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Have You Contributed to NYSIBPAC This Year?
If not...now is the time! We need your help in this statewide election year to support candidates and committees who understand community banks' needs. Can we count on you?
CLICK HERE for our 2016 PAC contribution form. Help support IBANYS' political action efforts in New York State.
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For more information, visit:
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GOVERNMENT RELATIONS
ALBANY
With the 2016 New York State legislative session in its final days, a number of issues impacting community banks remain unresolved.
IBANYS continues to monitor and engage on these matters, including legislation related to foreclosure issues, credit union powers and aut
horities (including their push to be allowed to accept certain public deposits and participate in the state business development district program) and cash checkers' ability to make loans.
Foreclosures:
The Governor has now made the foreclosure debate. He outlined a proposal that would not mandate that banks undertake maintenance and repair of vacant and abandoned properties but would provide for an expedited
foreclosure process
contingent
upon a determination that the property is vacant and abandoned. That would require an applicant bank, after such a ruling, to secure and maintain the property until sale. Banks which voluntarily use the expedited foreclosure
process option would not be able to avail themselves of deficiency judgments. The Governor's proposal would also impact mandatory settlement conferences, create a statewide vacant and abandoned property registry and several other matters. The Assembly has already passed its bill, similar to the bill  proposed by Sen. Klein and the Senate IDC. It would require banks to maintain these
properties during the foreclosure
process.
Senate Republicans to date have no formal proposal. IBANYS has proposed a carve-out an exemption for New York headquartered banks whose loan portfolios include an extremely small percentage in foreclosure. It is not at all clear at this point in time where this process is headed. Additional negotiating meetings will take place among the parties.
IBANYS is closely monitoring all options being discussed, and held another conference call with members of our Government Relations Committee late Tuesday afternoon.
The Governor also announced more than $100 million in funds will be available to help homebuyers purchase and renovate "zombie" properties
, and assist existing low- and middle-income homeowners with major repairs and renovations. It includes $22 million in settlement funds from J.P. Morgan Chase. Funding is through  the New York State
Homes and Community Renewal (HCR) to establish the new Neighborhood Revitalization Program (administered by HCR's State of New York Mortgage Agency)the and provide grants for not-for-profit organizations and municipalities throughout the state to rehabilitate, repair and improve homes.
Senate Majority Coalition Leaders Flanagan (R-LI) and Klein (IDC-Bronx)
welcomed the announcement as "a step in the right direction, but more needs to be done legislatively to correct a problem with zombie properties that impacts both upstate and downstate," and they
are committed to further action before the session ends next week. To read the Governor's announcement and details of the program, click on the link below.
- Credit Unions: Two bills that IBANYS strongly opposes would provide expanded powers and authorities for credit unions. S.3616, Funke/ A.774, Rodriguez would allow credit unions to receive certain public deposits. This is the same legislation IBANYS helped defeat last year, and we hope to do so again now. Here is a link to our Memo of Opposition. Also, A.3521B, Robinson/ S.5521A, Montgomery would permit credit unions to receive taxpayer dollars by allowing them to participate in the State Banking Development Districts program. Here is a link to our Memo of Opposition. These bills would each make an already uneven competitive playing field even more so in favor of tax-exempt federal and state credit unions, which pay no federal, state or local income taxes, no sales taxes and no MTA surcharge. We urge New York community bankers to contact your local State Senators to express your opposition to these bills. To find contact information for your senators, click on the link below.
https://www.nysenate.gov/find-my-senator
- Check Cashers Ability to make loans: Proposed legislation would allow check cashing stores to issue loans. The so-called "Community Financial Services Access and Modernization Act" would allow over 500 licensed check cashing centers to obtain state licenses to issue business and commercial loans. Assemblyman Rodriguez, the sponsor in the Assembly, claimed it would fill a credit void in many minority and low-income areas underserved by traditional lending institutions. Opponents caution it could lead to predatory lending, and potentially open the door to "payday loans" which are currently illegal in the state.
