Legislature Has Busy Week - Several Bills of Interest Receive Action

GBA publishes a weekly Legislative Update giving our members the latest information about the legislation we are monitoring on your behalf.  This week, the General Assembly was in session for four days, but were active with legislation of interest to bankers.  In this week's Legislative Update, we report:

• Mortgage Closing Exemptions Bill Passes Senate

• Hearing Scheduled Monday on GBA-supported Mortgage Satisfaction Bill

• Filing Fees/Recordings/Indexes Bills Introduced

• Nationwide Mortgage Lender/Broker Licensing Bill Passes House

• GBA Amendments Successful to Proposed Uniform Security Act

• Hearing Held on Watercraft Titling Bill

• Uniform Prudent Management of Institutional Funds Act Reported from Subcommittee

• Refund Anticipation Loan Bill Introduced - Could Have Adverse Effect on Bank Loans

• Senate Resolutions Honor Bankers Morgan Murphy and Tom Gilliland

Please contact GBA's Elizabeth Chandler with questions about any of these issues.

Bair Addresses Industry Fallout from Subprime Meltdown

FDIC Chairman Sheila Bair testified recently before the Senate Banking Committee and in perhaps an understatement, opened her remarks by saying, “…problems in the subprime mortgage markets are affecting the broader U.S. housing markets and the economy as a whole, and pose a significant policy challenge for the industry and regulators.”  Among the facts she gave the Senators:

• Foreclosures are up 60% from prior year

• The combination of declining home prices and scarce refinancing options will stress borrowers with subprime hybrid ARMs and other nontraditional mortgage loans

• Between year-end 2003 and mid-2007, nearly 5 million subprime hybrid loans were originated

• Approximately half are still outstanding (estimated amount:  $441 billion)

• Foreclosure costs can run to half or more of the loan amount

On other non-traditional mortgages, she reported:

• More than four in five Alt-A loans securitized in 2006 were low- or no-doc loans

• 75 percent or more of borrowers with payment-option loans have been making the minimum payments during the starter period, resulting in negative amortization

Bair reiterated her support for systemic loan modifications to prevent further deterioration in the market, and concluded:  “Congress, the SEC, the Treasury Department, as well as federal bank regulators have expended considerable time and effort to assure that the [servicing] industry has authority under tax and accounting rules to modify loans proactively.  The industry needs to demonstrate greater commitment to using those authorities.”

FDIC Announces Pilot Banks for Small Dollar Program

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) recently approved a two-year pilot project to review affordable and responsible small-dollar loan programs in financial institutions. The purpose of the study is to identify effective and replicable business practices to help banks incorporate affordable small-dollar loans into their other mainstream banking services.

Fed Reports Tighter Lending Standards

The Federal Reserve just released their senior bank loan officer survey and the results should be of no surprise:  U.S. banks have tightened their lending standards and terms for businesses and consumers during the last three months. 

Four Breakout Sessions Scheduled at Annual Convention

In addition to top quality general session speakers, four excellent breakout sessions have been scheduled for the 2008 Annual GBA Convention.  This premier event will be held on June 15-18 at the St. Regis, Monarch Beach in Dana Point, California.  One of the breakout sessions is specifically designed for outside bank directors and will be led by Geri Forehand with Brintech, Inc., in Atlanta.  Geri will explore the area of directors evaluating their own performance, how to go about performing the evaluation and what they can learn from the results.  This session will be a great opportunity for directors to understand their important role of working with the bank’s management in pursuing the bank’s overall strategic plan.

In-House Director Training Available through GBA

As Directors fall under increasing regulatory scrutiny, financial institutions must implement programs of continuing education for their Directors.  The Georgia Bankers Association has designed three exclusive onsite offerings with the objective of expanding each Director’s knowledge and experience by tailoring educational programs to each unique board and institution.  Led by Geri Forehand, Director of Financial Services at Brintech, Inc. in Atlanta, these programs are designed for both “inside” and “outside” members of the Board as well as executive officers.  DeNovo Director Training is the first step to regulatory compliance and focuses on Board activities considered essential by both regulators and industry experts. 

Financial Risk Management Conference a Success

Over 100 bankers and associate members attended the 2008 Financial Risk Management Conference held January 30-31 in Atlanta.  This year’s Asset/Liability Committee Chair, Tom Redding, Senior Vice President and CFO of The First State Bank in Stockbridge, and the entire Committee planned an excellent agenda.  The following presentations are available online: 

• Reflections on the Current, Regional Economic Climate  –
  Dr. Roger Tutterow, Mercer University

• Investment Portfolio Strategies in Today’s Market Place – Rick Trent, Morgan Keegan & Co., Inc.

