6
Wisconsin Community Banker
July/August 2014
State and National Advocacy Update
Successful
community
banking
advocacy depends on a team effort. CBW works
with Wisconsin member banks, Independent
Community Bankers of America, and other
organizations to ensure that the needs of
community banks are heard and met.
In July, FDIC Chairman Martin Gruenberg
and U.S. Rep. Sean Duffy (7th-WI) came to
Wausau to hear from Wisconsin community
bankers from across the state, as well as CBW
and WBA. They heard concerns about capital
requirements and the mandatory appraisals
required to approve home equity lines of credit.
Chairman Gruenberg reaffirmed the FDIC’s
commitment to community banking, noting,
“It is a function of our history and we need to
preserve community banking for the sake of our
economy. Community banks are relationship
lenders that make 46 percent of all loans to small
businesses and farmers.”
In a one-on-one discussion with CBW, Gru-
enberg said the FDIC will be dedicating its
resources to continue evaluating how to keep a
viable and growing community banking industry.
Also in July, CBW signed a joint letter with
ICBA and other community banking organiza-
tions, urging the Consumer Financial Protection
Bureau to revise “the current ability-to-repay/
qualified mortgage (QM) rules and escrow
requirements for higher priced mortgage loans
to allow community bank loans held in portfolio
for the life of the loan to receive automatic safe
harbor status and an exemption from the escrow
requirements if the loans are higher priced.”
ICBA, which takes every opportunity to
advocate for community banks in Washington,
and several community bankers testified on July
15 during hearings before two House Financial
Services subcommittees — the Subcommittee on
Financial Institutions and Consumer Credit and
the Subcommittee on Oversight and Investiga-
tions. They addressed regulatory relief, Opera-
tion Choke Point, Basel III, and other issues
important to our industry.
More recently, CBW worked with the Wis-
consin Bankers Association to create and send a
joint questionnaire to Republican
candidates running in the Sixth
District Congressional race. CBW
shared the results of the question-
naire with Wisconsin community
banks prior to the Aug. 12 pri-
mary. The incumbent, Republican
Tom Petri, has announced that
he will retire at the end of his term. The general
election will be held on Nov. 4.
I encourage you to get involved with Wiscon-
sin elections this year and urge you to ask the
candidates where they stand on important bank-
ing concerns. From Dodd-Frank to the CFPB to
credit unions, lawmakers’ understanding of the
issues will help determine the future success of
our community banks and local economies.
Reach Daryll J. Lund at
Serving You
Daryll J. Lund, CAE, CBW President and CEO
Community banks advocate for revised QM rules.
