Let Your Voice Be Heard: Last Call for Annual GBA Legislative Reception

There’s still time to register for GBA’s annual Legislative Reception. It is extremely important for new and incumbent members of the Legislators to hear from you the significant issues we’re facing, so please plan on attending. The reception is Wednesday, Jan. 14, at the Georgia Aquarium from 6:30-8 pm. Attendees will also have the opportunity to tour all Aquarium    

2009 Legislative Session to Convene Next Week

The 2009 session of the Georgia General Assembly will convene on Monday with legislators immediately expected to go to work on reducing the state's $2+ billion revenue shortfall.  With the state budget in disarray because of the national and state economic climate, we expect legislators to look at ways to hasten the recovery and provide help to individuals and businesses.  We will be publishing the first Legislative Update next Friday, but here is a short list of issues we expect to be considered:

• Foreclosure. Bills are already pre-filed dealing with foreclosure scams and establishing a time frame and penalties for filing the deed after a purchaser buys a property in foreclosure. We expect many other foreclosure-related bills to be introduced that could impose a foreclosure moratorium, require foreclosing lenders to notify tenants and grant additional tenant rights or even institute judicial foreclosure.

• Evidence Code. A bill has been pre-filed at the request of the State Bar of Georgia to re-write the evidence code. Of significant interest to bankers will be the language that affects electronic documents.

• Tax Credits. We have already reported on a joint Economic Development Committee meeting where Lt. Gov. Casey Cagle endorsed a tax credit for homebuyers to help reduce the housing inventory. Homebuilders, Realtors and others are expected to press for similar initiatives.

• Banking Department Legislation. The Department has shared a draft bill with us they have asked to be considered dealing with certain capital provisions, fines and penalties for failing to respond to Department requests for information, and the extension of regulatory orders to holding companies. The Department will also be offering a separate bill dealing with mortgage broker and lender licensing.

The Securities and Exchange Commission this week recommended against suspending fair value accounting, but did suggest improvements in how the current requirements are applied. Congress required the report in the Emergency Economic Stabilization Act, and the SEC's conclusions were no surprise to anyone.  The report claims that fair value accounting "did not appear to play a meaningful role in the bank failures" in 2008. The report claimed that bank failures "appeared to be the result of growing probable credit losses, concerns about asset quality, and in certain cases, eroding lender and investor confidence." The SEC said the improvements should include "reconsidering the accounting for impairments and the development of additional guidance for determining fair value of investments in inactive markets, including situations where market prices are not readily available."

We reported just before the holidays the 10 questions the Congressional TARP Oversight Panel laid out to the U.S. Treasury. Treasury this week published its answers to those questions. Unfortunately for those of you still waiting to better understand the application and approval process for CPP funds, there’s not a lot of new information for you. However, it is a thorough, one-stop summary of Treasury's intentions, actions to date and processes in place. The report emphasizes Treasury's intent for CPP funds to be invested in “healthy” banks, and that “includes regional, small and community banks, as well as Community Development Finance Institutions, all of which play a vital role in their communities.” This general description does not

We understand that some of our banks were interested in the possibility that FDIC Temporary Liquidity Guarantee Program funds could be used by holding companies as capital for subsidiaries. The FDIC has clarified its position on this in its revised TLGP FAQ’s, and unfortunately the answer is not what some would want. The TLGP wasn’t intended to be a capital enhancement program, according to the FDIC, so The FDIC envisions few if any circumstances under which it would approve holding company applications to establish a cap or to increase a

Lots of people are tallying up the commitments and investments the U.S. Treasury has made from the $250 billion pool of Capital Purchase Program funds. The Treasury published its required regular report on TARP this week, which outlined funding and commitments as of Dec. 31, 2008. This is the only official tally available. The Treasury’s report states that since the launch of the CPP in October 2008 through Dec. 31, 2008, Treasury has invested a total of $177.5 billion in senior preferred shares in 214 financial institutions in more than 40 states and Puerto Rico, and has committed to purchase another $10 billion from an additional
 

Reasonable property appraisals are critical in today’s real estate environment. To that end, Fannie Mae and Freddie Mac have announced a new Home Valuation Code of Conduct they will implement May 1. The Code will apply to lenders selling single-family mortgage loans to the two companies. Among the guidelines, lenders will be able to continue using in-house appraisers provided there are internal controls to ensure that appraisals are made independent of loan production.