Other legislative activity
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S.7183, Savino/A.9746, Richardson
relates to defining consummation of a mortgage loan. The legislation, developed with significant input from IBANYS, has now passed both the Senate and Assembly. It
would a
mend Section 2 of the New York State Banking Law as it related to defining consummation of a mortgage loan. It clarifies that consummation occurs when the mortgage applicant executes the promissory note and mortgage. The legislation has passed both the the Senate and Assembly.
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Update on two
IBANYS-drafted and supported bills
sponsored by Senate Banks Chair Savino (IDC-Brooklyn/S.I.) S.5624 would establish community bank service corporations, and has moved to third reading in the Senate. There is no Assembly companion bill as yet.
S.5297, would
e
xempt community banks with assets under $1 billion from State DFS CRA exams
if they have satisfactory or better ratings from their primary federal regulator has been referred to the Banks Committee. There is no Assembly companion bill.
WASHINGTON, D.C.
Hensarling's Financial CHOICE Act Would Revamp/Replace Dodd-Frank
In a speech before The Economic Club of New York, House Financial Services Committee Chairman Jeb Hensarling (R-Texas) proposed
revamping the Dodd-Frank Act and replacing it with a capital-based  alternative. Chairman Hensarling's proposals are just that -- no legislation has been introduced, and there is no companion bill in the Senate, and President Obama opposes changes to Dodd-Frank. His proposal does incorporate several bills inspired by ICBA's "Plan for Prosperity" endorsed by IBANYS. They include, among other things, reforming the CFPB, easing mortgage rules on portfolio loans, requiring tailored banking regulations, creating a workable exam appeals process. Hensarling stated:
"Our Republican plan rests on the belief that bank capital is the most basic element in making a financial system healthy, resilient  and reliable for economic growth."
Hensarling's proposed Financial CHOICE Act also includes sweeping provisions to subject all federal regulators to the appropriations process, repeal the Volcker Rule and remove deference courts have traditionally given to the agencies.
ICBA has worked closely with Hensarling as he developed the plan, and called it a welcome opportunity for advancing community bank relief. ICBA President & CEO Cam Fine noted:
"ICBA strongly supports much-needed regulatory relief for the nation's community banks and the customers and communities they serve. Chairman Hensarling's comprehensive blueprint for reform is a bold and welcome opportunity for advancing common-sense regulatory relief that will help promote economic growth on Main Street and throughout the American economy. ICBA has repeatedly called on Congress to rein in community bank overregulation by advancing the vital provisions in our Plan for Prosperity platform and other regulatory relief measures. Chairman Hensarling's common-sense reforms will free up resources that can be used to make loans, promote economic growth and create jobs in local communities nationwide."
Highlights of the CHOICE Act:
- Exempting banks from a number of Dodd-Frank regulations and Basel III capital and liquidity rules if they meet certain requirements, including a simple leverage ratio of at least 10% and a Camels rating of 1 or 2. Chairman Hensarling said the plan would most likely help community banks in the near-term who would have to raise "little to no additional capital" while larger banks would have to "raise significant additional equity capital." He favors a non-risk weighted leverage ratio which differs from current capital requirements because "risk-weighting is simply not as effective."
- Replacing the single directors of the Consumer Financial Protection Bureau, Office of the Comptroller of the Currency and Federal Housing Finance Agency with commissions for each agency.
- Subjecting all federal regulators, including the FDIC, Fed, to the Congressional appropriations process and require every regulation to pass a "rigorous cost-benefit test."
- Renaming the CFPB as the Consumer Financial Opportunity Commission, with a Senate-confirmed Inspector General for the agency.
- On "too big to fail", repealing the Financial Stability Oversight Council's power to designate firms as systemically important, subject them to heightened supervision and eliminate the Office of Financial Research.
- Creating a new bankruptcy chapter designed to resolve an insolvent megabank and replace Dodd-Frank's Title II.
- Giving the SEC more power to crack down on financial crime and fraud.
