CBAI s 36 th Annual Call on Washington Now Is the Time for Community-Bank Regulatory Relief!

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1 CBAI s 36 th Annual Call on Washington Now Is the Time for Community-Bank Regulatory Relief! Community banker enthusiasm and anticipation to achieve long-overdue and well-deserved community bank regulatory relief was palpable during the Community Bankers Association of Illinois 36 th Annual Call on Washington which was held April 8 11, Again this year, CBAI s Call on D.C. was held in conjunction with the Independent Community Bankers of America s (ICBA) Capital Summit. More than 1,000 community bankers from across the country brought their message to the nation s capital - Now is the time for community-bank regulatory relief! CBAI began the Call on Washington by hosting a Welcome Dinner on Sunday evening at RPM Italian. The Dinner provided an opportunity for members and invited guests to renew old friendships and make new ones. Other opportunities for fellowship during the Call included CBAI s Appreciation Dinner at Mastro s Steakhouse and the Take Me Out to the Ballgame Farewell Reception and Dinner hosted by the ICBA. ICBA s Capital Summit included addresses by ICBA Chairman Tim Zimmerman, President and CEO-Elect Rebeca Romero Rainey, Group EVP Congressional Affairs and Strategy Paul Merski, Senior EVP Government Relations and Public Policy Karen Thomas, and the farewell address by President and CEO Cam Fine. The Summit also included addresses by Senator Pat Toomey (R- PA), Chairman of the Senate Banking Committee s Subcommittee on Financial Institutions & Consumer Protection; Joseph Otting, Comptroller of the Currency; and Mick Mulvaney, Acting Director of the Consumer Financial Protection Bureau.

2 Senator Pat Toomey (R-PA) The excitement at this years Call on D.C. was enhanced by the U. S. Senate s recent passage of legislation to bring much-needed regulatory relief to Illinois and the nation s community banks. The Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) is a carefullycrafted bipartisan bill that includes common-sense improvements to financial regulations that will open doors for more creditworthy borrowers and businesses, and it will contribute to local economic growth and job creation. This important legislation will soon be considered for passage by the U. S. House of Representatives. During their meetings with House members, Illinois community bankers highlighted beneficial sections of this legislation including: Granting Qualified Mortgage (QM) status for portfolio mortgage loans by community banks (less than $10 billion in assets); Exempting certain community bank loans from escrow requirements (banks with less than $10 billion in assets); Increasing exemption thresholds for Home Mortgage Disclosure Act (HMDA) reporting (500 open-end and 500 closed-end loans); Simplifying community-bank capital requirements (banks with less than $10 billion in assets); Increasing eligibility for a short-form Call Report to restore proportionality to community-bank quarterly reporting (banks with less than $5 billion in assets); Expanding eligibility for the 18-month regulatory examination cycle for community banks (banks with less than $3 billion in assets); Easing appraisal requirements to facilitate mortgage credit in local communities; Exempting community banks from the Volcker Rule (banks with less than $10 billion in assets); Expanding community access to the Federal Reserve s Small Bank Holding Company Policy Statement to help build capital (banks with less than $3 billion in assets); and Improving regulatory treatment of reciprocal deposits and certain municipal securities.

3 Meeting with Congressman Rodney Davis (R-13 th ) Meeting with Congressman Mike Bost (R-12 th ) Meeting with Congressman Darin LaHood (R-18 th ) Meeting with Congressman Bill Foster (D-11 th )

4 Illinois community bankers acknowledged the critically important role the House Financial Services Committee (HFSC) has already played in informing and shaping the Senate legislation. There have been scores of Financial Services Committee hearings on important regulatory-relief proposals, numerous bills have been introduced in the House, passed out of the Committee and the House with wide bipartisan majorities. There are 54 sections in S. 2155, and more than 40 sections have identical or similar counterparts in House legislation. At this stage in the deliberations, community bankers expressed genuine concern that any delay or attempts to either expand or narrow the focus of the bill by the House (which would require Senate concurrence) could jeopardize the ultimate passage of this important legislation. Meeting with Congressman Raja Krishnamoorthi (D-8 th ) Meeting with Congressman Randy Hultgren s office (R-14 th ) Bill Hulse Meeting with Congresswoman Robin Kelly s office (D-2 nd ) Brandon Webb

5 Meeting with Senator Durbin s office (D-IL) Julius Niyonsaba and Senator Duckworth s office (D- IL) Erika Moritsugu and Elizabeth Sukut The Illinois community bankers message to House members of the Illinois Congressional Delegation was very clear - take-up and swiftly pass the bipartisan and carefully crafted S as - is and without any amendments. Meeting with Congressman Roskam s office (R-6 th ) Joe Fawell Meeting with Congresswoman Bustos office (D-17 th ) Trevor Rueschel Other issues discussed by Illinois community bankers during their Hill meetings included credit unions and the repeal of their costly and outdated tax subsidies; passage of a new Farm Bill that

6 would support commodity prices, enhance USDA guaranteed-loan programs and preserve cropinsurance funding; and housing finance reform that would build on what s in place today and working. CBAI extends special thanks to the generous sponsors of the 36 th Annual Call on Washington: Platinum Corporate Sponsor Federal Home Loan Bank of Chicago Silver Corporate Sponsors Community BancService Corporation Conference of State Bank Supervisors SHAZAM Bronze Corporate Sponsors Bank Compensation Consulting Equias Alliance First National Bank in Pinckneyville Rushville State Bank Corporate Sponsors BankORION First National Bank in Raymond Havana National Bank

7 CBAI Appreciation Dinner Pictorial CBAI sincerely thanks all Illinois community bankers, guests, and sponsors who helped make the 36 th Annual Call on Washington a great success! Your grassroots involvement does make a difference!