ICBA News, sponsored by QwickRate—ICBA Urges QM Rule Changes

Advocacy
ICBA Urges Changes to CFPB Qualified Mortgage Rule
ICBA said that final mortgage rules issued by the Consumer Financial Protection Bureau will leave many consumers without access to mortgage credit. In a comment letter, ICBA wrote that the bureau’s new ability-to-repay and qualified mortgage regulations could end the mortgage business for many community banks across the country.

ICBA wrote that it appreciates that the CFPB’s final rule provides some flexibility for community banks to continue to offer mortgage loans, including balloon-payment mortgage loans, and includes a new category of community bank qualified mortgages. However, the association is concerned that the exemptions for community bank loans do not cover nearly enough community banks, which could drive them out of the market.

ICBA offered the following recommendations to the CFPB:

Expand the definition of qualified mortgage to include additional loans held in portfolio by small creditors, including balloon payment mortgages originated by small creditors in non-rural markets,
Increase the limit for the number of mortgage loans originated and retained in portfolio to qualify as a community bank lender to 1,000 per year,
Extend the safe harbor conclusive presumption of compliance for community bank mortgage loans held in portfolio with APRs up to the higher of APOR plus 3.5 percent or the community bank’s cost of funds plus 4 percent, subject to the HOEPA threshold,
Expand the definition of “rural” for balloon mortgage loans and escrow requirements to include all counties outside metropolitan statistical areas and all towns with fewer than 50,000 residents,
Grant QM safe harbor protection for refinancing balloon mortgage loans after the Jan. 10, 2014, effective date so borrowers with balloon mortgages coming due are not left without refinancing opportunities, and
Do not include mortgage loan originator compensation in the total points and fees calculation for loans that receive the QM designation. Read ICBA Comment Letter.

Regulation
ICBA Webpage Details New Mortgage Rules
In related news, ICBA launched an educational webpage to provide details of the Consumer Financial Protection Bureau’s new rules on mortgage lending. The webpage includes summaries of the final rules and links to the rules themselves. It also links to a proposal to amend the final qualified mortgage rule to add an additional special QM category for community bank portfolio loans.

ICBA developed the resource page to help community bankers understand the rules released in January 2013 and prepare for implementation. Please email questions about the rules to info@icba.org. Visit the ICBA Webpage.

Blog
Fine: Stage Is Set for Congressional Battles
With committee assignments and leadership structures in place, ICBA is poised to advance its legislative agenda for the 113th Congress, ICBA President and CEO Cam Fine wrote in his latest blog post. Relieving the nation’s community banks from undue regulatory burdens and advancing campaigns against favorable treatment for government-supported competitors will continue to be top priorities, he wrote in Finer Points. Read the Blog Post.

ICBA NewsWatch Today is sponsored by QwickRate:
Stop by booth #256 to enter a free iPad mini-drawing and to check out our new Bank Performance Report Card at ICBA’s convention. Also, be sure to attend our workshop, “Basel III: What Does it Really Mean to Community Banks,” at 11:15 a.m. Tuesday in room Mouton 1. Contact us for more information at www.qwickrate.com.

In Depth
Vigilant Advocacy the New Normal
As the nation continues to right itself from one of the worst financial crises in decades, increasingly vigilant advocacy among the nation’s community banks has become a core business practice, according to a new exclusive on the ICBA Independent Banker website. “It is incumbent on community bankers to recognize and develop ways to incorporate advocacy into their daily bank operations at all levels, and ICBA is here to assist you,” ICBA Director of Congressional Advocacy Brian Anderson writes. Read the Article.

Personal Finance
ICBA Encourages Americans to Save During “America Saves” Week
ICBA announced it is proud to add community bankers’ voices to the nearly 2,000 organizations nationwide that are encouraging Americans to save as part of America Saves Week. In a national news release that community bankers can customize for their communities, ICBA encouraged Americans to build their savings by setting goals, creating a spending plan, and making automatic savings deposits.

ICBA Senior Executive Vice President and Chief of Staff Terry Jorde reiterated the tips in a post on ICBA’s Go Local blog. Read ICBA Release. Access Customizable Release.

Regulation
OCC Marks Sesquicentennial Year
The Office of the Comptroller of the Currency turned 150 years old Monday. President Abraham Lincoln founded the agency when he signed the National Currency Act on Feb. 25, 1863, making the OCC the oldest regulatory agency of the U.S. government, the agency said. Today, more than 3,800 OCC employees work from 93 locations across the country to serve more than 1,800 national banks and federal savings associations.

Today
FDIC Q4 Data, Lew Nomination Spotlighted Today
Today is a big day in Washington, with fourth-quarter FDIC banking data due out and with the Senate Finance Committee slated to vote on the nomination of Jack Lew for Treasury secretary. Federal Reserve Chairman Ben Bernanke testifies before the Senate Banking Committee on monetary policy, and the House Financial Services Committee will discuss budget issues affecting the financial services sector. Additionally, several key indicators, including the Case-Shiller home-price indexes, new-home sales and consumer confidence, are due out this morning.

Poll
This Week’s Quick Poll
Take this week’s Quick Poll on in-school branches, and view results from the previous poll on microlending programs. View the Archive.

Regulation
Fed UDAP Webinar Next Week
The Federal Reserve is hosting an upcoming webinar on unfair and deceptive acts or practices (UDAP) standards. Scheduled for 2 p.m. (Eastern time) Tuesday, March 5, the webinar will cover Consumer Financial Protection Bureau and Federal Reserve Bank UDAP legal authorities, legal analysis and examination procedures, UDAP and bank holding company risk, case studies and emerging areas of risk, and recommendations for implementing an effective UDAP compliance program. Register Online.

Education
ICBA Webinar on Accelerating Growth, Avoiding “Reg Strangulation”
How do community banking leaders develop responsible innovation in today’s risk-averse, highly regulated environment? An upcoming ICBA webinar will share a new leadership paradigm for community banking executives to mitigate regulation’s paralyzing impact by creating cultures where fear of risk is replaced by smart inspiration. “Accelerate Growth and Avoid ‘Reg Strangulation,’” scheduled for 11 a.m. (Eastern time) Tuesday, March 5, will cover how to avoid defensive reactions to regulatory demands, convert intangible assets into measurable value and harness leadership talent to fuel innovation and trust. Register Online.

Education
Call Report Prep Seminar Slated for April
ICBA’s “Call Report Preparation” seminar is scheduled for April 15-16 in Minneapolis. If you prepare your bank’s 041 call report form, this is the seminar that explains what you need to know, why you need to know it and how to do it right. This course will include discussions on recent revisions and a thorough review of new accounting standards and government programs that affect call report preparation. Register Online.