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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
State Legislative Session Over: An Update. . .
The 2016 NYS legislative session concluded in the early hours of Saturday morning, with IBANYS on hand to the end.
Foreclosure Agreement Approved --
With Community Bank Exemptions
In the closing moments of session, the Legislature approved a three-way agreement addressing foreclosure, abandoned/vacant property and maintenance issues as part of a "budget cleanup" bill.
IBANYS worked hard to protect the interests of community banks in the process, and succeeded in inserting "carve out" exemptions that exempt the vast majority of community banks. (See details below.)
The three-way agreement is the end result of the original legislation advanced by NYS Attorney General Schneiderman and sponsored by Sen. Klein and Assemblyman Rodriguez, which would have mandated banks to maintain vacant and/or abandoned properties throughout the foreclosure process. (Several other bills were also introduced on these issues.)
After weeks of negotiations, Governor entered the discussions.
The final agreement, approved in the session's closing moments early Saturday morning:
- Requires federally chartered banks, savings banks, savings and loan associations, or credit unions that originate, own, service, or maintain loans to secure and maintain 1 to 4 residential real properties deemed to be vacant and abandoned;
- Mandates good faith negotiations during mandatory settlement conferences during foreclosure proceedings;
- Expedites the foreclosure process for vacant and abandoned properties;
- Imposes additional notice requirements.
- It also creates a statewide electronic registry of such properties, and in addition, there is also a new program creating a Sonyma subsidiary to administer $100 million in funds to help homebuyers purchase and renovate "zombie" properties and assist existing low- and middle-income homeowners with major repairs and renovations.
IBANYS successfully advocated for exemptions for community banks, and the final agreement provides a "carve out" that will apparently benefit and exempt the vast majority of IBANYS members and New York community banks.
- Banks with less than 3/10ths (three-tenths) of one percent (1%) of all the one-to-four-family mortgage loans made in New York State will be exempt from all provisions.
- Banks whose number of one-to-four family mortgage loans is between 3/10ths (three-tenths) and 5/10ths (five-tenths) of one percent (1%) will only be responsible for maintenance prospectively, not retroactively.
- Note: The list of banks and their total loans provided by the State Department of Financial Services for the purpose of these calculations was created in 2014, so it remains possible that an updated list could change the numbers slightly, though it does not appear likely the change would be dramatic.
With the Governor, Attorney General and legislative leaders determined to address these issues, and with intense editorial and press coverage of the issue, IBANYS worked hard to protect the interests of New York's community banks, and carve out exemptions for the greatest number of community banks possible from the final legislation. In the aftermath of the session, there has reportedly been speculation that some financial institutions could possibly decide to challenge the new law through litigation.
Click here, here and here to read the language of the legislation, and the announcement of the new program.
STOPPED:
Bills To Allow Credit Unions To Receive
Public Deposits &
Participate In NYS Banking Development District Program
IBANYS successfully opposed and helped stop legislation that would have expanded powers and authorities for credit unions were stopped. S.3616, Funke/A.774, Rodriguez would have allowed credit unions to receive certain public deposits. This is the second consecutive year we were able to defeat this effort.
Here is a link to our Memo of Opposition
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We also stopped A.3521B, Robinson/ S.5521A, Montgomery, which would have permitted 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 have made 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.
Also Stopped:
Legislation To Allow Check Cashers
To Make Loans.
The so-called "Community Financial Services Access and Modernization Act" would have allowed over 500 licensed check cashing centers to obtain state licenses to issue business and commercial loans. Supporters 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. This legislation, along with predatory auto loan legislation that was stopped, will likely resurface in future sessions. New DFS Superintendent Vullo has signaled she wants to review both issues.
Three IBANYS Proposals Pass Senate;
No Assembly Action
Three IBANYS initiatives recommended by the Government Relations Committee and sponsored by Senate Banks Chair Diane Savino (IDC, Brooklyn) were passed by the Senate, but not by the Assembly. They would:
- Exempt community banks with assets under $1 billion from State DFS CRA exams if they have received a satisfactory or better rating in their most recent federal CRA exam.
- Extend the community bank examination cycle from the current 12 to 18 months,
IBANYS' Definition Of "Consummation of Mortgage Loan" Approved
S.7183, Savino/A.9746, Richardson defines consummation of a mortgage loan, clarifying state law regarding the TILA-RESPA Integrated Disclosure Rule (TRID) which took effect last October. The legislation, developed with significant input from IBANYS, passed both the Senate and Assembly. It amends 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 awaits the Governor's signature.
Senate Confirms Vullo As DFS Superintendent
The State Senate confirmed Maria Vullo as Superintendent of the State Department of  Financial Services. At her Senate Banks Committee confirmation hearing, Vullo described herself as "pro-business and pro-consumer" and does not believe the two terms are mutually exclusive. Vullo said she wants the New York financial industry to grow, but also serve lower-income residents whose financial needs are not being met. "I think you might see creative, innovate initiatives to try to address those concerns.
