ABA Banking Journal - November/December 2016 - 55


> FROM THE STATES

Legislative Success
Through Banker Engagement
BY COLIN BARRETT

FEW THINGS ARE more rewarding to association professionals than passing
beneficial legislation through the joint efforts of our lobbyists and members.
Banking associations across the country-including here in Tennessee-have
the best lobbyists in the industry, bar none. They are smart, well-respected and
engaged. Yet, regardless of their strengths, their successes are directly tied to the
engagement of our members.
This past session, we built support for
the approval of contentious legislation
regarding condominium association
liens thanks to the strong engagement
of Tennessee bankers and the work
of our great legislative team. As for
some background, Tennessee was
one of 22 states on the Federal
Housing Finance Agency's "watch
list" for having adopted a uniform
law that grants "super priority" to
homeowner association liens for
unpaid dues. Foreclosures have since
occurred in several states where a
condo association foreclosed for just
a few thousand dollars in delinquent
dues and the courts ruled that the
foreclosure sale, which did not bring
nearly enough to satisfy the mortgage
lien, extinguished by law the lenders'
interest, leaving them with nothing.
Working with the TBA Bank Lawyers
Committee and Government Relations
Committee, our legislative team drafted
legislation to protect condo owners and
lenders. It allowed condo associations
to foreclose for delinquent dues and
receive six months of dues owed up to
1 percent of the original loan amount.
However, it provided that a first
mortgage would not be extinguished
if that happened. And in the event a
lender forecloses, a condo association
would receive a "payment preference"

of six months of delinquent dues up to
1 percent of the original loan amount.
While we believed this to be fair, the
Community Associations Institute, the
Washington-based trade association for
HOAs, strongly disagreed. For them,
this legislation was much more than
just a Tennessee issue. If our legislation
to remove their "super priority" status
passed, they feared the 21 other states
with similar laws might follow our lead.
To stop our legislation, CAI embarked
on a campaign to mislead lawmakers
and condo owners. They flew in a
representative from Washington to
testify and hired a PR firm to place
newspaper op-eds across the state
claiming that our legislation would
allow condo owners to live in their
homes without paying their dues,
forcing other owners to pay increased
dues. CAI also knew that politics is a
numbers game-during floor debate,
they had upwards of 50 constituents
contacting each legislator.
Ultimately, our legislation passed the
House by a vote of 88-4 and Senate
by a vote of 26-0-5. With the help of
our members and our state bankers
association alliance partners, we were
able to overcome the misleading
information and constituent phone

calls. Jim McCann, EVP and director
of mortgage lending at Avenue Bank
in Nashville, testified on what the
effect would be on mortgage lending
if a lender's lien remained at risk. His
experience as a leader in the mortgage
industry spoke to the real-life impact
of this legislation. Furthermore, in
an effort led by ABA, state bankers
associations from across the country
answered the call for information
about condo association lien laws in
other states. And when the bill was
up for a vote, bankers with personal
relationships with their legislators
were able to contact them on the floor
to inform them of the importance of
this vote.
In many cases, they were
outnumbered significantly by HOA
residents who had been provided
misleading information, but the
trust lawmakers had in their
bankers overcame the number of
opposing calls.
ABA President and CEO Rob Nichols
talks often about "political muscularity."
A key piece of this muscularity is the
personal relationships that each of
you have with your elected officials.
Your respect and influence is what
sets the banking industry apart from
any other professional industry. And
in this time of consolidation, it is
more important than ever that every
banker plays an active role in the
political process.
COLIN BARRETT is president and CEO of the
Tennessee Bankers Association.
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55


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Table of Contents for the Digital Edition of ABA Banking Journal - November/December 2016

