IBANYS Weekly E-Newsletter
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- Visit our website at www.ibanys.net to review all our daily updates on COVID-19 beginning on March 16.
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The President's Message:
IBANYS News and Updates
By John Witkowski, President & CEO
ALERT: SBA OIG investigations On PPP Loans
Banks who have participated in providing PPP loans to small businesses should be aware that the SBA has been investigating PPP loans, and contacting the banks via email. After research by one of our sister state's banking association, it was determined that the request
via email
from SBA OIG was legitimate.
This is just a "heads-up" alert in case your bank has been contacted.
Below is a copy of the email that IBANYS received from the other trade association.
"One of my banks reported to me that they were contacted by SBA OIG requesting the loan file for a PPP loan of about $78,000. They were suspicious as this request was made by email. Turns out it is legit. I placed a call to the OIG seeking more information if this is part of a broader data collection. Waiting to hear back."
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IBANYS' 2020 Virtual Convention
As I noted last week, IBANYS is adapting to the new normal brought about by the pandemic including switching our 2020 Annual Convention to a “Virtual” Convention this fall.
The 2020 IBANYS “Virtual” Annual Convention is tentatively scheduled for Wednesday, September 30 – Friday October 2, 2020. Banks can register for one price, and the event will be open for all bank employees
. Look for more details as we move into August. We are working on the agenda, have confirmed a number of outstanding speakers, and are greatly appreciative of the generosity shown by our convention sponsors.
If you would like to be a sponsor,
please contact me at
johnw@ibanys.net
or 518-436-4646 for details.
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If you get the chance, please read the article from ICBA's SVP of State Association Relations, Joe Schneider. This article gives insight into a very collaborative partnership with ICBA and all other state associations who support community banks. A good read!
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Information is knowledge, and knowledge is power.
Stay safe and healthy and and look for more information to come to arrive in your email!
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As New York community bankers continue to reopen their lobbies and branches (with safeguards in place to keep their staff and clients safe and healthy as we adjust to the “new normal”) and while others take a more guarded approach, IBANYS continues to gather and disseminate to banks information on reopening and operational strategies and updates from the regulatory agencies and other resources.
If you have information you would like to share or have a comment about the newsletter, please email me at
johnw@ibanys.net
.
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IBANYS Webinars
Are you participating in IBANYS webinars? Now is the time! IBANYS webinars provide timely, important information on subjects of interest to New York community bankers including human resources, business development, investment, compliance and security and much more. They are valuable not only for their content, but for their convenience and low-cost. Take part from the comfort and privacy of your office, without leaving the bank.
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Subscription Tokens
The More You Buy, The More You Save
How does it work:
T
okens can be used to purchase live or recorded webinars anytime,
with no expiration
! Tokens for both live and recorded webinars are available for an additional fee. (What’s the difference?
Click here for the full description.)
Once you have your Subscription Token code, you can immediately register for webinars by using the code at checkout! (Subscription tokens not applicable for full series registrations, or other specials.)
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IBANYS Preferred Partners & Associate Members
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Separated but closer than ever
Joe Schneider, ICBA's senior vice president, state relations, writes about how ICBA is working with state associations to counter Paycheck Protection Program confusion and inaccurate information.
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The NextGen Scholarship is Back!
The LEAD FWD Summit is Sept. 21-22 and offered in virtual format
Due to the success of last year's NextGen scholarship program, we are excited to announce that ICBA is once again offering this exciting scholarship opportunity for our state association friends.
With the ICBA 2020 NextGen Scholarship you have an opportunity to award one community banker from your membership a fully-paid scholarship to ICBA's virtual leadership conference, the
2020 LEAD FWD Summit
(Sept. 21-22).
This is your scholarship to award to a deserving community banker in your state! We’re thrilled to assist you in further engaging the future of our industry and we’re delighted to partner on this NextGen Scholarship opportunity. For more details, including how to participate, please refer to this
informational brief
and our
ICBA State and Regional Partner web page
where you will find customizable promotional tools and assets.
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Ready to run
After a lag, prepayments are primed to take off.