WASHINGTON, D.C.
Fed Chair Yellen Testifies On Economy;
Says Community Banks To Get Reg Relief
Federal Reserve Chair Janet Yellen testified this week before the Senate Banking and House Financial Services Committees. She said
she believes recent weakness in job creation is "transitory" and does not reflect an otherwise
 growing economy, and
sounded more optimistic than she has recently as the Fed backtracked on its previously more aggressive stance on interest rates.
"We are seeing a pickup in growth. There's been a sharp increase in consumer spending.
I'm very hopeful that we will see a pickup in growth. We will be watching for that as we assess the economy."
Last week, the Federal Open Market Committee slashed its expectations for future rate hikes following the weaker-than-expected May jobs report which showed non-farm payrolls only increased by 38,000. She said the Fed hasn't done a "comprehensive" study of all the new banking regulations, but is following the road map laid out by Congress, and is taking costs and benefits into account.
Chair Yellen said that small banks will be getting help from some changes in the Fed's regulatory regime. She noted community banks are struggling under the new regulatory burdens, and the Fed is trying to ease off. She noted low interest rates make a tough environment for small lending institutions. Further, Chair Yellen believes the lack of new banks being chartered is attributable more to the challenging economic environment, not to regulation.
ICBA Chair To Testify To Senate
Banks Committee
ICBA Chair Rebecca Romero Rainey is scheduled to testify tomorrow before the Senate Banking Committee on issues related to bank capital and
 liquidity regulation. She will discuss community bank concerns with bank capital and liquidity rules, and provisions of ICBA's "Plan for Prosperity" endorsed by IBANYS which would provide community banks with regulatory relief and capital access.
Click here to read the 2016 lobby card, including points on the Plan for Prosperity, which IBANYS members used in visits with members of the New York Congressional Delegation.
Other Federal News
The White House threatened to veto a House spending bill for fiscal year 2017 that would slash funding for the Internal Revenue Service and overhaul the Consumer Financial Protection Bureau. The measure would cut $236 million from current spending levels at the IRS, and is expected on the floor this week.
IBANYS MEETINGS & CONFERENCES
IBANYS' Second Annual Lending Conference
,
co-sponsored with T.Gschwender & Associates, is
June 28-29
at the Woodcliff Hotel & Spa in Fairport (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 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 one-and-a-half day conference. We'll cover
all aspects of the lending process, with presentations and discussions on loan review, risk, sales, portfolio management and the impact of CECL.
For
reservations, 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.
The Independent Bankers Association of New York State and New York Bankers Association co-sponsor the 2016 Human Resources Management Conference tomorrow and Friday,
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.
IBANYS' 42ND ANNUAL CONVENTION:
October 3-5,
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 have a full menu of speakers, panel discussions and presentations on the most important issues and trends impacting New York community banks:
- Bank cybersecurity from a Senior Management Perspective
- Liquidity Strategies
- Merger & Acquisition Update
- Implementing A Successful ERM Process
- Mobile Wallets
- Optimizing Your Branch Delivery System
- . . .and so much more!
. . .PLUS,
our traditional business show, silent PAC auction, 6-Minute Drills for and much more!
Watch for program details and sponsorship opportunities.
INDUSTRY INSIGHTS
Home Resales, Mortgage Applications Up
U.S. home resales rose in May, reaching a more than nine-year high, as improving supply increased choice for buyers.
The National Association of  Realtors said on today that existing home sales increased 1.8% to an annual rate of 5.53 million units last month, the highest level since February 2007.
April's sales pace was revised down to 5.43 million units from the previously reported 5.45 million units.
Sales were up 4.5 percent from a year ago. Existing home sales surged 4.1% in the Northeast.
Meanwhile, total mortgage application volume increased 2.9% last week on a seasonally adjusted basis from the previous week. Applications are now  nearly 35% higher than one year ago, when rates were considerably higher, according to the Mortgage Bankers Association. Applications to refinance home loans drove the volume, rising 7% from the previous week, seasonally adjusted. Applications to purchase a home (less sensitive to rates on a weekly basis) fell 2% for the week, but are still 12% higher than a year ago. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.76%, from 3.79%.
COMPUTER SERVICES, INC. WEBINAR:
Tomorrow, June 23, 2016 from 2:00 PM to 3:00 PM
"Quarterly Compliance Update:
June 2016"
Banks of all sizes are now expected to comply with the 2011 supervisory guidance on model risk management. Join Computer Services, Inc. (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.
- 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:
http://www.csiweb.com/resources/web
inars/quarterly-compliance-update-june-2016
CONTINUITY WEBINAR:
Tuesday, June 28: 1:00 - 1:30 PM
"FFIEC's New Proposed Rule:
Changes To Compliance Rating System
-- What Does This Mean To YOU?"