Regulators this week published final questions and answers related to the Community Reinvestment Act based on feedback to guidance proposed in July 2007. Notably, the final information strongly encourages financial institutions to take steps to help prevent home mortgage foreclosures. “The new and revised Questions and Answers encourage financial institutions to participate in foreclosure prevention programs that have the objective of providing affordable, sustainable, long-term loan restructurings or modifications for homeowners who are facing foreclosure on their primary residences,” the interagency release about the publication said. The questions and answers also address activities undertaken by a majority-owned financial institution in cooperation with a minority- or women-owned financial institution or a low-income credit union. There are also  

Mortgage delinquencies, foreclosures in process, and other actions leading to home forfeiture continued to rise, but newly initiated foreclosures dropped by 2.6 percent from the second to the third quarter of 2008. That’s the news from the OCC and OTS Mortgage Performance report for the third quarter of 2008, issued Dec. 22. The report also shows that loan modifications increased 16 percent, to more than 133,000.

2008 BankPAC Campaign Wrap-up

Since the last Bulletin, the following companies have contributed to the GBA StatePAC:

• Peoples Bank, Lyons, Mike Gay, CEO

• Moore, Clarke, Duvall & Rodgers, P.C., Albany, James Moore, President

• Equifax, Inc., Atlanta, Jeff Wansley, AVP, Government Affairs

• Banker's Dashboard, LLC, Stockbridge, Chris Bledsoe, CEO

The officers, directors and staff of Guardian Bank, Valdosta, Ansel Clark, CEO, contributed to the GBA FedPAC. Please see the BankPAC Campaign Update for total contributions by group. For more information, please call Elizabeth Chandler at 404.420.2027.

Gregory Miller, Chief Economist, SunTrust Bank, Inc. will present a current, regional economic outlook and Christopher Low, Chief Economist, First Tennessee Capital Markets, will present a national economic forecast at the annual GBA Financial Risk Management Conference.

The Operations and Technology Conference is scheduled for March 4-5, 2009 at the Cobb Galleria Centre in Atlanta. Join Keith Blair, Account Executive with Visa, as he discusses debit card fraud abatement and chargeback rights. Other topics on the agenda include technology trends, mobile devices and remote access best practices, BSA from a technology perspective, a regulatory update, and peer discussion. A block of rooms has been reserved at the Renaissance Waverly Hotel until Feb. 10.

The annual HR Professionals Institute is scheduled for March 11-13, 2009 at the Savannah Riverfront Marriott. The 2008-2009 Human Resources Committee has planned an informative agenda. Topics include executive stress management, healthcare plans and how they are structured, resources for reducing financial stress for employees, how to adjust pay scales to get them in line, legal update, and peer exchange. A block of rooms has been reserved until Feb. 10.

The Department of Labor has issued new regulations that fundamentally change community bank obligations under the FMLA. Those regulations, which impact most banks with 50 or more employees, go into effect on Jan. 16, 2009. Join Steve Greene, Helms & Greene, LLC and Marian Exall, Employment Law Compliance, Inc., in a free telephone briefing on Jan. 16 from 2 pm to 4 pm. Steve and Marian will

HMDA and CRA Workshop – Jan. 21 in Macon

Do you know what types of loan applications are HMDA reportable? Do you know what the regulatory consequences are for non-compliance? If not, make plans now to attend GBA’s HMDA and CRA Workshop on Jan. 21 at Idle Hour Country Club in Macon. This one-day seminar is designed for compliance officers, loan officers and other bank personnel responsible for HMDA data collection and reporting and is led by Steve Moore with Bank Compliance Services, Avondale Estates. Other topics to be covered include:

• How to identify refinance and home improvement loans that are HMDA reportable

• What to expect from the bank regulators regarding HMDA

• What is a “community development” loan, service or qualified investment?

