#2023-30, December 15, 2023

Massachusetts Bankers Association, Small Business Administration Host 2023 Annual Meeting & Lender Awards

Yesterday, the Association partnered with the U.S. Small Business Administration Massachusetts District Office to host the 2023 Annual Meeting & Lender Awards. Massachusetts Lieutenant Governor Kim Driscoll joined us to kickoff this year’s meeting and give opening remarks during which she commended the integral role Massachusetts banks play and the work they do for communities in support of thousands of businesses throughout the Commonwealth.

Congratulations to all lender award winners, including Association Members:

Bank of America – Lender of the Year to Retail

Berkshire Bank – Lender of the Year to Women Owned Businesses

Cambridge Savings Bank – Lender of the Year to Restaurants

Eastern Bank – 7a Lender of the Year & Top Jobs Creation & Retention Leader

M&T Bank – Lender of the Year to Minority Owned Businesses

Rockland Trust – Top 3^rd Party Lender in Massachusetts

Webster Five – Lender of the Year to New Businesses

Kathleen Murphy, Massachusetts Bankers Association President & CEO, addresses the crowd at the 2023 Annual Meeting & Lender Awards

Masschusetts Lt. Governor Kim Driscoll addresses the crowd at the 2023 Annual Meeting & Lender Awards

Massachusetts Bankers Association Joins ABA and State Banking Associations Urging Federal Reserve to Seek Consensus on Rulemaking

In a letter to Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, the Association joined the American Bankers Association and state banking associations across the country to urge the Federal Reserve to seek consensus among the Board “to make durable rules that endure the inevitable political swings” arguing that without such support, “the regulatory pendulum could become its own destabilizing risk to the banking system.”

The letter emphasized the importance of ensuring that community banks are not negatively impacted by sweeping regulatory changes and encouraged the Board to seek input from multiple subcommittees of the Federal Reserve, including the Subcommittee on Smaller Regional and Community Banking on matters related specifically to such institutions, which traditional has sought “review policy proposals to better understand the effect that these policies and their implementation could have on smaller institutions, both in terms of safety and soundness and potential regulatory burden.”

To read the letter to Chair Powell, click here.

FDIC Issues Final Rule to Recover Loss to Deposit Insurance Fund (DIF)

The FDIC Board of Directors recently approved a final rule that would “implement a special assessment to recover the loss to the Deposit Insurance Fund (DIF) associated with protecting uninsured depositors following the closures of Silicon Valley Bank and Signature Bank.”

According to the FDIC, no banking organizations with total assets under $5 billion will pay a special assessment. The special assessment will be collected with the first quarterly assessment period of 2024.

Federal Housing Administration (FHA) Seeks Feedback on 203(k) Rehabilitation Mortgage Insurance Program Changes

Last week, the FHA unveiled changes to the 203(k) Rehabilitation Mortgage Insurance Program. According to the FHA, the proposed changes include:

• Increasing the maximum allowable rehabilitation costs for the Limited 203(k) program from $35,000 to $50,000 ($75,000 in high-cost areas) to address increased costs associated with repairs.
• Allowing 203(k) Consultant Fees to be included in the financed mortgage amount for the Limited 203(k) program, as is currently permissible in the Standard 203(k) program.
• Increasing the allowable rehabilitation period for the Standard 203(k) program from six months to 10 months, and for the Limited 203(k) program from six months to seven months, to account for longer repair and rehabilitation timeframes common for more complex projects.
• Increasing the allowable initial draw amount to include up to 75 percent of material costs, versus the 50 percent permitted under the existing policy, so the borrower can make payment to a supplier or manufacturer.
• Updating the 203(k) Consultant Fee schedule, including a streamlining of and substantial increases for, allowable fees for preparation of work write-ups and architectural exhibit reviews. FHA is also proposing increases to the maximum amount for other allowable fees, including the Draw Inspection Fee and the Change Order Request Fee. Proposed fee increases are designed to appropriately compensate Consultants for their role and incent more Consultants to participate in the program.

For more information on the proposed changes, see the links below:

• Proposed Changes to Section 203(k) Program
• Feedback Response Worksheet

Email completed worksheet to sffeedback@hud.gov. 

FDIC, OCC Release 2024 Community Reinvestment Act (CRA) Exam Schedules

The FDIC and the OCC recently issued the lists of institutions scheduled for a Community Reinvestment Act examination during the first and second quarters of 2024.

FDIC CRA 2024 Exam Schedule
OCC CRA 2024 Exam

Washington Update Notice

Due to the Christmas and New Year Holidays and depending on relevant advocacy updates, there may not be a Washington Update next week. On behalf of the Massachusetts Bankers Association, we wish you a happy, healthy and safe Holiday Season and a great start to the New Year!