By Jim Reber
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If you are inclined to read bond analysts’ research reports, eventually you’ll chance upon some commentary that addresses the performance of mortgage securities. To many of the uninitiated, which I pointedly state do not include community bankers, mortgage-backed securities (MBS) are an abstract collection of investments that have long maturities and a volatile series of principal paydowns. They seem to require a lot of effort and are only marginally tethered to the housing finance market in general. Read full article below.
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State of Cloud and Future of Work in the Post COVID Era
Date and Time
Thursday, July 30, 2020
12:00–12:30 p.m. CT (1:00-1:30 p.m. ET)
Topics include:
- State of Cloud – Past, Present, Future
- The Great Digital Awakening, Post COVID
- DAPR Analysis – Data Driven Insights on Digital Adoption Trends During Q2
- Is SaaS the 'new' F.A.N.G.? Impact of SaaS valuations topping $1.2 trillion
- Future of Work Implications in a Post COVID Era
- Rise of Automation and AI in a Post COVID Era
Please register in advance to attend and dial-in information will be sent to you ahead of the conference call. If you need an international bridge number, email Victoria Beard at
victoria.beard@simmonspsc.com
.
Content from this call cannot be referenced in any articles and this conversation should be considered "off the record.
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DFS FAQ On F
orbearance For Residential Mortgages Held In Portfolio By NYS Chartered Banks
The NYS Department of Financial Services (DFS) has issued the "Frequently Asked Questions (FAQ) document on the state's new
Residential Mortgage Forbearance Law on forbearance for residential mortgages held in portfolio by NYS chartered banks. IBANYS would like to thank the DFS team for providing guidance through this document,
which IBANYS had suggested.
The FAQ document may be accessed through the link below.
Legislature Sends Bills To Governor -- No Further Action On Forbearance Legislation (Yet)
The State Legislature was in session last week and sent a number of bills passed by both the Senate and Assembly to the Governor for his action. We have provided a summary of those bills in the link below:
The Legislature did not take up additional forbearance legislation for residential and commercial investment property mortgage payments, but is likely to do so when it reconvenes in three weeks, i.e. A.10532A, Bichotte. IBANYS opposes the legislation, and is working with the Legislature and the NYS DFS. The legislation, and IBANYS' Memo in Opposition, may be accessed in the links below.
Similar to a law passed two years ago in California, legislation headed to the New York governor’s desk would require fintech and other nonbank lenders to uniformly disclose total cost of capital, APR and other metrics to potential borrowers.
Cuomo Administration: State Facing A $4 Billion Pandemic Price Tag
The costs in New York State to an array of responses to the Covid-19 pandemic are starting to become more clear. State government agencies have so far committed to $2.2 billion worth of contracts and other costs directly related to the virus since March. The state believes the expenses will be covered by federal emergency spending authorizations from this spring. When combined with the amount the state believes local governments have spent (or committed) through various contracts, the price tag to date for the state becomes more than $4 billion, according to the Cuomo administration. (
U.S. Senate Republicans did not include federal aid to states and local governments in their opening $1 trillion stimulus package proposal, and Governor Cuomo challenged the state’s Republican House delegation to demand it.)
Legislature's Production Down For 2019-20 Session
The number of bills passed by the State Legislature over these past two years during the current 2019-20 legislative session has fallen substantially, according to the New York Public Interest Research Group: Both houses passed 16,818 two-house bills compared to 17,960 in the 2017-2018 session. The report acknowledges the effect of COVID-19 on the session’s productivity.
https://www.nypirg.org/pubs/202007/End_of_session_review_2020.pdf
Cuomo Urges Congressional Delegation nation To Push For Funding To Plug Budget Deficit
As Congress hammers out another coronavirus relief bill, Gov. Andrew Cuomo is calling on New York’s congressional delegation to push for funding to plug New York’s gaping budget holes. In
a letter sent to the state’s congressional delegation
on Wednesday, Cuomo said that the state budget was constructed to rely on federal funding to fill the $30 billion deficit New York faces over the next two years. Without additional federal aid, the letter reads, funding for schools, hospitals and local governments could be reduced by as much as 20%: “To the extent the federal legislation provides the state with funding, will be the extent of the reduction in that 20% cut.
