ICBA News, sponsored by Bank Intelligence Solutions—ICBA Supports Concessions in Mortgage Loan Originator Rule

Advocacy
ICBA Supports Concessions in Mortgage Loan Originator Rule
ICBA said it supports provisions of a new Consumer Financial Protection Bureau rule that will allow community banks to hire and retain qualified mortgage loan originators while providing consumer safeguards against steering and other inappropriate behaviors. The CFPB rule, which bans certain incentives that some loan originators had used to sell unsafe mortgage loans, clarifies that acceptable mortgage loan originator compensation structures include qualified and non-qualified bonus and profit-sharing plans.

The CFPB rule includes participation in both qualified and non-qualified bonus and profit-sharing plans in acceptable mortgage loan originator compensation structures. As a result, mortgage loan originators will be able to participate in both kinds of plans, subject to certain restrictions.

The final rule also waived a provision of section 1403 of the Dodd-Frank Act, which would have prohibited consumers from paying upfront discount points and fees to lower their interest rate. Additionally, all mortgage loan originators will have to meet certain character and fitness requirements, pass criminal background checks and receive training that is appropriate with their origination activities. Community bank mortgage loan originators must be registered with the Nationwide Mortgage Licensing System and Registry and have an NMLS number, though they do not have to be licensed. Read ICBA Release.

Congress
In-Depth Piece Outlines New Committee Makeup
With the 113th Congress underway, a new Web exclusive on the ICBA Independent Banker website identifies the key “players” who will steer financial services policy for the next two years. ICBA Vice President of Congressional Relations and Advocacy Aaron Stetter outlines who will lead the House Financial Services Committee and the new members of Congress joining the panel this year.

“While ICBA enjoyed strong working relationships with both the outgoing House Financial Services Committee Chairman Spencer Bachus (R-Ala.) and Ranking Member Barney Frank (D-Mass), we look forward to working with incoming Chairman Jeb Hensarling (R-Texas) and Ranking Member Maxine Waters (D-Calif.),” Stetter writes. “Both members have a long history of service on the committee and a strong working knowledge of community banking and ICBA.” Read the In-Depth Piece. Read Committee Assignments.

Congress
House Passes Debt-Ceiling Suspension
The House of Representatives voted to suspend the nation’s debt ceiling until May. The measure, which passed on a 285-144 vote, allows the government to borrow as needed to meet its spending obligations through May 18. The Senate is expected to vote on the measure next week, and the White House said it will not oppose the bill.

The vote comes as investors grow weary of policymakers’ inability to reach agreement on government spending and revenues. A Bloomberg poll released this week found that investors said the state of the U.S. government’s finances is the biggest risk to the global economy. While 36 percent of respondents cited the nation’s fiscal problems, 29 percent cited Europe’s sovereign debt crisis and 15 percent said the slowing Chinese economy was their chief concern.

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Congress
House Ag Committee Appoints Subcommittees
Members of the House Agriculture Committee met to formally organize and finalize subcommittees for the 113th Congress. Also this week, Chairman Frank Lucas (R-Okla.) complimented Agriculture Secretary Tom Vilsack for announcing the sign-up for farm programs and direct payments beginning Feb. 19.

“It is vitally important that our farmers, and lenders alike, know that Congress and the administration intend to keep the commitment made with the one-year extension of the 2008 farm bill,” Lucas said. “Short of a five-year bill, this extension provides certainty for the 2013 crop year.”

TARP
Treasury Says 93 Percent of TARP Funds Recovered
Treasury said it has recovered 93 percent ($387 billion) of the funds disbursed via the TARP program ($418 billion). In an update on the Treasury Notes blog , the department said it collected nearly $70 billion in additional repayments and other income in 2012. Treasury also included a program-by-program breakdown of how it plans to exit the program.

Economy
Home Prices Rise in November
U.S. home prices rose a seasonally adjusted 0.6 percent in November, according to the Federal Housing Finance Agency. The previously reported 0.5 percent increase in October was revised upward to a 0.6 percent increase.

For the 12 months ending in November, prices rose 5.6 percent. The index is 15.2 percent below its April 2007 peak and is roughly at the same level as the August 2004 index.

Regulation
Curry Discussing Bank Director Accountability in London
Comptroller of the Currency Thomas Curry said he will appear today before a public session of the Parliamentary Commission on Banking Standards to discuss the OCC's approach to ensuring accountability of independent directors at federal banks and thrifts. The session, which will be held in London, is part of the commission's ongoing inquiry into the U.K. banking system.

ICBA News
Rob Marlatt, Bill Gallagher Join ICBA
ICBA announced that Rob Marlatt and Bill Gallagher have joined the association. Marlatt is taking on the role as vice president of the Great Lakes regional office and will serve as the primary contact for community banks in Arkansas, Indiana, Kentucky, Michigan and Wisconsin. Gallagher will be vice president of the West Coast office, which serves community banks in Alaska, California, Hawaii, Idaho, Nevada and Oregon. Read ICBA Release.

Convention
Early Bird Savings Expire This Monday
The early bird deadline to save $300 on the 2013 ICBA National Convention and Techworld at the Wynn Las Vegas and Encore is coming up fast. Community bankers have until Monday, Jan. 28, to register at the early bird-rate. Scheduled for March 11-15 in Las Vegas, this year’s convention already has a packed lineup of speakers, workshops and networking opportunities. Register Online.

Education
ICBA Auditing Institutes Slated for KC
ICBA is hosting a two-week Auditing Institute to provide community bankers with tools and step-by-step procedures to establish and maintain an effective internal auditing framework. The comprehensive classroom seminars, which are broken into two weeks of classes, are scheduled for April 29-May 3 and May 6-10 in Kansas City. Register for Week One. Register for Week Two.

Products and Services
USPS Price Changes Affect Mail Shipments
The U.S. Postal Service has announced price changes effective this Monday that will affect postage and other fees associated with mail shipments. Pitney Bowes, an ICBA Preferred Service Provider, presented the impact of the price change to letters and flats in a recent recording. The webinar covered how to minimize the impact of these changes and review strategies to save money and increase efficiency. Watch the Recording.