by Rep. Butch Taylor (D-New Hope) would prohibit a financial institution or bank from charging a fee to cash a check which is written on an account from that financial institution or bank. This bill has been assigned to the House Banking and Insurance Committee where we will address it with Chairman Vance.
by Rep. Mike Hill (R-Columbiana), the Banking Department’s Alabama Mortgage Act, which essentially provides for the licensing and registration of mortgage brokers, and HB 642 by Rep. Mike Hill (R-Columbiana), which removes mortgage lending from the Consumer Credit Act and the Mini Code as well as alter the licensing provisions, continue to get tweaked as the Department works on issues that have arisen since their introduction. The bills are scheduled for a hearing in the House Banking and Insurance Committee on Wednesday, March 26th after the Legislature returns from their scheduled break next week.
The Senate continued on “sunset” legislation which continues the operation of state boards and commissions. Looks like several more days of this once they return.
The House was scheduled to address the “Gambling for Medicaid” bill on Tuesday but it was rescheduled as there was apparently not enough votes to pass it. They instead passed a very short calendar of bills. On Thursday, they returned with the remainder of the bills from last Thursday’s calendar. ABA’s lost note bill was on it though a joint House and Senate Committee meeting forced an early adjournment and they were unable to get to it for passage.
The Alabama Bankers Association has submitted three bills for passage this session:
- - This bill restricts the use of lender information that is publicly available including loan numbers, amounts and trade names in solicitations for services or products without the consent of the lender. Both bills are out of the banking committees in their house of origin. The House bill is scheduled to be on a consent calendar when they return.
- - This bill codifies a Supreme Court decision that an assignee of a creditor may enforce a lost note just as the creditor could. Both bills are out of the banking committees in their house of origin. This bill has been on the special order calendar several times but too far down to list to get to for passage.
- - Currently, all property is subject to a one-year right of redemption to the owner. This bill removes that the redemption period for commercial property. The Senate Banking and Insurance Committee substituted a version of HB 338 by Rep. Ford (D-Gadsden) for Sen. Griffith’s bill this week. SB 267 now reduces the right of redemption on commercial and residential property to six months. We will now push the Griffith and Ford bills. ABA is working with Rep. Buskey and members of the Black Caucus to address their concerns.
House Judiciary Committee Chairman John Conyers (D-Mich.), introduced a bill March 6 aimed at restricting card interchange fees. The Credit Card Fair Fee Act is Congress' first attempt to crack down on the rates card companies charge to process payments. The bill would establish a three-lawyer board created by the Federal Trade Commission and the Justice Department to regulate interchange fees. The legislation says that the board would determine "the appropriate weight to be given to any evidence submitted by a party regarding the rates and terms for access to comparable electronic payment systems, including rates and terms set forth in voluntarily negotiated access license agreements." The board would be required to "give significantly more weight ... to rates voluntarily negotiated ... that are substantially below those rates reflective of the market power of covered electronic payment systems that existed prior to this act." An aide to Sen. Durbin said he wants to pursue the issue and is open to the same approach being taken by Rep. Conyers.
ABA CEO Dan Bailey, ABA President Robert Bennett and ABA GRC member James Beall all were intendance this week for the American Bankers Association Governmental Affairs Summit. In addition to briefings from top members of Congress and regulators that included Treasury Secretary Henry Paulson, FDIC Chairman Sheila Bair, Federal Reserve Governor Randall Kroszner, House Financial Services Committee Chairman Barney Frank (D-Mass.), Sen. Bob Corker (R-Tenn.) and Office of Management and Budget Director Jim Nussle, the group made office visits to Senators Shelby and Sessions along with Representatives Bachus and Davis to discuss the ILC issue, credit union expansion, Farm Credit System, patent reform legislation and the mortgage “cram down” provisions in the bankruptcy bill.
— As reported last week, Reps. Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.) introduced a new credit union regulatory relief bill (H.R. 5519) that includes several of the Credit Union Regulatory Improvements Act's (H.R. 1537) less-controversial provisions, as well as some new provisions. The legislation, among other things, would permit federal credit unions to add service to underserved areas regardless of the original field of membership; exclude loans to religious organizations and to businesses in undeserved areas from the member business lending cap; permit credit unions that convert to community charters to retain their select groups under certain circumstances; and allow federal credit unions to provide short-term payday loan alternatives to nonmembers within their field of membership. Senator Mary Landrieu (D – LA) has stated she will introduce a Senate version of the Credit Union Regulatory Improvements Act with Sen. Joe Lieberman (I - CT.) as a co-sponsor.
— The issue here is if Senator Thad Cochran (R-MS) successfully adds language to the Senate version of the Farm Bill which gives First South long term lending authority. Currently, First South, which operates in GA, AL and MS, cannot makes loans passed fifteen years and must participate with banks to do so. Cochran’s language would permit them to make these longer term loans.
— Our own Senator Jeff Sessions has been championing an amendment to the patent reform bill that would limit bank liability from lawsuits brought over patent infringement pertaining to imaging following implementation of Check 21.
—The Senate Judiciary Committee postponed their meeting that included a markup of two ABA-opposed bills (S. 2133, S. 2136) that would allow judges to change mortgage terms on primary residences. The Committee began a markup of the bills last week, but held-over any votes.
Prior to the Committee’s announcement, ABA and 14 other trade groups sent a joint letter to Committee Members to reiterate opposition to the two bills. S. 2136 is not a narrow, targeted approach to the problems in the mortgage market. Instead, it includes several provisions that have nothing to do with the underlying problem that will lead to protracted litigation and will exacerbate the current contraction in the credit markets.
— As you recall, the Senate Banking Committee passed an ABA-supported bill to close the ILC loophole on Feb. 13 by an 11-10 party-line vote. A provision to exempt automakers from the legislation's restrictions has "created a partisan divide" that has impeded the measure's progress. Ranking Member Richard Shelby is adamant about closing the ILC loophole and we believe this issue will soon be resolved.
A two-part legislative proposal intended to address the problem of increasing foreclosures was to be unveiled today by House Financial Services Committee Chairman Barney Frank (D-Mass.) The first part of the proposal would provide about $10 billion in federal funds to state housing authorities so that they could work with their cities to buy foreclosed properties and return them to the tax rolls as affordable housing or rental units. Under the second part, lenders holding distressed mortgage loans would be encouraged to voluntarily write them down to a level at which borrowers could repay. The government then would buy the mortgages and refinance them for homeowners who could meet repayment obligations at the new, written-down level.
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