Bankers raise $62,000 for IPTV
Forty volunteers from nine banks and the IBA volunteered to the help kick-off Iowa Public Television’s annual pledge drive, known as Festival, on March 1. Volunteers answered pledge phones from 6 p.m. until midnight, helping IPTV raise over $62,000. The IBA would like to thank members who volunteered to participate in the event.
‘Funnel week’ determines fate of bills at the Statehouse
At the conclusion of “funnel week” in the Iowa General Assembly, March 7 marked the deadline for bills to be voted out of the originating committees. Several bills opposed by the Iowa Bankers Association (IBA) failed to meet the “funnel” deadline and are no longer eligible for debate.
“The IBA appreciates the great work of both the majority party and minority party in not moving some of the bad-for-banking bills that we expressed concern about,” said Sharon Presnall, IBA senior vice president and lobbyist. Presnall said the IBA supports several bills that are still eligible for debate:
- The Iowa Division of Banking Policy Bill (HF 2556) would close an existing loophole created by a recent court decision that would apply to loan brokers, closers and other participants in a mortgage loan transaction but are not actually considered the “lender,” and strengthens the testing and bonding requirements for non-depository lenders qualifying as “registrants” under the code section regulating mortgage bankers and brokers.
- Data breach notification (SF 2308) proposes to address common identity theft problems and their resulting monetary losses for banks by requiring private sector businesses and public bodies to notify customers in the event of a security breach involving certain areas of “personal information.”
- Mortgage broker duty of agency (SF 2302) would subject mortgage broker licensees under Chapter 535B to new duties of: (1) acting in good faith and in the interests of the borrower – and not necessarily the broker, (2) carrying out all lawful instructions of the borrower, (3) disclosing to the borrower all material facts of the transaction, and (4) reasonable care in the loan transaction, along with accounting to the borrower for all the borrower’s money received as agent.
Iowa Business Growth offers regional seminars in April
The Iowa Bankers Association and Iowa Business Growth (IBG) are sponsoring three regional seminars in April to educate bankers on how and when they might benefit from a partnership with IBG to finance economic development projects. Morning seminars will take place April 1 in Carroll, April 2 in Johnston and April 3 in Coralville. The registration fee is $20 per registrant, which includes all program manuals and refreshments.
Since 1981 IBG has provided alternative financing resources that complement a bank’s more traditional financing tools. IBG programs include the 504 Loan Program, the Wellmark Mezzanine Fund, SBA 7(a) Packaging and the New Markets Tax Credit. A partnership with IBG enables banks to enhance their services and spend more time focusing on development opportunities. Collaborating with IBG also helps to efficiently use the time of bank staff and avoid delays for the customer.
Click here to download a registration form with seminar times and locations. More information about IBG is available at www.iowabusinessgrowth.com. Registration forms and payment must be returned by March 24. Feel free to contact the IBG office at 515.223.4511, ext. 100 or by e-mail at iabusgrowth@iowabusinessgrowth.com.
Volunteers needed for 2008 Habitat for Humanity project
Volunteers are still needed to participate in Home by the Dome, the fourth annual IBA partnership project with Habitat for Humanity. Volunteers from banks across Iowa will join the family of Randy and Maria Wallace to build their new home April 7-14 in the shadow of the State Capitol before the home is transported to its ultimate address.
Ten to 15 bankers are still needed each day between April 10-14. Bankers interested in volunteering should call the IBA’s Ben Hildebrandt at 515.286.4212.
Financial cosponsors of the project are the Federal Home Loan Bank of Des Moines, Wells Fargo and the IBA. In 2007, more than 300 bankers volunteered from 22 communities.
U.S. House hears banker issues with expanded CURIA
Congressional advocates for the credit union industry have reintroduced the Credit Union Regulatory Improvements Act (CURIA) legislation that will allow credit unions to stray even further from their mission of serving people of low and moderate incomes, while also raising safety and soundness concerns.
Testifying at a March 6 hearing of the U.S. House Financial Services Committee, American Bankers Association (ABA) Chairman Brad Rock urged Congress to preserve the traditional values of credit unions by rejecting provisions of CURIA that would expand credit union powers.
“Our issue is not with traditional credit unions, but rather a new breed of credit unions that wants to grow aggressively, serve the well-off and large businesses, and take over small credit unions to expand their charter,” said Rock, who is president and CEO of Bank of Smithtown in Smithtown, N.Y. He said he opposes CURIA provisions expanding the authority of credit unions to make business loans and allowing the National Credit Union Administration (NCUA) to declare entire cities underserved.
