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Federal Legislative and Regulatory Issues
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Loss Amortization:
U.S. Reps. Ed Perlmutter (D-CO), Mike Coffman (R-CO) and
Scott Tipton (R-CO) have introduced a bill, the Capital Access for Main
Street (CAMS) Act, (H.R. 1356), that would temporarily allow community
banks with under $10 billion in assets to spread out or amortize a
portion of their commercial real estate loan losses over a seven-year
period. This
would be a helpful piece of legislation to many members and GBA supports
the concept. Some accountants and regulators are opposed to this concept
because of concerns about how the changes would affect the transparency
of bank balance sheets. A related bill has been defeated, H.R. 1723 by
Rep. Bill Posey (R-FL), that would have allowed certain circumstances in
which an institution could treat a non-accrual loan as an accrual loan
if the loan is not more than 30 days delinquent and whose payments are
not funded through an interest reserve account. In 2010, legislation
similar to the Perlmutter bill passed the House, but efforts in the
Senate to attach the bill as an amendment to the Small Business Lending
Fund legislation were not successful. |
GBA's professional staff represents the membership at the both the state and federal levels. Contact any of them with questions about issues:
Joe Brannen |