New York community banks:
Send your bank's specific examples of how increased regulatory burden/ compliance has negatively impacted your bank's bottom line, operations and business model.
Have you seen a decline in ability to lend? Have  you seen an increase in your compliance person-hours, at the expense of your ability to lend, or reinvest in your local communities? A number of the congressional offices we met with have requested such data. Send us your specific examples, so we can send them to our elected officials and help document why there should be tiered regulation--and why community banks should not be required to meet the same regulatory oversight and standards as larger institutions. Email your examples to John Witkowski at [email protected].
IBANYS MEETINGS & CONFERENCES
Mark Your June Calendars -- And Plan To Attend These Two IBANYS Meetings
IBANYS is preparing for two important meetings this month
: Our
2nd Annual Lending Conference
,
co-sponsored with T.Gschwender & Associates will be held
June 28-29
at the beautiful Woodcliff Hotel & Spa in Airport (Rochester). The program is designed for Loan Officers, Mortgage Officers, Consumer Lending Officers, Commercial Lending Officers, Credit Officers, Credit Officers, and CFOs and other senior management members who are involved in the credit and lending process. Participants can earn up to 12 CPE credit hours. In today's banking climate of rate  environment, market conditions, steep competition and increased regulatory oversight, the lending and credit process offers community banks both opportunities and challenges -- in mortgage lending, consumer lending, commercial lending and small business lending.
We have an outstanding slate of speakers to share their knowledge and expertise throughout this day and ½ conference.
They will review all aspects of the lending process, with presentations and discussions on loan review, risk, sales, portfolio management and the impact of CECL.
A block of rooms have been reserved at the Woodcliff Hotel & Spa.
The room block cut-off is this Friday, June 10, after which we cannot guarantee room availability or pricing.
To make a reservation, contact the Woodcliff Hotel & Spa at 1-800-365-3065.
Tell them you are with the Independent Bankers Lending Conference. Room rate is $159++ single/double.
. . .Click on the links below for information on the
updated program agenda, registration and available sponsorship opportunities.
Also, the Independent Bankers Association of New York State and New York Bankers Association are co-sponsoring a 2016 Human Resources Management Conference
June 23 - 24 at the Holiday Inn in Saratoga Springs, New York. Presentations and discussions will focus on topics such as
employee  benefits; r
ecruiting strategies/talent acquisition; d
eveloping and retaining high potentials; p
erformance reviews/performance management. Plus, employment law, regulatory updates for affirmative action employers, new FLSA exemption rules, creating a high-performance culture, building a collaborative workplace, implementing a culture survey, compensation issues, health care strategies and financial benchmarks, and demonstrating HR performance to senior management.
Click on the link below for details on program and registration.
Then, Mark Your October Calendars
And
Plan To Join Us At
IBANYS' 42ND ANNUAL CONVENTION
. . .October 3-5 At
The
Turning Stone Resort
IBANYS' 42nd Annual Convention will take place at The Turning Stone Resort October 3-5. We'll have a  full menu of top notch speakers and presenters, including Steve Greenberg, a veteran political analyst and commentator who will preview the critically important 2016 election for community banks. With every member of the New York State Legislature and New York Congressional Delegation up for election, and control of the State Senate expected to be hotly contested, it will be a timely presentation. Steve Greenberg will be our closing keynote speaker Wednesday morning, October 5.
Ray O'Conor will be our opening night Keynote speaker
Monday evening, October 3
. Ray is a former President of Saratoga National Bank & Trust and former IBANYS Chairman. He is the author  of
She Called Him Raymond: A True Story of Love, Loss, Faith and Healing --
a candidate for the 2016 Pulitzer Prize for non-fiction.
Ray has also been a newspaper columnist,
Special Agent with the U.S. Department of Defense and U.S. Border Patrol Agent. His presentation will share the story behind his book, and provide a look into the true tale of two ordinary people who led extraordinary lives during the most tumultuous of times.
