Category Community Banks

Community Bank Challenge to Credit Unions

Today, the Independent Community Bankers Association (“ICBA”), a trade group representing the community banking industry, filed a lawsuit challenging new rules permitting credit unions to make additional types of commercial loans. The ICBA asserts that the National Credit Union Administration, which regulates credit unions and recently issued the federal regulation in dispute, violated its rule-making […]

Community Bankers Propose Additional QM Status

Last week, the Independent Community Bankers of America (“ICBA”) penned a letter to Director Cordray of the Consumer Financial Protection Bureau (“CFPB”) asking it to expand small creditor exemptions.  Specifically, the ICBA asked the CFPB to “revise the current ability-to-repay/qualified mortgage (QM) rules and escrow requirements for higher-priced mortgage loans to allow community bank loans […]

New Bill Would Alleviate CFPB Processes for Community Banks

Last week, Dan Coats, United States Senator for Indiana, introduced legislation that would lighten the burden on community banks and credit unions. The Community Financial Protection Act would modify the way in which the Consumer Financial Protection Bureau (“CFPB”) requests information about financial institutions with less than $10 billion in assets. Most significantly, the bill […]

Take Note – OCC Updates Mortgage Banking Handbook

On February 7, 2014, the Office of the Comptroller of the Currency (“OCC”) updated the Comptroller’s Handbook, which replaces the 1996, 1998, and 2008 versions that provided guidance for banks and thrifts.  This new document explains the specific policies and procedures that will be reviewed as part of examinations, as well as information technology requirements.  […]

CFPB Confirms January 2014 for New Mortgage Rules; Capito Requests Extension

During his speech to the American Bankers Association Annual Convention earlier this week, Consumer Financial Protection Bureau (“CFPB”) Director Richard Cordray confirmed the January 2014 effective date for the new mortgage rules promulgated by the CFPB. Director Cordray justified this effective date by saying that most of Title XIV of the Dodd-Frank Act would have […]

Dodd-Frank Community Banking Study Highlights Compliance Challenges

A recent study by the American Enterprise Institute (“AEI”) highlights the burdens imposed by the Dodd-Frank Act, which created the CFPB and rewrote the book on regulatory compliance concerns for banks and financial institutions. The full report, The Impact of Dodd-Frank on Community Banks, provides extensive references to support its analysis of the burdens that […]

Third-Party Vendors: Do You Have Appropriate Oversight in Place?

Although many community banks and other financial institutions strategically outsource certain functions (mortgage servicing, credit card products, etc.) in order to offer additional services or control costs, regulators have increased their scrutiny of how institutions are managing these vendors and their practices. It is important for every institution to conduct a periodic review of its […]

Bill Introduced to Require Study of Basel III Impact on Community Banks

Senator Joe Manchin (D-W.Va.) and Sen. Dean Heller (R-Nev.) have introduced legislation supported by the American Bankers Association that requires a comprehensive study of new capital proposals’ impact on community banks and other institutions before any final rules can be issued.  The Basel Committee on Banking Supervision’s third banking supervision accords (Basel III) have come […]