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ICBA to Congress: Heed the Economic Recovery Experts
Data Demonstrate Community Bank Impact as Senate Debates New Stimulus
Washington, D.C. (July 28, 2020)—With new Small Business Administration data showcasing the outsized role of community banks in serving small businesses and underserved communities amid the COVID crisis, the Independent Community Bankers of America (ICBA) is urging the Senate to incorporate needed reforms in the next round of stimulus legislation.
SBA’s
data
demonstrates the overwhelming effectiveness of community banks in serving underrepresented small businesses via the Paycheck Protection Program. Community banks delivered the most PPP loans to:
- Minority-owned small businesses (72.6 percent).
- Women-owned small businesses (71.5 percent).
- Veteran-owned small businesses (63.4 percent).
Further, community banks served 98.2 percent of low-income or economically distressed counties, 96.6 percent of rural counties, and 92.4 percent of urban counties while processing PPP loans five to 10 days faster than other lenders.
"As the Senate debates the next stimulus package, lawmakers should heed the recommendations of the nation's community banks, which account for more than two-thirds of Paycheck Protection Program loans to small businesses," ICBA President and CEO Rebeca Romero Rainey said. "In the face of ongoing economic challenges, community banks are calling on Congress to advance specific policies that will have a meaningful impact on small businesses and jobs in local communities across America."
ICBA is calling on Congress to advance provisions in the Senate stimulus draft proposal to provide an intermediate forgiveness process for PPP loans under $2 million and streamlined forgiveness for loans under $150,000, an ICBA-advocated policy in bipartisan legislation (S. 4117/H.R. 7777) that Treasury Secretary Steven Mnuchin recently
called on
lawmakers to consider. As detailed in specific
stimulus recommendations
to Congress, ICBA and 42 state community banking associations are also advocating an online PPP loan-forgiveness calculator, liability protections from COVID-19-related lawsuits, and additional relief to help community banks support the economic recovery.
As the debate progresses, ICBA will continue working with Congress and the Trump administration to implement policies that will help community banks lead the economic recovery in local communities.
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The Senate GOP released their initial proposal for the next coronavirus relief package. Negotiations continue among the White House, Senate GOP and House Democrats.
Here Are the Differences to date Between the House and Senate Coronavirus Relief Bills.”
https://nyti.ms/3jXCrpZ
.
Senate Advances Garnishment Protections For Stimulus Payments
The U.S. Senate passed
ICBA-supported
legislation that would exempt Economic Impact Payments from court-ordered garnishments to pay creditors. The legislation would provide the federal stimulus payments with garnishment protections like those available to Social Security benefits. The bill must still pass the House and be signed into law.
ICBA Seeking ILC Grassroots Outreach
ICBA continues calling on community bankers to
urge their senators
to co-sponsor legislation to close the industrial loan company loophole. The
customizable message
on ICBA's Be Heard grassroots action center notes that ILCs pose a significant risk to the financial system and should be regulated like other banking institutions. The Eliminating Corporate Shadow Banking Act (S. 2839) would subject ILCs to the Bank Holding Company Act.
ICBA recently
called on
the FDIC to deny Rakuten Bank America’s resubmitted ILC application and
urged the agency
to strengthen its proposal to enhance oversight of ILC parent companies.
Through its
"Wake Up" campaign
,
ICBA will continue encouraging policymakers to open their eyes to the risky practices, costly tax subsidies, and irresponsibly lax oversight of tax-exempt credit unions.
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Federal Reserve Keeps Interest Rates Steady, Assesses Economy
The Federal Open Market Committee (FOMC) concluded its two-day meeting Wednesday and held interest rates steady, as expected. The Fed kept its benchmark overnight lending rate anchored near zero, where it has been since March 15 in the early days of the pandemic. Officially, FOMC kept its rate targeted in a range between 0%-0.25%, where it last was during the financial crisis. The decision to hold rates steady was unanimous. The Fed said the rate would stay there until officials are “confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. The Fed noted:
- The path of the economy will depend significantly on the course of the virus.
- Following sharp declines, economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year.
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