IBA E-News 2-1-19
STATE GOVERNMENT RELATIONS
The legislative landscape is starting to take shape after four weeks of work at the Indiana Statehouse. Most committees have met multiple times, and bills are starting to be heard on the floors of their chambers of origin, where votes are being taken. By our count, a total of 1,349 bills have been filed for consideration by the Indiana General Assembly.
The IBA government relations team has been active working a number of issues in multiple committees. The upcoming IBA legislative reception comes at a perfect time as the legislature starts to ramp up, giving our members an outstanding to inform legislators on how these issues impact banks in Indiana. We hope to see strong banker attendance at the event on Feb. 4.
Below are a few bills that have garnered our attention to date.
Author: Rep. Woody Burton, R-Whiteland
Summary of legislation: Urges the legislative council to assign to an interim study committee, for study during the 2019 interim, the topic of revisions to the Uniform Consumer Credit Code. Sets forth issues for consideration by an interim study committee assigned this topic. Also makes changes to the installment rule, delinquency charges and balance transfer fees.
Latest action: The bill passed the House by a vote of 76-21.
Author: Rep. Wendy McNamara, R-Evansville
Summary of legislation: Amends the statute concerning the procedures for a sheriff’s sale of real property subject to a mortgage foreclosure judgment to provide that before selling the property, the sheriff must advertise the sale by arranging for the posting of a notice of the sale on the internet website maintained by: (1) each county in which the real estate is located; or (2) the office of the sheriff; at the discretion of the sheriff. (Current law requires the sheriff to advertise the sale by publication in a newspaper of general circulation in each county in which the property is located.) Specifies that existing law governing an error or omission in a legal notice published in a newspaper also applies to a sheriff’s sale notice posted on an internet website. Provides that if: (1) a county in which the real estate is located does not maintain an internet website; and (2) the office of the sheriff does not maintain an internet website; the sheriff shall advertise the sale by publication in the county. Provides that in a case in which: (1) the sheriff must publish a sheriff’s sale notice in a newspaper; and (2) the sheriff is unable to procure such publication; the sheriff shall execute a written statement explaining why publication was not possible. (Current law does not specify that the sheriff’s statement must be in writing.) Provides that the sheriff shall: (1) maintain a record, in a printed or an electronic format, of the written statement for a period of not less than three years from the date of execution of the statement; and (2) make the statement available to the public upon request. Provides that a sheriff who posts a sheriff’s sale notice on a county’s or the sheriff’s internet website shall: (1) maintain a record, in a printed or an electronic format, of the posted notice of sale for a period of not less than three years from the date on which the notice is removed from the internet website after the occurrence of an event specified under the bill; and (2) make the record available to the public upon request. Makes conforming amendments.
Latest action: The bill passed the House 62-34.
Author: Sen. Randall Head, R-Logansport
Summary of legislation: Defines “designated representative,” “judicial proceeding” and “nonjudicial matter” for purposes of the trust code. Provides that a protective provision in a legacy trust prevents a creditor of the settlor from satisfying a claim from the settlor’s interest in the trust estate when the settlor is also a beneficiary of the trust. Authorizes the establishment of legacy trusts. Prescribes the procedures for establishing a legacy trust. Bars most claims against a legacy trust. Provides immunity to the trustees and advisers of legacy trusts and the professionals involved in establishing legacy trusts. Provides that the rule against perpetuities does not apply to legacy trusts. Adopts the uniform directed trust act, which allows for the terms of a trust to grant a person other than a trustee power over some aspect of the trust’s administration. Repeals a provision regarding duties and liabilities of a trustee under the control of a third person. Allows for the use of quiet trusts. Provides that an interested person may enter into a binding nonjudicial settlement agreement with respect to trust matters. Provides for nonjudicial account settlements.
Latest action: The bill was heard in Senate Judiciary Committee on Wednesday, but was held for a vote to address certain provisions in the bill that need more attention.
FEDERAL GOVERNMENT RELATIONS
- Rep. Carolyn Maloney (D-N.Y.) will be the new chairman of the investor protection, entrepreneurship and capital markets subcommittee. Rep. Bill Huizenga (R-Mi.) will serve as ranking member.
- Rep. Gregory Meeks (D-N.Y.) will be the chairman of the consumer protection and financial institutions subcommittee. Rep. Blaine Luetkemeyer (R-Mo.) will serve as ranking member.
- Rep. William Lacey Clay (D-Mo.) will chair the subcommittee on housing, community development and insurance. Rep. Sean Duffy (R-Wis.) will serve as ranking member.
- Rep. Emmanuel Cleaver (D-Mo.) will chair the subcommittee on national security, international development and monetary policy. Rep. Steve Stivers (R-Ohio) will serve as ranking member.
- Rep. Joyce Beatty (D-Ohio) will chair a new subcommittee on diversity and inclusion. Rep. Ann Wagner (R-Mo.) will serve as ranking member.
- Rep. Al Green (D-Texas) will chair the oversight and investigations subcommittee. Rep. Andy Barr (R- Ky.) will serve as ranking member.
Rep. Trey Hollingsworth (IN-09) has been selected to serve on two Financial Services subcommittees: Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets (vice ranking member); and Subcommittee on Diversity and Inclusion.
Agencies Issue Long-Awaited Final Rule on Private Flood Insurance Acceptance
The financial regulatory agencies last Friday released a final rule governing the acceptance of private flood insurance. The rule, which will be effective on July 1, 2019, is the long-awaited implementation of the 2012 Biggert Waters Act provision that requires federally regulated lending institutions to accept private flood insurance policies that meet certain statutory criteria. Implementation of the statutory requirements without impeding the development of a market for private flood insurance was such a challenge that the banking agencies issued an initial proposal in 2013 and, after reviewing the comments, published a revised proposal in 2016.
The final rule contains a “compliance aid” to facilitate lenders’ acceptance of such private policies. The rule also permits lenders to accept private policies that do not meet the statutory criteria but, in the judgment of the lender, offer sufficient protection for a designated loan consistent with general safety and soundness principles. Finally, the final rule permits lenders to exercise discretion to accept certain plans providing flood coverage issued by “mutual aid societies” such as agreements by Amish communities to cover flood losses to members’ property.
Senate Banking Committee Chairman Mike Crapo (R-Idaho) recently outlined the approach to data privacy and data security legislation he will continue to pursue during the 116th Congress. Of paramount importance will be ensuring “proper safeguards are in place and consumers are informed” of how their data is being used, he said.
“I intend to further explore legislative solutions that would give consumers more control over and enhance the protection of consumer financial data, and ensure consumers are notified of breaches in a timely and consistent manner,” Crapo said. “We should also examine what can be done to ensure financial regulators and private financial companies give adequate disclosure to citizens and consumers about what information is being collected about them, and for what purposes.” He added that he will also consider how to give consumers greater control over how these entities use their data.
The Trump administration will work with Congress to develop a plan for reforming Fannie Mae and Freddie Mac, an official said. In a statement covered by The Wall Street Journal, White House spokeswoman Lindsay Walters said the administration is planning to issue a framework on housing-finance reform “shortly” and will work with lawmakers as part of the process.
The statement follows reports that Federal House Finance Agency Acting Director Joseph Otting told agency staff that the administration is planning to unilaterally end the conservatorship of Fannie and Freddie and capitalize the enterprises. Otting, who is also comptroller of the currency, is serving as acting director while Congress considers the nomination of the vice president’s chief economist, Mark Calabria, to lead the agency.