Of course, we'll also have:
- A full menu of speakers, panel discussions and presentations on the most important issues and trends impacting New York community banks
- And, our traditional business show, silent PAC auction and much more! Watch for program details and sponsorship opportunities.
IBANYS Offer Key Benefits
To Member Banks. . .
Is
YOUR Bank Taking Advantage?
During the past year or so, IBANYS has introduced several new initiatives that can provide real value and benefits to community banks. Take a look at these programs, and if you have questions, contact us or visit our website at
www.ibanys.net. We hope you'll decide to take full advantage of these exciting opportunities.
- The "My Wellness Resource Card" offers a low-cost, non-traditional program to help community banks to save time and money. It helps provide on demand health care from U.S. board-certified doctors who provide
 diagnosis, treatment options and necessary prescriptions via unlimited telephone medical consultations. The My Wellness program offers discounts and significant savings on a variety of medical and dental products, and is designed to improve productivity, decrease absenteeism and boost morale without straining your bottom line. It's an exciting new way for community banks to provide health care benefits, reduce cost and retain employees. For more information, contact Alan Justin, Managing Partner at (716) 907-5500.
- We also joined the "Cure the Blue" effort to raise funds and awareness regarding prostate
 cancer in New York State. We are partnering with the Buffalo Bills Alumni Foundation, and hope to see a number of IBANYS members participate. Please join us in supporting this worthwhile cause. Visit www.curetheblue.com to get involved!
INDUSTRY INSIGHTS
Mortgage Applications Are Up
Mortgage application volume jumped 9.3% last week from the previous week, according to the Mortgage Bankers Association. The results were seasonally adjusted, including for the Memorial Day holiday.
Applications to refinance a home loan increased 7%,
 seasonally adjusted, from the previous week, and are nearly 14% higher than one year ago. Interest rates were higher at this time last year. Mortgage
applications to purchase a home did jump 12% for the week, but are down 19% in the past four weeks and down 6% from the same week one year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.83% from 3.85%, with points decreasing to 0.33 from 0.36 (including the origination fee) for 80% loan-to-value ratio loans, according to the MBA.
DFS Cracking Down On 28 Online Lenders?
The New York Department of Financial Services
sent a letter to 28 companies this week requesting information about their online lending activities, according to press reports. DFS reportedly
sent the letter to Prosper, the second-largest online lender; Avant; Funding Circle; Upstart, and others.
 The business has raised questions for banking regulators, since many online lenders do not use a traditional banking model that uses deposits to make loans, and bypass their regulations. Instead, online lenders either connect borrowers directly with retail investors who want to fund loans, or extend credit to borrowers, and then quickly bundle the loans into securities that are sold to investors. DFS reportedly
demanded "immediate compliance" with New York licensing requirements for debt collection, money transmission and mortgage lending activities.
Online lenders that do not believe they require New York licenses must respond with descriptions of products and services they provide to New Yorkers, as well as cash flow charts. DFS
also requested details about types of loans and fees the companies pay to, or receive from, other financial institutions.
Sandler O'Neill & Partners Webinar: "Adapting to a Flatter Rate Environment"
Thursday,
June 9, 2016
at 3:30 PM
It has been six months since their last webinar, and despite the December rate hike, a flatter yield curve has financial institutions continuing to face margin compression. Since Sandler O'Neill & Partners has the opportunity to attend many board and ALCO meetings throughout the country, they want to share common trends from these meetings.
Join them to discuss current balance sheet themes and practical strategies to address the difficult rate environment for the rest of 2016.
To register or for additional details, contact Sandler O'Neill's Principal/Chief Balance Sheet StrategistScott Hillenbrand: e-mail
Computer Services, Inc. Webinar:
"Quarterly Compliance Update: June 2016"
Thursday, June 23, 2016 from 2:00 PM to 3:00 PM
Banks of all sizes are now expected to comply with the 2011 supervisory guidance on model risk management. Join CSI for this free webinar and get answers to the questions community and mid-size bankers are asking about meeting these regulatory expectations.
