Tennessee Bankers

This Week Newsletter

March 19, 2018 - Issue No. 1811

Senate Passes Bipartisan Regulatory Reform Legislation

With a bipartisan vote, the Senate last Wednesday night passed S. 2155, the regulatory reform bill championed by Senate Banking Committee Chairman Mike Crapo (R-Idaho) and four Democratic committee members as well as Bob Corker (R-Tenn.). The bill contains several provisions that have been longstanding priorities of the banking industry since passage of Dodd-Frank, including: 

  • Providing Qualified Mortgage designation for mortgages held in portfolio by banks with less than $10 billion in assets
  • Simplifying capital calculations for community banks
  • Providing relief from appraisal requirements for smaller mortgages
  • Instituting longer exam cycles for community banks
  • Raising the threshold for designation as a systemically important financial institution from $50 billion in assets

Now that the bill has passed, it will go to the House for approval. 

House Passes Tailored Regulation Bill

In another bipartisan vote last Wednesday, the House passed the Tailor Act by a vote of 247-169, which would require regulators to tailor their actions to meet the diverse characteristics of banks rather than regulate solely based on an institution’s size.

This legislation follows a series of stand alone regulatory relief measures that the House has passed as the Senate negotiated a comprehensive regulatory relief package.

House to Vote on TBA Legislation This Week

The House Finance, Ways and Means Committee voted unanimously last Tuesday to advance to the House floor TBA’s legislation that will allow banks to pledge out-of-state bonds as collateral for public deposits. The legislation (SB 2684 by Bailey and HB 1707 by Wirgau) will allow out-of-state bonds to be pledged if they are AA-rated, an equivalent rating or higher rating; are “bank qualified”; and are not a structured debt instrument.

The full House will vote on HB 1707 Thursday morning. The Senate State and Local Government Committee will hear SB 2684 on Wednesday and could receive a vote by the full Senate as early as March 26.

CFPB Seeks Information on Adopted Regulations and New Rulemaking Authorities

The CFPB has issued a request for information seeking feedback on its adopted regulations and new rulemaking authorities. This is the eighth in an ongoing series of RFIs designed to inform the CFPB how the Bureau is fulfilling its statutory obligations and how to improve outcomes for both consumers and covered entities.

The public is invited to submit comments on the CFPB’s final rulemakings since 2011, with the exception of its 2015 HMDA rule and 2017 payday lending rule, which the bureau has already announced plans to revisit. Among other things, commenters are invited to provide feedback on aspects of the bureau’s regulations that could be better tailored, create unintended consequences, overlap or conflict with existing regulations, are incompatible or misaligned with new technologies or could be modified to provide greater consumer protection. Read the RFI.

Record Attendance for TBA Day on the Hill

With the largest event attendance to date, 70 of Tennessee's young bankers participated in Day on the Hill at the Tennessee State Capitol last Tuesday. Hosted by TBA's government relations team, the attendees heard from members of House and Senate leadership, met with their individual legislators, and viewed committee hearings including the House Finance, Ways & Means Committee as they approved TBA's priority legislation on eligible collateral. A highlight of the day was the luncheon panel of lawmakers at Bone McAllester's law office featuring a discussion on current legislative topics with Reps. Clark Boyd, Jeremy Faison, Craig Fitzhugh, and Tim Wirgau, moderated by Trace Blankenship.

With thanks to our sponsors Bone McAllester Norton PLLC, Bank of America, N.A,, and Federal Home Loan Bank of Cincinnati, view the photo recap of the day here, and follow the Twitter conversation at #TNYoungBankers.

Register for IT/Operations/Information Security Officer Forums

The information technology, information security, cybersecurity, and operations areas of banking carry some of the greatest risk to your organization and are key areas of your information security program. Critical issues are constantly evolving, and it is imperative for those responsible for these areas to stay abreast of current issues, requirements, and changes.

In response to TBA member requests for assistance in this area, we begin our fifth year of IT/Operations/Information Security Officer Forums, led by Susan Orr. The three sessions for this forum are scheduled for April 6, July 13, and November 16. One registration fee covers all three programs. Participation will be limited in number, and registrations will be accepted on a first-come, first-served basis.

Click here to register.

TBA On the Road

  • BSA compliance and operations personnel gather in Nashville for the BSA/AML Compliance School.
  • Stacey Langford visits members in East Tennessee.

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