Chairman’s View
Upfront
Picture This
Banking’s ‘Amazon Moment’
Special Report on Innovation and Technology
Building an ‘Internet of Value’
Do You Do What the Data Tell You?
Innovation in the Bank
Core Exercises
Cover Story Pillar of Her Community
Maintaining a Commitment to Ag Customers
Who You Gonna Call?
Anti-Money Laundering
Power Up Profile
Compliance ‘When Can I Call My Customer?’
Risk Management
ABA Compliance Center Inbox
From the States
Corporate Social Responsibility
Index of Advertisers
ABA Banking Journal - November/December 2016 - bellyband1
ABA Banking Journal - November/December 2016 - bellyband2
ABA Banking Journal - November/December 2016 - cover1
ABA Banking Journal - November/December 2016 - cover2
ABA Banking Journal - November/December 2016 - 3
ABA Banking Journal - November/December 2016 - 4
ABA Banking Journal - November/December 2016 - 5
ABA Banking Journal - November/December 2016 - 6
ABA Banking Journal - November/December 2016 - 7
ABA Banking Journal - November/December 2016 - Chairman’s View
ABA Banking Journal - November/December 2016 - 9
ABA Banking Journal - November/December 2016 - 10
ABA Banking Journal - November/December 2016 - Upfront
ABA Banking Journal - November/December 2016 - 12
ABA Banking Journal - November/December 2016 - 13
ABA Banking Journal - November/December 2016 - 14
ABA Banking Journal - November/December 2016 - 15
ABA Banking Journal - November/December 2016 - Picture This
ABA Banking Journal - November/December 2016 - 17
ABA Banking Journal - November/December 2016 - 18
ABA Banking Journal - November/December 2016 - 19
ABA Banking Journal - November/December 2016 - Special Report on Innovation and Technology
ABA Banking Journal - November/December 2016 - 21
ABA Banking Journal - November/December 2016 - 22
ABA Banking Journal - November/December 2016 - Building an ‘Internet of Value’
ABA Banking Journal - November/December 2016 - 24
ABA Banking Journal - November/December 2016 - 25
ABA Banking Journal - November/December 2016 - Do You Do What the Data Tell You?
ABA Banking Journal - November/December 2016 - 27
ABA Banking Journal - November/December 2016 - insert1
ABA Banking Journal - November/December 2016 - insert2
ABA Banking Journal - November/December 2016 - Innovation in the Bank
ABA Banking Journal - November/December 2016 - 29
ABA Banking Journal - November/December 2016 - 30
ABA Banking Journal - November/December 2016 - Core Exercises
ABA Banking Journal - November/December 2016 - Cover Story Pillar of Her Community
ABA Banking Journal - November/December 2016 - 33
ABA Banking Journal - November/December 2016 - 34
ABA Banking Journal - November/December 2016 - 35
ABA Banking Journal - November/December 2016 - 36
ABA Banking Journal - November/December 2016 - 37
ABA Banking Journal - November/December 2016 - Maintaining a Commitment to Ag Customers
ABA Banking Journal - November/December 2016 - 39
ABA Banking Journal - November/December 2016 - 40
ABA Banking Journal - November/December 2016 - Who You Gonna Call?
ABA Banking Journal - November/December 2016 - 42
ABA Banking Journal - November/December 2016 - 43
ABA Banking Journal - November/December 2016 - Anti-Money Laundering
ABA Banking Journal - November/December 2016 - 45
ABA Banking Journal - November/December 2016 - 46
ABA Banking Journal - November/December 2016 - Power Up Profile
ABA Banking Journal - November/December 2016 - 48
ABA Banking Journal - November/December 2016 - Compliance ‘When Can I Call My Customer?’
ABA Banking Journal - November/December 2016 - 50
ABA Banking Journal - November/December 2016 - Risk Management
ABA Banking Journal - November/December 2016 - ABA Compliance Center Inbox
ABA Banking Journal - November/December 2016 - 53
ABA Banking Journal - November/December 2016 - 54
ABA Banking Journal - November/December 2016 - From the States
ABA Banking Journal - November/December 2016 - 56
ABA Banking Journal - November/December 2016 - Corporate Social Responsibility
ABA Banking Journal - November/December 2016 - Index of Advertisers
ABA Banking Journal - November/December 2016 - cover3
ABA Banking Journal - November/December 2016 - cover4
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