• Is Liability-Based Liquidity Right for You? – Karl Nelson, Silverton Bank

• 2008 Outlook for Community Banking & What Just Happened in 4Q07 – Chris Marinac, FIG Partners, LLC

A special thank you to our sponsors:  The Federal Home Loan Bank who sponsored the reception and Morgan Keegan & Co., Inc. who sponsored the continental breakfast. 

Thank you also to our exhibitors:  Crowe Chizek and Company, LLC, MainStreet Technologies, Inc. and Stokes, Lazarus & Carmichael, who also donated the plasma TV door prize.  For more information about the conference, please call GBA’s Marybeth Jones at (404) 420-2032.

Advanced Compliance Symposium Rescheduled

GBA’s annual Advanced Compliance Symposium originally slated for February 26-27 has been rescheduled to March 4-5.  The location of Idle Hour Country Club remains the same. 

Last Call for ISO Management Seminar - February 13

There’s still space available for GBA’s Effective Information Security Management seminar scheduled for Wednesday, February 13 at the Ramada Plaza in Macon.  The registration fee is $195 and the instructors are Kimberly Tallant with Gladiator Technology, Alpharetta, and Jamie Davis with Safe Systems, Inc., Alpharetta.

The 2008 Operations and Technology Conference scheduled for March 5-6 at The Cobb Galleria in Atlanta will hold an open forum discussion session facilitated by Mike Odom with Great Oaks Advisors, LLC in Richmond Hill.

GBA will host its Construction Lending seminar on Tuesday, February 19 at the Ramada Plaza in Macon.  Designed for construction lenders, credit analysts, loan review and administration personnel,  this one-day seminar is designed to help professional bankers keep their focus on prudent and critical risk management aspects of construction lending. Some of the topics to be covered include:

Mark Your Calendar - Bank Security Conference Announced in Savannah

The 2008 Bank Security Conference is scheduled for April 3-4 at the Savannah Riverfront Marriott.  The 2007-2008 Security Committee is finalizing the agenda and the brochure will be available soon.  A block of rooms has been reserved at the hotel until March 2.

Just a reminder that GBA will offer the following webinars during the weeks of February 11^th and 18^th.  Webinars offer the opportunity and convenience of having a seminar at your bank.  All you need is a computer, Internet access and a telephone.

• Compliance Issues for Consumer Lending – Feb. 12

• Compliance Update - What's New? – Feb. 12

• Frontline Deposit Compliance, Part 2 – Feb. 12

• Dealing with Subpoenas, Summonses, Garnishments & Tax Levies – Feb. 13

• Implementing the New Identity Theft Red Flags, Pt. 1 – Feb. 14

• Avoiding Losses on U.S. Treasury Checks – Feb. 20

• Legal Issues Involved in Collection – Feb. 21

Just a reminder that the following AIB online classes begin the week of March 3.  Please register two weeks in advance to secure a seat in the class.  These courses are instructor-facilitated with weekly assignments.  They can be taken from the comfort of your home or the convenience of your office.  All you need is a computer, printer and Internet access. (Classes with an asterisk * require Microsoft Excel Software.)

• ABA Online Review Course for the CTFA Exam (open enrollment), 12 weeks, $795

• Consumer Lending, 16 weeks, $385

• Financial and Business Planning for Bank Marketers,
  9 weeks, $295

• Introduction to Mortgage Lending, 16 weeks, $385

• IRA Online Institute, 12 weeks, $1,495

• Team Leader Certificate, 16 weeks, $695

• Today's Teller: Developing Basic Skills* (open enrollment), 8 weeks, $295

• Understanding Your Construction Borrower, 10 weeks, $385

There is still availability in the following AIB Online classes beginning February 25.  Please register as soon as possible to secure a seat in the class.

• Commercial Lending, 16 weeks, $385

• General Accounting*, 16 weeks, $485

• Principles of Banking, 16 weeks, $385

• Problem Loan Workouts, 6 weeks, $295

Please see the AIB Online Course Schedule for a complete listing or call GBA’s Alison Moreau at (404) 420-2034 with questions.

The GBA Insurance Trust, Inc. Board of Directors welcomes to the Trust Community First Bank of Georgia, I.O., Elberton, Neal Glenn, CEO.

GBA Job Bank

Some of the Services Available Through GBA Services, Inc.

Four people involved with Georgia banking were tragically killed last week in a plane crash in North Carolina.  Our sympathies to the families and colleagues of:  Robert Butler, Senior Vice President of Facilities and Development, Georgian Bank, Atlanta;

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Georgia Bankers Association • 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848 • www.gabankers.com