Just in case you think your advocacy voice is never heard, I’m here to tell you it is! Bear with me and I’ll explain.

Last week, the CFPB released its interim final rule easing mortgage restrictions on many small creditors by expanding the number of community banks eligible for escrow and balloon loan exemptions. This resulted from community banking relief provisions in the recently passed Highway Bill.

So, effective March 31, 2016, any small creditor (in our case, community banks having $2 billion or less in assets who originate fewer than 2,000 loans per year including portfolio loans) that makes a SINGLE loan in a rural or underserved area in the previous year can receive; (1) the portfolio balloon loan exception (including Qualified Mortgage safe harbor status) and (2) the higher priced loan escrow exemption for rural lenders. This is a big deal for ICBND members as community banks were only eligible for these exemptions previously if they operated “PREDOMINANTLY” (meaning more than 50% of mortgage loans) in rural or underserved areas.

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I hope this edition of Community Banker finds you enjoying a healthy and prosperous New Year. Before delving into the exciting things ahead of us in 2016, let’s look back a bit at what transpired since our last edition. In December, community bankers gained some regulatory relief through signage of the Highway Bill, of all things. Dogged advocacy by community bankers and community banking trade associations exempted community banks from burdensome regulations like Fed dividend cuts and redundant privacy notices while expanding exam cycles for certain highly rated banks and restoring cuts in crop insurance programs.

While we hoped for more expansive regulatory relief in 2015, the community banking provisions in the Highway Bill are a start. With 2016 being an election year, additional meaningful relief will be challenging, but we will continue to chip away at this regulatory behemoth.

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It’s hard to believe, but we’re already in the midst of the holiday season and 2016 is within arm’s reach. Rather than lament about the passing of time, I’d rather take some time and reflect on ICBND activities this past year.

I’m happy to say that your association had a very successful 2015. The 64th North Dakota Legislative Session consumed much of our attention the first several months of the year. ICBND members fared well this past session including property and income tax relief along with ICBND-sponsored legislation changing the Good Funds Law to specifically allow funding flexibility at closing for certain real property transactions. While the state session adjourned in the spring, our advocacy work is never done enhancing the political presence, influence and reputation of independent community banking at the local, state and national levels.

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One of the many classic quotes from the late Yogi Berra was - “you can see a lot just by observing”. Well, I’ve seen it all now. Not really, but let me explain. The end of October marks my first full year serving as your association president. It’s been my pleasure. So, I’ve now pretty much experienced first-hand a full annual cycle of ICBND activities, sessions and events including the 64th Assembly of the North Dakota Legislature. I’m proud of the work we do and the trust our members place in us to provide quality and timely products, services and advocacy. There’s always room to improve and that remains our focus moving forward.

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It’s hard to believe July is nearly over. It’s been a very busy spring and summer at ICBND and it’s been my pleasure to witness firsthand some of the fabulous education and development programs that were established before my time as your association president. The Emerging Leaders summer conference in Fargo included a tremendous program with Steve Scheel delivering the keynote address along with a tour of Scheels corporate campus. The success of the Scheels organization is rooted in customer service, understanding customers’ wants and needs, teamwork, and accountability. It reminded me very much of the independent community bankers in our state. The talent, enthusiasm and camaraderie of the Emerging Leaders group is impressive and infectious. It’s not too late to get involved in Emerging Leaders for 2015 as the fall session in Riverdale on September 18 is sure to be another great event.