GOVERNMENT RELATIONS

ALBANY

• Launching an Elder Abuse Certification Program to be designed by the State DFS and available for all banks in New York. It will include training bank employees on how to recognize the signs of financial abuse. Upon completion of this certification, banks may display their certificate so consumers are aware of the special services they offer.
• Proposing new legislation to further empower banks to place holds on potentially fraudulent transactions in order to protect their consumers, and be immunized for doing so in good faith.
• Reporting Abuse: Once potential fraud is identified and a transaction hold is applied, banks will be required to report to the appropriate state agencies to take action.

• Close Consumer Protection Loopholes by amending the Real Property Actions and Proceedings Law and Civil Practice Laws and Rules to include reverse mortgages, requiring the same consumer protections for all homeowners, regardless of the lending product they utilize. 
• Launch Review of Regulations: The Governor will direct the DFS to revisit and revise any rules and regulations pertaining to reverse mortgages to help prevent future foreclosures and further protect New York homeowners.

Both the State Senate and State Assembly have new Chairmen of their respective Banks Committees in 2017. In the Assembly, Ken Zebrowski (D-Rockland County) succeeds Annette Robinson, who did not seek reelection in 2016. Zebrowski was first elected to the Assembly in a 2007 special election. He is a former County legislator. The new Senate Chair is Jesse Hamilton (D-Brooklyn) , a new member of the  Independent Democratic Caucus.  He succeeds Senator Diane Savino (D- Brooklyn), who becomes vice chair of the Finance and the Codes Committees. Senator Hamilton, first elected in 2014, spent 28 years working in the New York City Department of Finance.  IBANYS will be seeking meetings with the two new Banks Committee Chairmen to discuss our legislative priorities and concerns. We will also fully inform them about the important role New York community banks play in strengthening and driving the local and state economies, providing essential housing, small business and consumer loans while re-investing in the state's local communities.

Senate Banks Chairman Hamilton Discusses 

Committees' 2017 Issues, Priorities

Senate Banks Chair Hamilton stated he plans for the committee to "focus on more economic inclusion, expanding access to financial services, combating redlining, and strengthening protections for New York families." He noted the Committee had "made inroads in protecting consumers from subprime auto loans and protecting homeowners from foreclosures," and further noted: " Access to capital has been a challenge I have heard repeatedly voiced by small business owners, especially minority and women owned business owners. Also, I have had constituents raise fairness in reverse mortgages with me. I know that some New York communities, like those I represent in Brooklyn, have inadequate access to affordable financial services. Perversely, low-income households, the families that can least afford it, tend to pay more for regular financial services that middle income and upper income households take for granted. We have to take a hard look at the heavy costs families are paying for routine services like sending money abroad. I plan to address these challenges and more as chair of the NYS Senate Banks Committee. We need financial services that meet the needs of all New Yorkers."

Comprehensive Advisory On Revised Proposal  On  DFS Cybersecurity Reg

In late December the State Department of Financial Services (DFS) issued a revised version of proposed regulations regarding cybersecurity requirements that would apply to financial services firms overseen by DFS. These rules will impact a wide range of financial services firms, including community banks. DFS first proposed cybersecurity regulations on September 13, 2016. The DFS is inviting comments on its Revised Proposal until January 27, 2017. IBANYS has scheduled a Government Relations call this Friday, January 13 to discuss the next steps we may take. ( Click here for IBANYS' original comment letter to DFS). 

The Revised Proposal is expected to become effective as of March 1, 2017. To read a comprehensive advisory on the revised DFS proposal by the law firm of Arnold & Porter, Kaye, Scholer,

visit www.apks.com , click on the "News & Perspectives" tab, then on the January 9, 2017 New York Department of Financial Services Revises Proposed Cybersecurity Regulations . 

WASHINGTON, D.C.

House Financial Services Committee

U.S. House Republicans announced that two members of the New York Congressional Delegation have been newly appointed to serve on the House Financial Services Committee. Rep. Lee Zeldin (R-L.I.) and Rep. Claudia Tenney (R- Central NY) were added to the committee late last week. Rep. Tenney, a former member of the NYS Assembly and its Banks Committee, is newly elected to the House, succeeding former Rep. Richard Hanna, who retired. Rep. Zeldin was re-elected to his second term last November. Other New Yorkers on the Committee include Rep. Peter King (R-L.I.), Rep. Carolyn Maloney (D-Manhattan), Rep. Nydia Velazquez (D-Brooklyn) and Rep. Greg Meeks (D-Queens). Democrats have not yet announced their new appointees for the committee for 2017. The Committee is chaired by Rep. Jeb Hensarling (R-TX).

Meanwhile, House Ways & Means Committee Ranking Democrat announced the addition of Rep. Brian Higgins (D-Western New York) to the Committee.

ICBA's Updated 2017 "Plan For Prosperity Community Bank Regulatory Relief Agenda

In Other News From Washington:

• Sen. Sherrod Brown (D-OH), Ranking Democrat on the Senate Banking Committee, and former committee member Sen. Jeff Merkley (D-OR) said Monday the Office of the Comptroller of the Currency should not offer charters to financial technology firms.
• The Department of Housing and Urban Development will bring charges against Bank of America and two of its employees alleging discrimination against Hispanic mortgage customers.
• Rep. Peter Roskam (R-Ill.) will chair the House Ways and Means Subcommittee on Tax Policy. Congressional Republicans plan to pass comprehensive tax-overhaul legislation.
• President-Elect Trump is reportedly considering Jim Donovan, a managing director of private wealth management at Goldman Sachs, as Treasury undersecretary of domestic finance. If chosen and confirmed, he would be the fourth senior appointee with ties to Goldman Sachs and would be responsible for coordinating policies on banking, capital markets and regulation, and managing the issuance of the country's debt.
• Tomorrow, the Senate Banking, Housing and Urban Affairs Committee will hold a confirmation hearing on Thursday for Ben Carson, President-Elect Trump's nominee pick for HUD Secretary. Also, the Senate Commerce Committee will hold a confirmation hearing for Wilbur Ross, the nominee for Secretary of Commerce.
• Some observers believe that the future of the Consumer Financial Protection Bureau (CFPB) is up in the air, as it faces a court challenge and an incoming administration that could "completely upend" the bureau. It is unclear who will be running the agency in the months to come, or what the overall bureau may look like.  Republicans want to overhaul Dodd-Frank, and the CFPB is fighting a legal battle over its status as an independent agency. Director Cordray's term does not expire until mid-2018. While some of President Obama's financial regulators have announced plans to step down after the change of administrations, Cordray currently plans to stay on unless the court ruling is enacted and allows for his replacement.. 
   

ASSOCIATION  NEWS

IBANYS Meetings Update: 

Planning Underway

IBANYS held a planning call for members of our CFO Peer Group late last week. The purpose was to begin planning for the June 7-9 CFO/Senior Management Conference at West Point. Among the topics identified and discussed for possible agenda segments were:

We also previously held a planning call with our Compliance Peer Group to discuss our upcoming Regional Compliance Seminars  March 22 and 23 in Rochester and the Capital District -- as well as for inclusion during such other IBANYS educational meetings as Lending, Directors, CFO/Senior Management & Annual Convention. Preliminary discussion focused on:

• Incentive compensation guidelines; 
• HMDA; 
• Private flood insurance; 
• AML/BSA, and vendor & third-party oversight/management. 
• Overall risk management 

_______________________________