ABA's Nichols Talks Treasury in Real Clear Politics Interview
In an interview with Real Clear Politics last week, ABA President and CEO Rob Nichols discussed the changes facing the U.S. Treasury Department as it transitions to a new presidential administration. Having served as assistant treasury secretary under George W. Bush, Nichols shared an inside perspective on what the country can expect in the months ahead.
“I think President-Elect Trump is going to look at Treasury as one of his sharpest tools to help create economic growth and additional jobs,” Nichols said, noting that one of the first orders of business for the new administration will be to fill open positions within the Treasury Department, many of which will require confirmation by the Senate. He also pointed out that the president-elect will have the opportunity to select new heads of the federal regulatory agencies within 12 to 18 months of taking office.
As the new administration outlines its legislative agenda, Nichols added that key challenges will include balancing a long list of priorities, obtaining a crucial 60-vote majority in the Senate and advancing legislation before the 2018 election cycle begins to influence lawmakers’ decisions.
“The two things we see as critically important to getting the economy moving is looking at Dodd-Frank, and looking at ways that we can remove some of the impediments to allow banks to more efficiently and effectively serve customers, clients and communities, and then tax reform,” Nichols said. “I think there’s a lot of economic growth that can be derived from a fundamental overhaul of the tax code.” Watch the interview.
FDIC Seeks Comment on New De Novo Handbook
The FDIC is asking for comments on a new handbook it has developed to help de novo banks apply for deposit insurance. The handbook offers guidance to new banks on pre-filing activities, the de novo application process and pre-opening activities. While it does not establish new policy or guidance or modify existing guidance, the handbook provides greater transparency on the FDIC’s review and approval process for de novos.
In its request for comment, the FDIC asked for feedback on the clarity and transparency provided by the handbook; whether it adequately addresses the requirements and procedures for all three phases of the de novo process; the quality of information it provides to organizers with and without previous banking experience; and on the helpfulness of comments from successful bank CEOs regarding de novo formation.
ABA has long advocated for regulators to increase their efforts to spur de novo formation and welcomed the FDIC’s announcement, the latest in a series of steps taken by the agency to encourage new bank charters. Previously, the FDIC said that it would reduce the de novo period from seven years to three years and updated its guidance on regulatory expectations for new banks.
De novo banks have been scarce in the years since the financial crisis--since 2010, there have only been three new banks chartered in the U.S. ABA will continue to provide feedback to the FDIC on these and other initiatives to increase new bank applications.
CFPB Adjusts Exemption Thresholds for Escrows
The Consumer Financial Protection Bureau has adjusted asset size exemption thresholds for banks under Regulation Z. The asset size for banks exempt from the requirement to establish an escrow account for higher-priced mortgages under Reg. Z will rise from $2.05 billion to $2.07 billion. Read more.
Free Article Explores Top 2017 Compliance Priorities
The latest free article from the ABA Banking Journal provides highlights from a recent briefing during which ABA staff experts outlined the key compliance matters that are expected to see action in 2017.
On the mortgage front, ABA staff noted that the industry could finally see a light at the end of the tunnel as the Consumer Financial Protection Bureau "sweeps up" issues related to its mortgage servicing rule, such as those involving successors in interest and loss mitigation. The Bureau is also expected to issue additional amendments to the TILA-RESPA integrated disclosures that could mean system tweaks for banks across all mortgage product lines.
Bankers are also likely to see an increased emphasis on fair lending and redlining in 2017, as well as continued debate over whether to revisit the Community Reinvestment Act criteria to take into account the rise of non-bank fintech companies. Also likely to come under closer scrutiny will be website and app accessibility for individuals with disabilities, third-party risk, and sales practices and incentive compensation programs, ABA experts said. Read the article.
Crapo Added to ABA Summit Lineup
Senator Mike Crapo (R-Idaho) has been added as a keynote speaker at the ABA Government Relations Summit, to be held March 20-22 in Washington, D.C. Crapo joins a speaker lineup which that includes award-winning journalist and Fox News host Chris Wallace and Paul Mecurio, correspondent for the Late Show with Stephen Colbert.
A member of the Senate Banking, Housing and Urban Affairs Committee since 1999, Crapo has been a strong advocate for regulatory relief, the expansion of homeownership and tax reform. As the 115th Congress prepares to take office next month, Crapo is expected to assume the role of Banking Committee chairman.
With 2017 shaping up to be a critical year in enacting pro-growth policies on Capitol Hill and in the new administration, all bank employees and directors are encouraged to attend the largest gathering of banking industry leaders in the nation’s capital. In addition to meeting with lawmakers, regulators and administration officials, bankers who attend the Summit will gain fresh insights and valuable information that they can share with their institutions and use to encourage colleagues to participate in these efforts throughout the year.
While registration for the GR Summit is free, the SDBA is offering a $250 stipend to help with travel expenses of one individual from each SDBA member bank to attend. Register now.
Happy New Year's from the SDBA
From our family to yours--Happy New Year! The SDBA hopes 2017 is a great year for you, and we look forward to serving you.
In order that our employees may ring in the new year with friends and family, the SDBA Office will be closed on Monday, Jan. 2, and will reopen for normal business hours on Tuesday, Jan. 3.
|