• Should the bank collect data on CRA loans even though it will not report the data?

With questions, please contact GBA’s Courtenay Pope at 404.420.2015.

Do you know the prerequisites for successful construction lending?  Can you structure a construction loan?  In not, plan to attend GBA’s Construction Lending seminar scheduled for  Feb. 5 at Idle Hour Country Club in Macon. Led by Roy Johnson with Capitol City Bank & Trust Company, Atlanta, this seminar is designed for construction lenders, credit analysts, loan review and administration personnel.

Make sure you know the ins and outs related to the Individual Retirement Account by attending GBA’s annual IRA Basics seminar Feb. 11 at the Holiday Inn Lanier Centre in Gainesville or Feb. 12 at Idle Hour Country Club in Macon. Designed for new account representatives, certificate of deposit personnel and any officer/manager who oversees the IRA department, the seminar will be led by Patrice Konarik with Sunwest Training Corp. in Gilchrist, TX.

There are unprecedented challenges facing those of us in the financial industry today and strong leaders are essential. The economy is in recession, our banks are struggling with mounting losses, customers are nervous, new regulations are passed, existing regulations are amended and there are changes almost daily. If you are the Leadership GBA Representative for your bank, that’s why the Leadership GBA Peer Group is for you. It’s a place to share ideas that work, get training about today’s

AIB Analyzing Financial Statements will be offered again beginning Jan. 20 for 10 weeks. This class will be taught by Peter Faser of Security Bank at Georgian Bank, Atlanta. Class will meet every Tuesday from 6 p.m.-9 p.m., ending March 24. The registration fee is $270 and includes the cost of the textbook.

The following instructor-led AIB online classes begin the week of Feb. 2. Please register two weeks in advance to secure a seat in the class. These courses are instructor-facilitated with weekly assignments, and 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

• Banking Today, 5 weeks, $315

• Economics for Bankers, 16 weeks, $405

• Today's Teller: Developing Basic Skills* (open enrollment), 8 weeks, $315

• Trust Operations, 15 weeks, $405

There is still availability in the following AIB Online classes beginning Jan. 21 & Jan. 26. Please register as soon as possible to secure a seat in the class.

• ABA Online Review Course for the CRCM Exam, 8 weeks, $675 (Jan. 26)

• Commercial Lending, 16 weeks, $405 (Jan. 26)

• Consumer Lending, 16 weeks, $405 (Jan. 21)

• Introduction to Mortgage Lending, 16 weeks, $405 (Jan. 21)

• Law & Banking: Applications, 16 weeks, $455 (Jan. 21)

• Principles of Banking, 16 weeks, $405 (Jan. 26)

• Principles of Banking Accelerated, 10 weeks, $335 (Jan. 21)

Please see the AIB Online Course Schedule for a complete listing or call GBA’s Alison Moreau at 404.420.2034 with questions.

Just a reminder that GBA will offer the following webinars the week of Jan. 12:

• Are Your Marketing & Advertising Efforts in Compliance with New and Existing Standards?– Jan. 13

• Loan Documentation 101, Part 1: The Basics: Obtaining Enforceable Liens Under UCC9– Jan. 15

• CIP: What is Fact? What is Myth? – Jan. 15

Learn more about guaranteed housing loans by attending these USDA Rural Development’s FREE Guaranteed Housing Loan workshops:

• Dublin: Jan. 21 from 10 am – 12 pm.
  Contact Deborah Pennington at 478.552.0901.

• Lincolnton: Jan. 29 from 10 am – 12 pm.
  Lincoln Center, 106 May Avenue Lincolnton GA. 30817.
  Contact Roger Jenkins at 706.595.1339, ext. 4.

