Tennessee Bankers

This Week Newsletter

September 18, 2017 - Issue No. 1737

TBA and Tennessee Bankers Push Priority Issues on Capitol Hill

TBA staff and a small group of Tennessee bankers from across the state visited with both Senators Alexander and Corker and seven members of Tennessee’s Congressional delegation or their staff last Tuesday. The Tennessee group arrived in D.C. with a list of key issues and received positive feedback in all meetings on issues ranging from regulatory relief, tax reform, and credit unions.
The group advocated for regulatory relief in the Senate, although relief as comprehensive as the Financial CHOICE Act passed by the House earlier this year is unlikely. Sen. Corker, a member of the Banking Committee, was optimistic that a regulatory relief package will get out of the Senate Banking Committee in the coming weeks.
All of Tennessee’s lawmakers indicated that House and Senate leadership is focused on tax reform in the short term and are hopeful, but not certain, that reform can pass both chambers. Although leadership is closely guarding details of their plan for tax reform, Tennessee’s bankers advocated to their members the importance of reducing the corporate tax rate and preserving the interest deduction.
Tennessee bankers also encouraged their lawmakers to push for greater transparency with executive compensation for federal credit unions. Unlike state credit unions and virtually all other nonprofit organizations, FCUs, because of an IRS policy, are not required to disclose executive compensation. Most lawmakers were surprised to learn this and agreed on the need for transparency, with some committing to push the IRS on this issue.

FEMA: Hurricane Harvey Could Cost NFIP $11B

The Federal Emergency Management Agency estimates that the total cost to the National Flood Insurance Program following Hurricane Harvey could total as much as $11 billion, according to reports last week, exceeding the program’s current borrowing authority and likely requiring Congress to approve an increase.
FEMA Director Roy Wright noted that the NFIP currently has $5.8 billion remaining under its $30 billion borrowing authority, in addition to about $1.5 billion in on-hand cash that can be used to pay claims. Thus far, FEMA has had 84,000 claims from Harvey damage, totaling $177 million in initial payments, a number that Wright said he expects to “climb very, very rapidly.”
Legislation extending the NFIP through Dec. 8 was recently signed into law by President Donald Trump. The extension of the program, which was set to expire on Sept. 30, was included in a government spending package that includes emergency aid following Hurricane Harvey.

Trump Nominates Brian Montgomery to Lead FHA

Last Wednesday President Trump announced the nomination of Brian Montgomery to lead the Federal Housing Administration. Montgomery is currently the vice chairman of the Collingwood Group, LLC, a financial services consulting firm, and previously served as Federal Housing Commissioner during the George W. Bush administration. Montgomery must now be confirmed by the Senate.

Reserve Your Room for Bank Directors Retreat, Independent Bankers Division Convention

Join us as TBA hosts the Bank Directors Retreat and Independent Bankers Division Convention back-to-back at the Westin Nashville Hotel. With many Tennessee bankers already choosing to participate in both programs, we are having the events on consecutive days to make the most of your time out of the office.
The Westin Nashville Hotel is holding a block of rooms on a first-come, first-served basis as a special group rate of $254 single/double occupancy. With TBA's room block filling up fast, contact the hotel at 866-912-1028 and ask for the Tennessee Bankers Association block of rooms for this special group rate. Hotel reservation deadline is Wednesday, September 27.

Click here to register for Bank Directors Retreat

Click here to register for Independent Bankers Division Convention

Early Registration Deadline for Women in Banking Conference September 20

Join us for the second annual Women in Banking Conference, devoted to the development of Tennessee women in bank leadership. Successful representatives from Tennessee's financial institutions and women from other affiliated professional groups will share their expertise, experience, and knowledge to help you become a future leader. You will have an opportunity to network with other professional women and discuss similar challenges and solutions. Make plans now to attend and discover inspiration and empowerment. The program takes place October 20 at Nashville's TBA Training Center.

Click here to register.

Sign Up for Onboarding Commercial Borrowers, Held in Four Locations Across State

This Tennessee-specific program is specifically designed for loan officers and lending support staff. Its purpose is to ensure that those responsible for onboarding new borrowers understand the information and documentation required when making a loan to a new borrower.
Under the Bank Secrecy Act, a loan is an account, and a new borrower is subject to the bank's Customer Identification Program (CIP) and Customer Due Diligence (CDD) program. Loan officers and lending support personnel are required to impose the bank's programs as approved by the bank's board of directors when making a loan to a new borrower. In some instances, the bank's CIP and CDD are applicable to existing customers applying for a new loan or making changes to an existing loan. This evening program takes places Sept. 25-28 in Kingsport, Knoxville, Jackson, and Nashville.

Click here to register.

Contact Ncontracts for Vendor Risk Management Services

TBA's endorses Brentwood, Tenn.-based Ncontracts for their full suite of risk management solutions. In today's increasingly complex and regulated environment, it is critical to have a trusted partner to assist with vendor management, business continuity planning, cybersecurity management, findings, compliance, and risk management. Ncontracts is an industry leader in the field and has a history of support and engagement with the TBA. Reach out to Walt Wasyliw, walt.wasyliw@ncontracts.com, to evaluate how their products can be put to use protecting the most critical business operations in your bank.

Compliance Alliance Question of the Week

Q: If we are not a HMDA reporting bank, do we still need to collect Government Monitoring Information (GMI) on mortgage loans?                                                                    
A: Yes, but only for a home purchase or refinance of a home purchase loan secured by a dwelling, that is or will be used by the borrower as a principal dwelling. Regulation B – 12 CFR 1002.13(a) requirements state that applicant(s) ethnicity, sex, marital status, and age shall be requested as part of the application for those loans.
Learn more about all of the tools available with TBA's compliance solution, Compliance Alliance, by attending a free live webinar demo next week: September 19, 10:00 a.m. CT.

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

  • Bankers gather in Nashville and Knoxville for Compliance with Federal Lending Regulations program.

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

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