In addition to sharing important regulatory updates from this quarter, CSI's Chief Risk Officer Keith Monson will provide an executive summary of model risk management requirements and how they may affect your financial institution.
Don't miss this critical update on model risk management and standards for validation under the guidance.
Tune in on
June 23
to learn about:
- Regulatory updates from this quarter
- What constitutes a model
- Model validation requirements
- The difference between validation and back-testing
- Next steps for financial institutions
To register, click the link below:
All IBANYS Webinars Are Specifically Designed For Community Banks!
Are your officers, directors and employees getting all the information they need on the latest trends, issues and developments impacting the bank? New York's community banks cope with a wide array of challenges. Your bank's officers, board members and employees know their responsibilities and potential liabilities are not about to diminish. Are you doing everything you can to ensure that they have access to the very latest information and tools they need to meet their responsibilities, and to properly prepare the bank for the future? One way to do so is by signing them up for
IBANYS' webinars. Our programs are specifically designed to meet the needs of community banks, and are both effective -- and, cost-effective. Your bank's officers, directors and employees can participate directly from their offices.
There's a good reason
why a rapidly growing number of your industry and association peers are taking advantage of these webinars.
Review our upcoming programs by clicking the link below:
https://ibanys.fed.financialedinc.com/store/webinar
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. . .Sandler O'Neill + Partners, L.P.
Sandler O'Neill + Partners, L.P. is a full-service investment banking firm and broker-dealer focused on the financial services sector. clients include a wide variety of financial firms nationwide, and increasingly, around the globe. The firm
provides the full suite of investment banking services, including merger and acquisition advisory, capital markets, fixed income and equity trading and sales, equity research, balance sheet management, mortgage finance, and consulting services to financial institutions and their investors.
Sandler O'Neill is a partnership and different by design. Since the firm's founding in 1988, its partners have sought to provide banks, thrifts and other financial services companies with an alternative to large Wall Street banking firms. Their focus has always been to enhance the franchise value of our clients. They provide clients a wealth of experience and knowledge more critical to them today than ever. The firm was founded
by senior executives from major Wall Street firms committed to building a new kind of firm focused on a deeper level of service to community banks. A common thread binding the firm's founders and today's employees and principals is a deep understanding of balance sheets and portfolio construction. Over time, the firm has developed ne
w services, and broadened existing ones, to become a full-service investment banking firm.
Sandler O'Neill consists of about 300 financial professionals. In addition to headquarters in New York City, they have offices in Boston, Chicago, San Francisco and Atlanta, have a mortgage finance operation and a registered investment advisor, Sandler O'Neill Advisors, L.P.
Now in its third decade, the firm has remained true to its disciplined focus on financial companies, and their expertise continues to grow. Their commitment to the highest level of customer service has made them a market leader in each of their core businesses. Their structure and unique culture allow them to draw resources from multiple parts of the firm to craft creative solutions to meet increasingly complex client needs.
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. . .that t
here are approximately 6,000 community banks in the United States, including commercial banks, thrifts, stock and mutual savings institutions? They operate more than 51,000 locations throughout the nation, and constitute 96% of all banks.
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| New York community banks play a key role in our state and local economies. Help spread the good news among your customers, business and elected leaders and media! |
| Click here for quotes from Governor Cuomo and DFS Superintendent Lawsky extolling the performance and value of New York community banks. |
| Click here for the full NYS Study on community banking. |
| Click here to read IBANYS President & CEO John Witkowski's comments on the new tax changes and benefits for New York community banks as approved in the 2014-15 State Budget. Click here for IBANYS' letter to the Editor of Consumer Reports Magazine correcting failure to mention community banks as an alternative to using "big banks." _________________________________ |
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John J. Witkowski
President and Chief Executive Officer
Stephen W. Rice
Director of Government Relations and Communications
Linda Gregware
Director of Administration and Membership Services
William Y. Crowell, III
Legislative Counsel
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Business Development Corporation (
Importantly, interest rates a fraction of those typically offered by online lenders. 