Community bankers provide relationships to small business clients that the big banks can't match, writes Mission Valley Bank President and CEO Tamara Gurney. "Any street corner bank – big or small – can handle the transactional side of banking, but it takes a team of trusted advisors who understand a client’s business to develop programs to meet their exact needs," Gurney writes. "It is that aspect that gives community banks a distinct advantage over the larger institutional banks that often gain new customers with teaser rates and short-lived promotions but don’t deliver... Read more

A new CFPB plan unveiled last week would eliminate arbitration clauses in financial product agreements that prevent consumers from filing class action lawsuits. The proposal would require arbitration clauses to explicitly say that they do not apply in class action cases. Meanwhile, firms still using such clauses for individuals would have to provide the CFPB with information about those claims and the amount of resulting awards given to consumers. CFPB Director Richard Cordray said the arbitration clauses — which, consumers are rarely aware of beforehand — amount to a "free pass" to avoid... Read more

The CFPB has named Sunrise Banks CEO David Reiling vice chair of its Community Bank Advisory Council (CBAC). CBAC was created to ensure the perspectives of community depository institutions with less than $10 billion in assets are shared with the CFBP. Reiling hopes to further the council's mission of representing the needs of community bankers. “The experience of this past year on the Community Bank Advisory Council has been more than rewarding,” said Reiling. “I am honored to be asked to serve as the CBAC Vice Chair and look forward to engaging with the Bureau to... Read more

BankPlus Hernando branch president Dink Upchurch is banking on a sound economic recovery and the Greenwood native said all indications are that the nation is healing from the Great Recession. His branch, located on the historic DeSoto County Courthouse square, gives him an up-close view of how that recovery is hitting main street. "The thing about being on the square is that everybody knows everybody,” Upchurch said. “I’ve been in some areas that I will call places, but this is a community… The economy seems to be coming back… We made $17 million in loans this past year at... Read more

The Federal Reserve Bank of Philadelphia has lifted the Order to Cease and Desist placed on Carver Bancorp, Inc. by the Office of Thrift Supervision in 2011. The order, which required Carver to boost its Tier 1 capital and total risk-based capital ratios, came in the aftermath of the housing downturn and the recession. "The Federal Reserve Bank's action is the latest milestone in our extensive effort to restore the financial strength of our institution," said Michael Pugh, Carver Bancorp president and CEO. "We are pleased to put this chapter in our organization's history... Read more

The CDFI Fund has announced that nine additional bond loans, totaling $327 million, were guaranteed in FY 2015, bringing the total guaranteed through the CDFI Bond Guarantee Program to $852 million. All of the bond proceeds will provide long-term, fixed rate capital for projects in low-income and underserved communities. Three bonds were issued on behalf of 9 eligible CDFIs. “I am very pleased to recognize the CDFIs that are creating new partnerships and innovative ways to fully utilize the CDFI Bond Guarantee Program,” said CDFI Fund Director Annie Donovan. “The program is reaching... Read more

Private equity and hedge fund firms have bought more than 100,000 troubled mortgages at a discount from banks and federal housing agencies, emerging as aggressive liquidators for the remains of the mortgage crisis. But the firms are now drawing fire from housing advocates and lawyers for borrowers who contend they are too quick to push homes into foreclosure and are unaccommodating when it comes to negotiating loan modifications with borrowers. Federal and state lawmakers are taking up the issue, questioning why federal agencies are selling loans at a discount of as much as 30 percent to... Read more

CDBA invites all CDFI banks interested in applying for the New Markets Tax Credit (NMTC) Program to attend our NMTC webinar. The webinar will cover a range of topics, including determining whether NMTC is right for your institution and ensuring your application is as strong as possible. The webinar will feature expert input from NMTC consultant Sean Zielenbach of SZ Consulting as well as narratives from successful NMTC allocatees Central Bank of Kansas City and City First Bank of D.C. The webinar will be held Thursday, September 24, 2015 at 4:00 PM EST.... Read more