Regulatory burdens on the banking industry have grown dramatically in recent years, stretching the resources of banks across the country and hindering their ability to help local businesses grow and create jobs.
The CBA is pleased to share with you the following video we have created that highlights the negative impact the qualified mortgage and ability to repay rules contained in the Dodd-Frank Act are having on banks’ lending activities. The video is intended to be a resource for all bankers to use to highlight the need to fix specific elements of Dodd-Frank, particularly QM/ATR, as you meet with local elected officials, community leaders, or in forums with your customers. Please also feel free to share and link to the video on your social media platforms.
Golden Pacific Bank’s President and CEO Virginia Varela says in Another Voice: Starting a Conversation on Bank Rules in the Sacramento Business Journal, “No matter what your political stance, there is something that we should be able to agree on, and that is there are too many silly, outdated and overly restrictive laws affecting community banks and small credit unions, harming small businesses and their access to capital.”
CBA President and CEO Rodney Brown discusses CBA-sponsored bill AB 2693 that seeks to make important changes to property assessed clean energy (PACE) financing, which ignores longstanding lending principles and fails to make important disclosures to borrowers.
CBA President and CEO Rodney Brown discusses the fifth anniversary of the Dodd-Frank Act in the Orange County Register and two legislative fixes currently being considered that make several common-sense changes to the law.
Regulators ensure that the banks they supervise comply with all rules and regulations by having examiners visit banks on a regular basis to review their books. Although the details vary by the size and complexity of the institution, a bank “examination” consists of a detailed scrutiny of bank assets, liabilities, income and expenses. The exam process is designed to confirm that the bank is safe and sound, maintains accurate financial statements, and is properly following all applicable laws and regulations.
Commercial banks play a major role in offering customized mortgages and consumer loans tailored to fit the unique characteristic of borrowers within their communities. Banks also are oftentimes the sole financial service provider in many of our nation’s smallest rural small towns. However, the compliance burdens and risks imposed by several requirements of the Dodd-Frank Act (DFA) and implementing regulations, particularly in the area of mortgage credit, have had negative impacts on banks, their customers and the housing market.
Federal legislation, the Community Lending Enhancement and Regulatory Relief (CLEAR) Act, has been introduced in the Senate and the House that would relieve regulatory burdens on community banks. Sens. Jerry Moran (R-KS), Jon Tester (D-MT), and Mark Kirk (R-IL) have introduced S. 1349 in the Senate, and Rep. Blaine Luetkemeyer (R-MO) has introduced H.R. 1750 in the House. The CLEAR Act is part of a sincere effort underway in Congress to address community banks’ concerns with growing regulatory burdens.