Independent Banker - December 2017 - 27

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event of short-term losses.
While Congress is still
working to get housingfinance
reform off the
ground, ICBA's pleas on
GSE capital appear to have
the ear of FHFA director
Mel Watt. Watt has repeatedly
told lawmakers that
he is considering actions to
prevent Fannie and Freddie
from having to take a
Treasury draw. Meanwhile,
bipartisan appeals from
the Republican National
Committee and Senate
Banking Committee Democrats
note that allowing
the GSEs' capital reserves
to be exhausted would threaten the
nation's housing recovery and risk
another taxpayer bailout. While the
time has come for Congress to act
on comprehensive housing-finance
reform, the process should begin with
rebuilding capital.
With much work to do in a few
short weeks, ICBA will remain
fully engaged on all fronts. We
thank community bankers for their
consistent commitment to advocacy
throughout 2017.
All smiles-Secretary Steven Mnuchin incorporated key
recommendations from ICBA's Plan for Prosperity in 2017 Treasury reports.
Karen Thomas is ICBA senior vice president,
government relations and public
policy. Paul Merski is group executive
vice president, congressional relations
and strategy.
2017 advocacy report card
While Capitol Hill wraps up unfinished business this month, community banks have already racked up numerous
advocacy successes in 2017.
» Plan for Prosperity: Roughly two dozen ICBArecommended
regulatory relief provisions passed the
House as part of the Financial CHOICE Act, with many
others advancing.
» Arbitration: Congress passed an ICBA-supported
resolution to nullify the Consumer Financial Protection
Bureau's rule prohibiting consumer arbitration
agreements after receiving nearly 2,000 community
banker letters.
» Estate tax: The Treasury Department withdrew a
proposal to effectively raise the estate tax by more
than 30 percent for certain closely held businesses
like community banks.
» Small-dollar rule: The CFPB's final rule on payday,
vehicle title and certain high-cost installment loans
incorporates ICBA recommendations to fully exempt
thousands of community banks.
» Fintech: SoFi Bank withdrew its deposit-insurance
application with the FDIC, though ICBA continues to
oppose Square Financial Services Inc.'s application
and is calling for an end to the industrial loan corporation
loophole.
» Credit unions: In addition to challenging the National
Credit Union Administration commercial lending and
field-of-membership rules through the courts, ICBA
is using the tax-reform debate to spotlight the credit
union tax exemption.
» Farm Credit System: In a statement to Congress
and in meetings on Capitol Hill during the 2017
ICBA Capital Summit, the association has called
on lawmakers to conduct a series of hearings on
Farm Credit System abuses and the Farm Credit
Administration's complicity.
»Payments: ICBA and community bankers were active
participants in the Federal Reserve Faster Payments
Task Force, whose report on enhancing the speed,
efficiency and security of the US payment system
incorporated ICBA proposals.
» Fair lending: ICBA called on the Trump administration
to rein in the overzealous application of fair-lending
laws and is seeking a meeting with Attorney General
Jeff Sessions to discuss Justice Department
enforcement.
»Agriculture: ICBA is working with lawmakers to
ensure proper funding for the 2018 farm bill, crop
insurance and USDA guaranteed loan programs amid
weak farm incomes and commodity prices.
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Independent Banker - December 2017

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