Members Only Info

The 6th Annual Community Bankers Symposium to be hosted by the Federal Reserve Bank of Chicago and the Federal Deposit Insurance Corporation on Friday, November 19, 2010. There is no charge for this event, but registrations are on a first come, first served basis due to space limitations.

This year’s Symposium will focus on “Lessons to Lead Us Forward.” As we continue to adjust to the recent financial crisis, including industry and regulatory changes, all parties will need to reflect upon and apply lessons learned to future endeavors. Topics are geared to an audience of board members, presidents and chief executive officers from state member and non-member banks, bank holding companies, regulatory agencies and banking trade associations.

Recently, the Michigan Supreme Court requested the MBA and other trade associations and organizations to submit briefs of Amici Curiae in a matter involving the redemption of a mortgage at foreclosure.

The MBA, along with the Michigan Association of Community Bankers, the Michigan Credit Union League, the Michigan Mortgage Lenders Association and the Michigan Mortgage Professionals Association, will soon be submitting a joint brief to the Court arguing that Courts do not have the authority to extend the mortgage foreclosure redemption period absent fraud or irregularities in the foreclosure process and further that the purchase of the property by the lender at the foreclosure sale does not constitute an unjust enrichment. Warner Norcross & Judd LLP and Kus Ryan and Associates PLLP, co-counsel for the associations, will be submitting the brief.

The Federal Reserve finalized rules that greatly restrict certain mortgage loan originator compensation practices This includes the use of “yield spread premiums” which allows the financing of originator and other costs through the interest rate charged to the consumer.

Under the new rule, a loan originator may not be compensated based on most loan terms and conditions. Originators may continue to be paid on the bases of such elements as loan amount, long-term originator performance, and amount of work performed. Loan originators also are barred from receiving compensation directly from a consumer while also being paid by the lender or another party.

The Secure and Fair Enforcement for Mortgage Licensing Act (the SAFE Act) requires an employee of a bank, savings association, credit union or Farm Credit System institution and certain of their subsidiaries that are regulated by a Federal banking agency or the FCA who acts as a residential mortgage loan originator to register with the Nationwide Mortgage Licensing System and Registry, obtain a unique identifier, and maintain this registration. Employees who act as residential mortgage loan originators to comply with the S.A.F.E.

FDIC Ombudsman Richard Schmalzer offers bankers a confidential sounding board for banking questions relating to supervisory issues. Working as an intermediary, Schmalzer is structurally independent of the supervision function of the FDIC making him a viable resource for questions bankers may not be comfortable asking their regulator.

Schamlzer brings problems and issues from banks to the FDIC taking care that what he brings cannot be identified as a specific bank. He has examined some of the disconnect between responsible lending versus safety and soundness and the contradictory public versus privates messages of don’t lend and lend.