Federal Government Relations
CBA Federal Government Relations
Welcome to the CBA Federal Government Relations section, where you’ll find the latest information on federal banking legislation. In addition, you can find information about federal legislative alerts. Much of the information on this page is available to members only.
Reminder: Comments on Volcker Rule Exception for Qualifying Community Banks Due April 9
The financial regulatory agencies have issued a proposed rule to implement a section of S.2155 that grants an exemption from the Volcker rule for community banks that meet certain qualifications; for instance, banks that have $10 billion or less in total consolidated assets as well as trading assets and liabilities of 5 percent or less of total consolidated assets.
Federal Reserve Seeks Comments on Faster Payment System
The Federal Reserve is considering the creation of the first new payment system in more than 40 years and it is important for your bank to be heard. The Federal Reserve issued a Request for Comment on whether it should consider creating a new, faster settlement infrastructure to support real time payments in the United States. The Fed seeks comment on the benefits of it creating a new Real Time Gross Settlement System (RTGS) that would operate 24/7/365 enabling payments to clear and settle on a real time basis at any time.
ACTION NEEDED! Community Reinvestment Act Reform and Modernization: OCC Request for Public Comment
On August 28, 2018, the Office of the Comptroller of the Currency (OCC) issued an Advance Notice of Proposed Rulemaking (ANPR) concerning modernization of the Community Reinvestment Act (CRA). CRA modernization can become a reality, but achieving it requires the involvement of as many financial institutions as possible. The first step is to comment on the ANPR. The ANPR can be reviewed here.
FDIC Seeks Comment on the Treatment of Reciprocal Deposits
The FDIC is seeking comment on a proposed rule to implement an amendment to the Federal Deposit Insurance Act (FDIA) that would exempt certain reciprocal deposits from being considered brokered deposits. The amendment to the FDIA was one of the provisions of S.2155.
Comments on the proposed rule are due on or before October 26, 2018.
California Bankers Sign Letter to CFPB Regarding TRID Disclosure
On July 3, the ABA sent a letter, co-signed by several California bankers, to Consumer Financial Protection Bureau Director Mick Mulvaney, urging the bureau for regulatory relief from rules affecting residential construction lending. Specifically, the letter requests immediate action to exempt residential construction-only loans from the TRID disclosure regulation.
The California Bankers Association Applauds Senate Passage of Bipartisan Regulatory Reform Legislation
SACRAMENTO, Calif. – On a strong bipartisan vote, the U.S. Senate approved 67-31, S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act. The bill, which will now advance to the House, is designed to right-size banking regulations to allow banks to better serve their customers and their communities, while maintaining appropriate safety and soundness controls.
Treasury Releases Report Suggesting Significant Reforms to Banking Regulations
The U.S. Treasury Department has officially issued its 150-page report, making several recommendations for how Congress and the regulatory agencies can streamline bank regulation in a way that promotes economic growth.
CBA Responds to CFPB’s Request for Information on Mortgage Market Dynamics
In response to a request made by representatives from the Consumer Financial Protection Bureau (CFPB) during a recent meeting with CBA’s president and CEO, Simone Lagomarsino, we have shared with the bureau information providing evidence of the shifting marketplace dynamics relative to residential mortgage loan origination and mortgage servicing. The CFPB requested that we share additional data identifying the marketplace trends.
CECL Resources Now Available
The Financial Accounting Standards Board has just issued its new loan loss accounting framework, also known as the current expected credit loss (CECL) model. The new standard is expected to increase the allowance for loan and lease losses throughout the industry. CECL will require significant operational changes at all banks, including collecting and analyzing the type of data that supports the modeling of the life-of-loan loss expectation, as well as forecasting and quantifying losses in the future.
Action Needed on NCUA Attempt to Expand Credit Union Membership
This past November the National Credit Union Administration (NCUA) put out a proposal for comment regarding field of membership. This proposal, by NCUA’s own account, is the most sweeping change on membership limitations in the agency’s 45-year history and goes to the basic ability of credit unions to get new customers in the door.
CBA Supports Sen. Shelby’s Regulatory Relief Bill
The CBA joined the ABA and state bankers associations as signatories on a letter supporting Senator Richard Shelby’s “Financial Regulatory Improvement Act of 2015.” The associations noted that the ability of our nation’s financial institutions to support the needs of the economy has been limited by regulatory impediments that both restrict the flexibility to serve those needs and tie up substantial internal resources on unnecessary co
CBA Sends Letter of Support for S. 1137: Protecting American Talent and Entrepreneurship (PATENT) Act
Last week the CBA sent a letter to California Sen. Dianne Feinstein urging her to support the Protecting American Talent and Entrepreneurship (PATENT) Act (S. 1137), which may come before the Committee on the Judiciary in the next few weeks. Banks of all sizes license innovation and technology to support consumer use, and, as a result, they are frequently targeted by patent trolls. Nationally, banks are now one of the top ten industries targeted by trolls.
CBA Participates in ABA Freshman Fly-In
CBA President and CEO Rod Brown, Chairman Rick Sanborn, Immediate Past Chairman Jeff Ball and Treasurer Louise Walker, joined nearly 80 bankers and state association executives from across the country, participating in the ABA’s Freshman Fly-In in Washington, D.C. last week. The fly-in is part of an effort to lay the foundation for solid and lasting personal relationships with the 71 new members of Congress and educate them about key banking issues.
CBA Shares Sen. Coburn Tax Decoder Report with Rep. McClintock
Last week, CBA shared with California Rep. Tom McClintock a recently released report by Sen. Tom Coburn (R- Okla.) that highlights and identifies more than $900 billion in giveaways throughout the Internal Revenue Code. In his Tax Decoder report, Sen.
Change in FHLB Membership Criteria Proposed; Export-Import Bank Charter Extended
The Federal Housing Finance Agency (FHFA) has proposed significant changes to eligibility for membership in the Federal Home Loan Bank (FHLB) system. Under the proposed rule, members would be required to hold 1% of assets in home mortgage loans, and they would also be required to have at least 10% of assets in residential mortgage loans on an ongoing basis, not just upon application for membership.
CBA Signs ABA/State Banking Associations’ Letter to Federal Reserve on Data Security
The CBA joined the ABA and state bankers associations as signatories on a letter to Chairman Janet Yellen and the entire board of governors of the Federal Reserve, opposing the views of Sens. Richard Durbin (D-IL) and Al Franken (D-MN) who recently called for increased scrutiny on payment card issuing banks and networks.