Independent Banker - April 2020 - 46

ICBA 2020/21 executive committee
the most pressing concern in the
threat to our business model is posed
by the tax-exempt, growth-obsessed
and minimally regulated credit unions.
Alice Frazier: We must have a unifi ed
voice regarding credit union tax
subsidy reform. The original purpose
of credit unions has been replaced
with a de facto bank model. Yet they
are not taxed like banks. It would
be easy to say, " We have beaten that
drum. It didn't work. " However, the
egregious actions by credit unions
are beginning to accumulate to a
level legislators can no longer ignore.
Additionally, eff ecting change to the
Community Reinvestment Act is
another area of critical importance in
2020/21. CRA should acknowledge
the good work community
banks inherently do within their
communities and provide a consistent
approach to examinations, increase
the thresholds for asset size and level
the playing fi eld with credit unions.
Pres Kennedy: It is crucial that we
make substantial progress toward
enacting FedNow, the Federal
Reserve's real-time payments
network. Also, we must continue
to safeguard against so-called
housing fi nance reform that would
disadvantage community banks.
Tim Zimmerman: There are so
many issues we are working on
for community banks that it is
hard to name just a few. But if I
have to highlight a couple, I'd say
multiple issues related to credit
unions, from the tax subsidy and
acquisitions of community banks to
unbridled expansion beyond their
approved authority. Also, CRA, BSA,
GSE reform and the Fed's faster
payments project.
Scott Heitkamp: The obvious issue
is leveling the playing fi eld with
credit unions, and ICBA has taken
this challenge head on with our Wake
Up campaign. I am 100% behind
this movement. I am also concerned
about the pace of technology and how
current regulation will be applied in
the future for our institutions.
Jack Hartings: There is not just
one crucial bill or regulatory issue;
we tell our legislators and regulators
that we are dying from 1,000 cuts.
But, as I consider current legislative
and regulatory issues, crucial ones
are the SAFE Banking Act for
cannabis banking; keeping the GSEs'
framework and recapitalizing them
to preserve the secondary market for
community bank mortgage lenders;
and leveling the playing fi eld and
making our communities stronger by
including CUs in the federal, state and
local tax base.
WHAT'S THE STORY
YOU'VE SHARED WITH
A POLICYMAKER THAT
HELPED MOVE THE NEEDLE
ON COMMUNITY BANK
ADVOCACY?
Wilcox: I have shared a lot of
community banking success stories
over the years, but a recent one was
the harm infl icted on consumers by
the qualifi ed mortgage rule and why
community bank loans that are made
and held in portfolio must be treated
as qualifi ed mortgages. As we all know,
that was included in our landmark
tiered-regulation victory known as
S. 2155.
Fisher: I've shared many stories
over the years with legislators that
46 Q ICBA Independent Banker Q April 2020
show real-life examples of the,
albeit unintended, consequences of
legislation. Many of the mortgage
regulations that were implemented
after the fi nancial crisis forced many
community banks to discontinue
or limit their mortgage lending,
especially for nonconforming
mortgage loans. The result was
that many customers living in rural
markets had far fewer choices, or even
no choices, to fi nance their homes.
These very regulations were intended
to help consumers but instead
have limited their options. Sharing
stories like this brings legislation to a
human level.
Bolton: Community banks have
survived without the help of a tax
subsidy like credit unions receive
and without the implied government
guarantees that the " too big to fail "
fi rms enjoy. We survive based on
our relationship-driven model of
local people making local decisions
and being held accountable to those
decisions by our customers and our
regulators. Our industry should be
proud that we don't have to have
regulations to tell us to reinvest in
The egregious
actions from credit
unions are beginning
to accumulate to a
level legislators can
no longer ignore. "
-Alice Frazier
Independent Banker - April 2020

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