The Federal Financial Institutions Examination Council (FFIEC) is proposing to change the existing Consumer Compliance Rating System (CC Rating System) that agencies use when examining financial institutions. Under the proposed system, each institution's rating would be based on an assessment of the adequacy of its Compliance Management System (CMS). Every institution needs to fully understand the potential impact of the proposed change. This half-hour webinar will explain exactly what your institution needs to know about the FFIEC's proposed change. The webinar is designed for CEOs, CFOs, COOs, Chief Compliance Officers, Chief Risk Officers, Internal Auditors, Risk Managers, and other regulatory and risk management professionals.
The webinar will cover:
- The FFIEC's objectives in developing the proposed changes;
- The areas of your CMS that will be evaluated to determine your consumer compliance rating,and
- How you can begin preparing now to ensure that your CMS will meet agency expectations.
Continuity's experts will provide a special peek into Continuity's platform, demonstrating benefits Continuity clients receive. After the webinar, Continuity will provide participants with the proprietary RegAdvisor
(R) alert created by Continuity's Regulatory Operations Center
(R) -- which is typically sent only to Continuity clients.
TO REGISTER: Call 866-631-5556
IBANYS Member Services Programs:
Are YOU Taking Advantage?
IBANYS has introduced several initiatives which can provide real value and bottom line benefits to New York community banks. Take a moment to review these programs. If you have any questions, contact us, or visit
www.ibanys.net. We hope you'll decide to take full advantage of these exciting opportunities.
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IBANYS and NYBDC have announced
a partnership with Excelsior Growth Fund (EGF), a nonprofit Community Development Financial Institution formed by New York Business Development Corporation (
NYBDC). EGF is endorsed by IBANYS as the exclusive online lending partner for association
 members.
EGF provides innovative financial solutions and business advisory services to underserved small businesses in New York State through a fast, simple and secure online lending platform. Its core product is the EGF SmartLoan™, which features amounts up to $100,000, approvals within 1-2 days and disbursements within one week. Importantly, interest rates a fraction of those typically offered by online lenders.
EGF offers banks a unique customer retention solution when a customer either does not qualify for a bank's loan offerings, or is seeking the fast,
transparent process available through online lenders. To facilitate retention, EGF shares performance information on the referred loan portfolio on a quarterly basis and offers the opportunity for the bank to purchase referred loans at par at any time.
Additional details on the EGF SmartLoan, including eligibility criteria, are available at:
IBANYS and the New York Business Development Corporation (NYBDC) has announced a partnership
- 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!
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New York Community Bank Officers, Directors & Employees:
Sign Up For IBANYS Webinars!
On a daily basis, New York's community banks must cope with an ever wider array of challenges. Your officers, board members and employees understand that their responsibilities -- and, potential liabilities -- are not about to diminish. Is your bank Are you doing everything possible to provide the latest information and tools required to help them meet their responsibilities, and properly prepare the bank for the future? Here's one outstanding -- and incredibly easy -- way to do just that: Sign them up for
IBANYS' webinars. Our programs are specifically designed to meet the needs of New York community banks. The webinars are both effective -- and, cost-effective. Your officers, directors and employees can participate directly from the ease and comfort of their offices. Over the past two years, the number of bankers participating in IBANYS webinars has risen significantly. Join
your industry and association peers and take full advantage of these timely webinars.
Review our upcoming programs by clicking the link below:
https://ibanys.fed.financialedinc.com/store/webinar
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. . .ICBA
Bancard
ICBA Bancard provides marketing, reporting, and consultative support to help independent community banks offer their own branded credit and debit cards to consumers and small businesses. A for-profit subsidiary of the Independent Community Bankers of America (ICBA), they are the nation's premier provider of payment solutions for community banks - a result of their ability to access
best-of-class services by leveraging purchasing power.
ICBA Bancard came into being in 1986, when the cost and complexity of issuing credit cards forced most independent community banks to act as selling agents for another bank's cards. In  founding ICBA Bancard, ICBA's goal was to give its member banks access to comprehensive, affordable card services that would help them maintain control of their customer relationships. ICBA Bancard unites the combined strength of ICBA's nearly 5,000 members with the high-quality personal service characteristic of independent community banks. As the source of the best pricing, programs, and consultative support in the industry, we help banks:
- Build a card portfolio of their own to increase revenue and broaden customer relationships
- Reduce risk and expense from an existing portfolio while maintaining a strong revenue stream
For community banks that prefer not to issue their own credit cards, they can provide custom-branded credit cards, affinity cards, Visa® Platinum cards, or Visa®Business cards through their subsidiary,
TCM Bank, N.A.
ICBA Bancard also serves as an advocate for independent community banks in national policy discussions about payment systems. They help educate community banks about the need to actively offer payment services in order to retain their best customers, earn profitable returns, and be respected as full-fledged participants in the marketplace.
For more information on how ICBA Bancard can help you support your customers with credit, debit, small business and merchant offerings, please call (800) 242-4770. Or, you can Fax a request to (202) 659-3606 or E-mail [email protected].
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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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