GBA Retirement Services, Inc. is pleased to welcome to the Trust Monroe County Bank, Forsyth, Bill Bazemore, CEO. The programs offered through the GBA Master Pension and 401(k) Profit Sharing Trust provide flexibility to meet the needs of any bank or associate member that may be looking at adding or changing its qualified retirement plan. Advantages of being part of the GBA Master Trust include GBA dedicated staff support as

Georgia banks participating in the ABA-sponsored and GBA-endorsed Bond and D&O insurance program underwritten by Progressive stand to receive a share of $4 million in underwriting profits that will be distributed soon. ABPFIC, the mutual reinsurer for the ABA-sponsored and GBA-endorsed insurance program, has declared $67.5 million in profit distributions to participants since 1991. The program offers directors and officers liability, financial institution bond, Internet banking liability, employment practices liability and other related insurance products for community banks. Insured banks that are ABA/GBA members  

Consumers now have an updated tool to help them understand how to prevent and resolve identity theft. Bank regulatory agencies have published a revised brochure that focuses primarily on Internet “phishing” by describing how phishing works, offering ways to protect against identity theft, and detailing steps to follow for victims of identity theft. The brochure includes contact information for three major credit bureaus, where to report suspicious e-mails, and where to access additional information.

Whether your bank serves a small town, a large city or an entire region, customers in your community look to you for sound advice about their money. The U.S. Department of the Treasury’s Go Direct campaign is announcing a new recognition program for financial institutions that go the extra mile in promoting direct deposit to senior citizens, people with disabilities, veterans and other members who receive federal benefits. The six-month Go Direct Community Ambassadors Program launches in January and is aimed at community- and medium-sized financial institutions. The program is simple to implement and provides banks with a flexible way to demonstrate their commitment to the community’s financial health while gaining recognition from Treasury’s Go Direct campaign.

With many banks looking for ways to cut costs during this economic downturn, it’s nice to know there are companies with the foresight to provide products that can deliver immediate savings. One of Georgia Bankers Association’s newest strategic partners, Decision Dynamics, Inc. (DDI) supplies the Premier eTitleLien™ Internet-based product for electronic liens and titles (ELT) management that not only saves you money, but reduces processing time, prevents fraud and enhances customer service.

Cut Costs/Save Time
At a recent Premier eTitleLien™ Users Group meeting, vehicle loan preparation specialists from various lenders remarked that electronic titling saves about one half of their preparation and follow-up time spent on titling activities. Hard cost savings are realized through reduced mailing costs and requests for duplicate titles. Actual savings vary depending on volume and individual practices among lenders. A Cost/Benefit Analysis Model is available upon request, to help you estimate the costs savings for your bank.

Reduce Fraud
Premier eTitleLien™ has a built-in “Lien Alert” system and other safeguards so lenders and consumers benefit from the reduction in fraud inherent in any paper-based process. Just as the risk of fraudulent paper check activity is lessened with electronic banking, so is title fraud with electronic titling. The risk of criminals obtaining multiple fraudulent loans on titles is greatly reduced when titles are recorded and released electronically.

During the best of times, lenders seek reliable, easy-to-use services offered at a fair price. In a turbulent financial climate, these requests quickly turn into critical needs. Federal Flood Certification Corp. calms the Flood Zone Determination process through its cost-effective approach that protects lenders, expedites the closing process and helps the bottom line. Federal Flood offers:

• Easy Access to fully transferable Life of Loan certificates

• Free Letter of Map Amendment and Letter of Map Revision

• Free Home Mortgage Disclosure Act data

• Free rush service

• Customized billing and reporting

• No setup charges or monthly minimums.

Federal Flood maintains an experienced staff and a commitment to the latest in technology, providing readily available expertise and support through a variety of platforms. For more information, please call Federal Flood’s Marshall Jobe at 800.449.3322, ext. 15920, or GBA’s Levi Crabtree at 404.420.2022.

Make Money, Save Money With GBA Services, Inc. Offerings

Please remember to include the Georgia Bankers Association on the list of recipients for announcements about promotions, new employees and special recognition your bank has received. 

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