#2022-13, May 6, 2022

MBA Bankers Attend ICBA’s Capital Summit

This week, MBA staff and several bankers traveled to Washington, DC to attend the Independent Community Bankers of America’s (ICBA) Capital Summit. Participants heard from key policymakers, including Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra; Senator Mike Rounds (R-SD); US Department of the Treasury Assistant Secretary for Financial Institutions Graham Steele; and Acting Comptroller of the Currency Michael Hsu. We also met virtually with staff from several members of the Congressional delegation.

A special thanks to Kevin Briggs, vice president, BayCoast Bank; Edward Doherty, Jr., president & CEO, StonehamBank; Kevin Goffe, president & CEO, Dean Bank; Brian Loveless, chief financial officer, Cornerstone Bank; and Gary Vierra, senior vice president, BayCoast Bank for their participation in this year’s event.

Regulators Release CRA Modernization Proposal

This week, the federal banking regulatory agencies released a long-awaited proposal to update and modernize the regulations implementing the Community Reinvestment Act (CRA). The proposal, which comes after the Office of the Comptroller of the Currency’s CRA rule was rescinded last year, makes numerous changes to the regulations to reflect the changing banking system and financial services marketplace.

Specifically, the agencies noted the following goals of the proposal:

• Expanding access to credit, investment and basic banking services in low- and moderate-income communities;
• Adapting to technology changes in the banking industry by updating CRA assessment areas to include activities associated with online and mobile banking, branchless banking and hybrid models;
• Providing greater clarity, consistency and transparency in the application of the regulations;
• Tailoring CRA evaluations and data collection to bank size and type; and
• Maintaining a unified regulatory approach from all three regulatory agencies.

The proposal retains different assessment tiers for banks of varying sizes: large banks (defined as those with $2 billion or more in assets); intermediate banks ($600 million to $2 billion in assets); and small banks (less than $600 million in assets). Large banks would be subject to a retail lending test; a retail services and products test; a community development financing test; and the community development services test. Within the large-bank tier, certain provisions of the retail services and products test and community development services test would only apply to banks with $10 billion or more in assets.

Meanwhile, intermediate-sized banks would be subject to the retail lending test and the existing community development test; however, they may choose to opt into the community development financing test. Small banks would be evaluated under the current small bank lending test, unless they choose to opt into the retail lending test. Institutions can also choose to be evaluated under a CRA strategic plan as an alternative method for evaluation.

Comments are due by August 5. MBA will review the proposal in the coming weeks, and we encourage member banks to contact us with your feedback as well. To read more, click here.

MBA Joins State Bankers Associations in Opposing Durbin Amendment Expansion

Prior to a Senate Judiciary Committee hearing this week on interchange issues, the Association joined the American Bankers Association and 50 state banking trade associations on a letter opposing any expansion of the Durbin Amendment. The letter, which was sent to Judiciary Committee Chairman Dick Durbin (D-IL) and Ranking Member Chuck Grassley (R-IA), notes that more than a decade after the Durbin amendment took effect, “it is clear that interchange caps and routing mandates have hurt consumers, small businesses, and financial institutions by reducing choice, increasing costs, and reducing access to credit. Congress should act swiftly to repeal the Durbin Amendment, not expand its scope.”

To read the letter, click here. To read testimony from the hearing an view an archived webcast, click here.

FHFA to Mandate Supplemental Consumer Information Form for Fannie/Freddie Loans

The Federal Housing Finance Agency recently announced that Fannie Mae and Freddie Mac will require lenders to use the Supplemental Consumer Information Form (SCIF), which collects information about the borrower’s language preference and information on any homebuyer education or housing counseling the borrower received. The new requirement is effective for loans with application dates on or after March 1, 2023 and lenders will be required to present the SCIF questions to borrowers and report any data collected to the GSE purchasing the loan. Responses by borrowers to the preferred language question will remain voluntary.

To read more, click here.

FHLBank of Boston Announces 2022 Affordable Housing Plan (AHP) Application Period

The Federal Home Loan Bank of Boston recently announced that the application period for the Affordable Housing Program (AHP) opens on Monday, June 6. FHLBank Boston has allocated $10.6 million to the program. All applications are due by Thursday, July 28.

For information about the program, training dates, and application documents, please visit https://www.fhlbboston.com/fhlbank-boston/affordable-housing-program#/.