HB 5313 is moving in House committee, but MBA lobbyists were successful in amending the bill to keep bank–employed appraisers from being removed from Michigan’s Board of Real Estate Appraisers. Current law says that one of the five members of the board must be an appraiser employed by a bank or a credit union. The original bill would have struck that language. The MBA is working to have an amendment that would retain the requirement, but make it suggestive instead of mandatory.

HB 5640, currently in committee, creates the Property Assessed Clean Energy Act (PACE). This legislation, if enacted, would allow local governments to make loans to its residential and commercial residents for the purposes of energy efficiency improvements or installation of renewable energy systems. Repayment of the loan would be through property tax assessments and would be collected in the same manner as other property tax and assessment liens.

This would mean that the PACE lien would hold priority status over first mortgage holders. As real estate values plummet and mortgage investors have been temporarily replaced by the federal treasury, changes to remove the mortgage holder from priority position in the lien hierarchy will prove to be destructive to a Michigan economy in doubt.

In the coming weeks, the U.S. Senate will consider one of the most important pieces of legislation in the history of the banking industry. ABA is inviting all bankers to participate in one of three free regional telephone briefings on Wednesday, February 17, for an update on the massive financial regulatory reform bill. It’s an opportunity for you to learn the latest information and ask questions. These will be half-hour briefings, conducted by Steve Wilson, ABA Chairman-Elect and Chairman & CEO of LCNB National Bank of Lebanon, Ohio, and ABA CEO Ed Yingling. We strongly urge you to participate to better understand this important legislation, which will affect every bank in the country.

4:00-4:30 p.m. EST: http://online.krm.com/iebms/reg/reg_p1_form.aspx?oc=10&ct=0018458&eventid=16652

It has never been more important for bankers to speak directly to their members of Congress about issues facing the banking industry.

The MBA will join the upcoming American Bankers Association in Washington, D.C. March 16-18, 2010, for the third annual Government Relations Summit. We invite and encourage all Michigan bankers to join. We will meet with Michigan members of Congress and our U.S. Senators and banking regulators and participate in industry discussions regarding emerging banking legislation.

Last year, Michigan bankers joined this massive expression of grassroots banking as 800 bankers from across the nation called upon their elected officials to discuss the challenges facing our communities, customers and banks. We expect another robust turnout with the most substantial rewrites to banking laws in decades pending in Congress.

Bankers participating should make their own travel plans and register for the program directly through the ABA. We recommend the flight on Tuesday, March 16, Delta Flight # 7328, Detroit Metro (DTW) to Baltimore (BWI) departing Detroit 1:55 p.m. and arriving at Baltimore 3:38 p.m. Thursday, March 18, Delta Flight # 7337, Baltimore to Detroit departing Baltimore at 6:55 p.m. and arriving in Detroit at 8:41 p.m. We find these flights are less expensive than Reagan. The MBA will offer group transportation round trip for these flights to and from D.C. Contact the MBA at 517-485-3600 for details.

Last week the President announced plans to make up to $30 billion available nationally through lenders to increase business lending. The program, the Small Business Lending Fund, is targeted for banks under $10 billion is assets. The plan is intended to avoid some of the difficulties of the TARP and the CPP by allowing banks to borrow money from the Treasury at a dividend rate as low as 1 percent if they use the cash to make more small business loans this year than they did in 2009.

In a complementary move, Michigan Senator Carl Levin and Congressman Sander Levin are both advancing a measure to assist manufacturers in restoring their credit conditions to expand outputs and employment. Based on a model crafted between the MBA and the MEDC over the past two years, the Manufacturing Modernization and Diversification Act would provide assistance to manufacturers with either collateral or cash-flow challenges impeding their ability to borrow.

The plan would use federal dollars loaned through a revolving fund administered by an entity in each state. These funds would provide collateral assistance and/or loan participation with and through banks and other lenders to make otherwise unbankable deals possible. In both cases the fund would take a minority position. Banks would make the credit decisions and administer the loans. The fee and interest schedules would target those firms and loans that were otherwise viable, but impaired due to the impact of the recent economy.

MBA representatives explained to our elected officials how a manufacturer with new orders in hand could still face credit challenges due to the impact on cash and their collateral values over recent years. This program is designed to address this issue.