Last session, members of the Iowa Bankers Association and bankers across the country were successful in stopping similar legislation because over 130,000 bankers wrote and let their members of Congress know they were opposed to the legislation.
Prevailing during this session of Congress will take a similar effort. Please visit the Iowa Bankers Association Legislative Action Center at www.iowabankers.com and send a message to your legislators voicing your opposition to CURIA.
February survey of IBA members offers industry snapshot
Nearly 94 percent of Iowa banks have not made subprime mortgage loans within the past three years, according to results of a recent survey conducted by the Iowa Bankers Association. The IBA gave bank presidents and CEOs the opportunity to participate in a brief online survey developed by The Des Moines Register, which also surveyed Iowa credit unions. The IBA survey was conducted Feb. 25-28.
Of the 112 bank presidents and CEOs who responded, 105 indicated their institution did not make any subprime mortgage loans within the past three years. Of the seven respondents who did make subprime loans, five said the result “has been mostly good” while two indicated the result was “mixed.”
Other key findings of the IBA survey included:
- 61 respondents (or 54.5 percent) of IBA member banks characterize the 2008 banking scene as “good,” while 44 respondents say it is “fair,” four say it is “excellent” and three describe it as “poor.”
- 58 respondents (or 54.7 percent) expect that lending conditions in their area will improve in over the next 12 months, while 48 respondents (45.3 percent) expect conditions to deteriorate.
The survey results will be featured in an upcoming Register story. Click here to view a summary of the results.
IBA presents 20th Annual Athletic Achievement Award
Jodi Denk (center) of Linn-Mar High School in Marion received the 2008 Iowa Bankers Association Athletic Achievement Award on Feb. 29 during the High School Girls’ Basketball Tournament. IBA President and CEO John Sorensen (left) and David W. Mackaman, Wells Fargo Des Moines Market President & Central Territory Manager, presented the award and $1,000 scholarship. This is the 20th year the IBA has honored a student-athlete who excels on the court, in the classroom and in the community.
$1.5 million grant will help struggling Iowa homeowners
The state of Iowa has received a $1.5 million federal grant to help homeowners who are struggling to pay their mortgage. The grant money will create “Iowa Mortgage Help,” an initiative to increase the capacity of foreclosure-prevention counseling agencies around Iowa.
The efforts will support and expand the Iowa Foreclosure Hotline started last September, which has already received about 8,000 calls and is handling 700 cases. The goal is to assist at least 7,000 Iowans before the grant expires at the end of the year.
“We want Iowans to call the Mortgage Help Hotline if they are currently struggling or as soon as they think they may be headed toward financial difficulty,” Iowa Finance Authority Executive Director Bret Mills said in a Feb. 28 announcement.
Learn more at www.iowamortgagehelp.com.
Fannie Mae, Freddie Mac agree to combat appraisal fraud
Fannie Mae and Freddie Mac have signed agreements with the Office of Federal Housing Enterprise Oversight (OFHEO) and New York State Attorney General Andrew Cuomo. Under the agreements, Fannie Mae and Freddie Mac would only buy mortgage loans that meet new appraisal standards beginning Jan. 1, 2009.
The agreement seek to strengthen the independence of the appraisal process by eliminating broker-ordered appraisals, prohibiting appraiser coercion and reducing the use of appraisals prepared in-house or through captive appraisal management companies in underwriting mortgages.
The agreements also enhance quality control in the appraisal process and establish a complaint hotline for consumers. A Home Valuation Code of Conduct, also effective Jan. 1, 2009, will apply to lenders selling mortgages to Fannie Mae or Freddie Mac. For more information visit www.ofheo.gov.
Order the 2008 Iowa Directory of Financial Institutions2008
The Iowa Bankers Association’s Iowa Directory of Financial Institutions offers the most up-to-date information on Iowa banks, thrifts and credit unions. The directory includes every deposit-taking institution and branch, by city or town, in Iowa. Reserve your copies of the 2008-2009 directory today. The price for IBA members is $35 (non-member price is $60).
Order forms are available in this week’s edition of Extras. If you are already a subscriber, please do not fill out an order form. We already have your directory order in our system. Contact the IBA’s Kristi Junkin at 800.532.1423, ext. 4245 with any questions.
BUILD Update
Thank you to the IBA members who have contributed to BUILD since the beginning of 2008. So far your support has raised a total of $10,037 for BUILD. Members are encouraged to help meet the 2008 BUILD goal of $170,000. A complete list of contributors will be provided in a future issue of Exchange.
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