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Stimulus Plan Includes Many ICBA Proposals
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In a statement, ICBA said it is pleased several ICBA
policy recommendations for economic recovery were included in the
economic stimulus package approved by Congress on Friday. "The
continued vitality and strength of our country's community banks in the
midst of this crisis proves that community banks are the part of our
financial fabric that still works, and these measures will help our
nation's more than 8,000 community banks continue to serve their
customers in cities and towns throughout America," said ICBA
Chairman Cynthia Blankenship.
ICBA proposals such as an expanded first-time homebuyer tax credit and
increased SBA government guarantee were included in the plan. For a
complete list of the ICBA proposals included in the package, read
ICBA's updated Proposals for Economic Recovery.
The legislation also raises the maximum GSE and FHA mortgage loan limit
to the 2008 limit of $729,750 in higher-cost areas. This increase is
only for 2009. After that, the maximum loan size reverts to $625,500.
For 2009, the bill also raises the FHA reverse mortgage national loan
limit from $417,000 to $625,500.
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ICBA to Treasury: No TARP Funds for Credit Unions
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ICBA urged Treasury Secretary Timothy Geithner to ensure
that only taxpaying financial institutions have access to the TARP or
the Capital Assistance Program. In a letter to Geithner, ICBA
President and CEO Cam Fine expressed concerns about the possible
participation of credit unions in the programs following the bailout of
U.S. Central Federal Credit Union by the National Credit Union
Administration and the subsequent losses to the National Credit Union
Share Insurance Fund.
"It would
be grossly unfair to allow non-taxpaying institutions such as credit
unions to access TARP or CAP thus increasing the unfair competitive
advantage credit unions already have over taxpaying community
banks," Fine writes.
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Fed Governor: Foreclosure
Mitigation Critical
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Federal Reserve Governor Elizabeth Duke said more
government action is needed to modify troubled mortgage loans to
prevent foreclosures. Duke, the first member of the Fed's Board of
Governors with community banking experience, said policies should
directly address the foreclosure problem.
"As long as uncertainty exists as to the scope and terms of the
additional steps that likely will be offered, borrowers, lenders, and
servicers will continue to hold out in hope of securing a better
deal," Duke said.
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ICBA to HUD: Review Disclosure Rule
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ICBA urged Department of Housing and Urban Development
Secretary Shaun Donovan to withdraw the RESPA rule published Nov. 17,
2008, and coordinate efforts with the Federal Reserve under the Truth
in Lending Act. In a joint letter, ICBA
recommended reevaluating parts of the rule that require disclosures for
mortgage customers before the regulations take effect Jan. 1, 2010.
In the letter,
ICBA says disclosures under RESPA and TILA should be complementary to
avoid unnecessary costs. In addition, the Mortgage Disclosure
Improvement Act, which takes effect July 1, should be coordinated with
these laws.
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