Last week the MBA along with the Michigan Manufacturers Association (MMA), hosted a speed banking session in Grand Rapids. Seven manufacturers and seven banks with Michigan assets ranging from $445 million to $32 billion participated in one-on-one meetings with prospective customers. The speed banking program is an effort to connect manufacturers and banks. During the session a banker meets with a different manufacturer every 30 minutes. The manufacturers come prepared with a short summary of their current needs and pertinent information a banker would need to evaluate a credit option. The manufacturers appreciate the opportunity for feedback from the bank regarding their credit needs and the bank looks forward to a future business relationship.

In the recent Supreme Court ruling Citizens United v FEC, the Court struck portions of McCain-Feingold and related state laws across the nation. It ruled that all organizations may make direct independent expenditures in candidate and issue campaigns.

Much misinformation has been reported about this decision and what it means. Currently 28 states allow corporate contributions to candidates but even with the current decision, Michigan is not among those states.

* The court ruled that all organizations may make direct independent expenditures in candidate and issue campaigns.
* The decision DID NOT AFFECT bans on corporate contributions to candidates, candidate committees or political action committees (PACs).
* Under Michigan laws and federal laws corporations could not, and still cannot legally give to a candidate, candidate committee or PAC.
* All members are reminded that a corporate contribution to a candidate, candidate committee or PAC remains illegal and may be a felony.
* It also remains illegal for a corporation to reimburse an individual for his or her personal contributions.

Don Radde, Horizon Bank, and MBA staff met with State Representative John Proos (R, St. Joseph). Participants discussed pcoming job plans that the House Republican Caucus was working on. In addition, they heard a great deal about Proos’ effort to become the next State Senator from St. Joseph.

Congressman Gary Peters (D, Bloomfield Township) met with eight bankers and MBA staff to discuss recent happening in Washington, D.C. The meeting was an excellent opportunity for MBA members to impress on Congressman Peters the struggles community banks have when trying to increase lending capital while still making sure they have positive examinations.

February 11 - Sandro Dinello, Flagstar Bank, is hosting a 2:00 p.m.meeting with Mike Shirkey, a Republican candidate for the State House of Representatives from the Jackson area.

February 15 - The MBA is hosting a meeting with State Representative Arlan Meekof (R, West Olive)at the Alpine Rose Restaurant in Holland at 11:00 a.m.

March 5 - The MBA is hosting a meeting with newly elected State Senator Mike Nofs (R, Battle Creek) at The Hunt Club in Battle Creek at 11:30 a.m.

Please contact David Worthams if you’re interested in being a part of these meetings, or are interested in hosting a future meeting.

Free online training and a chance to win one of four 1,000 donations are available to banks that participate in the 14th annual Teach Children to Save program. TCTS Registration.

• $1,000 Donation
  The ABA will award four ABA member bankers with a $1,000 donation for a local school or youth group.
• Free Webinar Training
  The online training sessions will cover steps for planning an event, tips on using the Teach Children to Save resource kit and how to contact schools and other groups. Participation is free, but registration is required. View Webinar times and register.

The Federal Reserve approved final rules that implement provisions of the 2009 Credit Card Act effective Feb. 22, 2010. Under the new rule, rate increases are prohibited during the first year after an account is opened as well as rate increases that apply to an existing credit card balance.

Credit cards may not be issued to consumers under age 21 unless they can make the required payments or obtain the signature of a parent or other co-signer who can do so. The rule requires a consumer’s consent before charging fees for transactions that exceed the credit limit. It limits high fees associated with subprime credit cards, bans the use of the “two-cycle” billing method to impose interest charges and prohibits the allocation of payments in ways that maximize interest charges.

The Federal Reserve has issued new credit card rules pursuant to the CARD Act of 2009. Below are a few items that might help you with any press inquiries you may receive. As always, please feel free to refer reporter calls to ABA.

Fact Sheet: The Credit Card Lending Market

A proposed new nickel mine outside of Ishpeming is the target of a ballot initiative by Detroit-area environmental activists. 

The petition-drive aimed at banning most types of mining in Michigan, especially in the Upper Peninsula, would have a negative impact on job creation and business growth across the state.

The MBA and Michigan Chamber are among a growing list of organizations opposed to the statutory initiative, including all members of the State Legislature from the Upper Peninsula, local chambers of commerce executives and business leaders in the U.P, such as the Lake Superior Community Partnership and local governmental officials in the U.P., including the U.P. Association of County Commissions.