved two bills—H.R. 2875, the National Flood Insurance Program Administrative Reform Act of 2017, which would make administrative changes to the NFIP to increase fairness and accuracy, and decrease taxpayer risk; and H.R. 1422, the Flood Insurance Market Parity and Modernization Act, which would encourage development of a robust private flood insurance market as an alternative to the NFIP.

The committee also approved by a voice vote H.R. 1558, which would amend the National Flood Insurance Act of 1968 to ensure community accountability for areas repeatedly damaged by floods.

The committee passed two additional bills—H.R. 2264, the Taxpayer Exposure Mitigation Act of 2017, which would enable the NFIP to engage in private-sector risk transfer deals and allow the development of private or community flood maps as an alternative to NFIP's outdated maps; and H.R. 2565, which would require the NFIP to study how it uses replacement costs in setting premiums and H.R. 2565.

Together with H.R. 2874 and H.R. 2868, which were passed by the committee last week, the bills will now move to the full House for consideration. ABA will continue to work closely with lawmakers to ensure that the NFIP is renewed prior to its expiration date on Sept. 30.

Yellen Signals Greater Transparency in Stress Tests

In a recent letter to Rep. Blaine Luetkemeyer (R-Mo.), Federal Reserve Chairman Janet Yellen said that the Fed will provide banks with more details on the stress testing process in response to calls from lawmakers and industry groups for greater transparency. The results of this year's stress tests will be published this month.

Along with the results, the Fed will release information on how it approaches the qualitative assessment and offer specific examples of how institutions in the past failed to meet financial stability requirements, Yellen said. In a letter last month, Luetkemeyer and Keith Rothfus (R-Pa.) noted that the Fed's current stress testing process lacks transparency and that it could do more to increase public awareness of what goes into its scenario design for the capital planning exercise. Yellen added that the Fed will release instructions and scenarios for the next testing cycle by Feb. 15, 2018.

Trump Nominates James Clinger for FDIC Chairman

President Trump on June 16 said he would nominate James Clinger to serve as FDIC chairman. According to the White House, Clinger will be nominated first to fill the long-vacant director position on the FDIC board and then to serve a five-year term as chairman after Martin Gruenberg's term ends in November.

Clinger has been chief counsel to the House Financial Services Committee for a decade. During the George W. Bush administration, he served as a deputy assistant attorney general, prior to which he was a staffer on the Financial Services Committee for another decade. He began his legal career in private practice. Read more.

Mike Edwards Named TBA BankPac Chairman

Mike Edwards, president and COO of Paragon Bank, Memphis, was named the 2017-2019 TBA BankPac Chairman. BankPac is the TBA's political action committee that advocates for the banking industry's legislative interests and supports pro-banking candidates at the state and federal level.

"I am excited for Mike to serve as Chairman of TBA BankPac," said TBA President and CEO Colin Barrett. "He is an active political advocate at both the state and federal levels and will bring valuable insight to BankPac. I look forward to continued success in both raising funds from our member banks and advocating for our industry under Mike's leadership."

Annual Meeting Speaker Mark Cleveland Launches Kickstarter Campaign

During the TBA Annual Meeting, entrepreneur Mark Cleveland spoke of his educational initiative to bring manufacturing technology to students through high quality airplane kit building. This project is intended to fuel hands on learning through the aviation industry. TELEMASTER airplane kits will be made in the USA by students with the oversight of a supply chain system.

The curriculum includes today's best technology, CAD design, laser cutting equipment, 3D printing and part modeling, and instant prototyping. This will provide high schools looking for a technology-based, hands-on learning experience with the day-by-day teaching resources they need. Many convention goers spoke with Mark about the ability to bring this to your local schools. Mark has now launched his Kickstarter campaign to get this off the ground. If you are interested in learning more, please click here or email Mark.

Plan Now for TBA's August Lending Workshops

This August, TBA will offer several programs focused on critical issues for your lending team. Jack Holzknecht will instruct TRID Essentials and Implementing the Revised HMDA Rules in Knoxville August 7 and 8 and in Nashville August 9 and 10. Later in the month, David Kemp is the instructor for two Nashville two-day programs, Training the Credit Analyst August 22-23 and Basic Consumer Lending August 24-25. To register for any of these programs visit the TBA Calendar of Events or contact Debbie Brickles for more information.

TBA/SIGNiX Webinar on Signing Loan Docs Digitally Recording Available

Did you know, in 2010, both houses of Congress passed a resolution recognizing June 30th as National ESIGN Day, commemorating the 10-year anniversary of the enactment of the Electronic Signatures in Global and National Commerce Act (ESIGN) to ensure that a signature, contract, or other record relating to a transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form. Celebrate this day listening to the recorded version of the TBA/SIGNiX webinar hosted last week, 3 Reasons Why You Should Be Signing Loan Docs Digitally. Panelists included Paige Adams, SIGNiX, Sharon Greene, Citizens National Bank, Candace Colvard, Mountain Valley Bank, and Stacey Langford, TBA. Learn more about SIGNiX and digital signatures by contacting Paige Adams.

Welcome TBA Associate Member

TBA welcomes new associate member Lawless & Associates, P.C. in the category of legal services. Please thank this company for their support of the Tennessee banking industry through membership and when evaluating vendor partners, review the list of all TBA associate members in our online directory.

FPSI This Week: The Growing Threat of Ransomware

With the increase in cyber attacks worldwide, there is also an increased likelihood for ransomware to find its way onto your institution's computer systems. Learn more about this growing threat from ABA Insurance Services. ABA Insurance Services is an endorsed partner of the Tennessee Bankers Association and Financial Products and Services, Inc.

For more information on how to better protect your bank from a cyber attack, please contact your local Financial PSI representative or the agency manager, Brian Mobley.

TBA On the Road

  • Stacey Langford visits members in East Tennessee.
  • The Senior Human Resources and CFO/Controller Forums meet in Nashville.
See where TBA goes while "on the road" by following @TNBankers.