View from CBA August 8, 2014

Our thoughts and prayers are with our friends in the Aloha State as they prepare for impending hurricanes.

Fed Releases Senior Loan Officer Survey

The U.S. Federal Reserve this week released its July 2014 Senior Loan Officer Survey, which is comprised of respondents from up to 80 large domestic banks and 24 U.S. branches and agencies of foreign banks. The survey found about 40 percent of large banks reported easing credit standards for prime borrowers. Notably, only one large bank tightened standards in the survey. The survey also found demand for prime mortgages increased 49 percent, while surveyed banks found little increase in the demand for traditional mortgages and no change in demand for subprime mortgages. Interestingly, the survey included a question related to the recently implemented QM Rule. According to the report, “The majority of banks reported that the new rule has had no effect on the approval rate of prime conforming mortgages, in part because those loans qualify for a safe harbor under the exemption for loans that meet the underwriting criteria of the government-sponsored housing enterprises (GSEs).” Time will tell how the QM Rule and other regulations will effect mortgage lending.

Banks Continue to Invest in Mobile Banking

According to a recently released poll by American Banker, “more than two-thirds (68 percent) of bankers said they're spending more on the [mobile] channel this year than they did last year; one-fifth (20 percent) say they've increased spending by more than 50 percent.” It’s no secret consumers are demanding their financial institutions provide them the best in a mobile banking experience as they migrate to their phone and tablet, rather than a physical branch for their banking needs. Of course not all banks have the resources to meet these needs and smaller institutions will continue to lose consumers, as they shop elsewhere.

Meeting our Bankers

Early this week, I was in San Francisco, CA meeting with our Chairman Andy Harmening of Bank of the West, Chair-Elect Tim Wennes of Union Bank and Immediate Past Chair Bob Kottler of IBERIABANK. We spent time looking at the future of CBA, the Administration Committee’s 2015 goals, potential growth opportunities for our association, as well as investments we will be making to further position CBA as the voice of the retail banking industry. Stay tuned. Also while in San Francisco, CBA’s Education Department held an In-Bank training session for Wells Fargo. I was able to check-in with the 25 participating bankers, but a much more impressive guest stopped by shortly after, Wells Fargo CEOJohn Stumpf, who spoke to the group about today’s banking environment.

Also this week, CBA’s Director of Membership Liz Terry, and Senior Counsel Dave Pommerehn, were in Ohio visiting CBA members KeyBank and First Merit. At KeyBank they met with CBA Home Equity Committee Chair Cindy BalserTodd HammondBruce MurphyCatherine TothRichard Vonk,Marlene SharakErin CikraPaul Gibson, and Kristy Young, to discuss the pressing issues of regulatory Olympics and impending overdraft regulation. While at First Merit, Liz and Dave touched on the issues of the exam process and regulators, as well as the CFPB’s Debt Collection Survey with Jim BrocklehurstJim MurrayRon PaydoJudy SteinerTasha Strong, and Sean Triskett.

Accepting Speaker Proposals for CBA LIVE 2015

We are in search of innovative ideas for the retail banking industry's premier event, CBA LIVE.  We are committed to providing the highest quality and most relevant programming, CBA LIVE features 10 forums, targeted to specific areas of banking, including Auto Finance; CFPB; Community Reinvestment; Default Management; Deposits and Payments; Digital Channels; Fair and Responsible Banking; Home Equity Lending; Small Business Banking; and Student Lending.
So download the speaker proposal form today. The deadline for speaker proposals is August 29, 2014
CBA LIVE 2015 will be March 23 - 25 in Orlando, FL.

CBA Member News

We are proud to announce ID Analytics is CBA's 30th new associate member for FY 2014! They focus on consumer risk management with analytics and real-time insight into consumer behavior. Learn more about them here.


SunTrust has named Susan Somersille Johnson head of its marketing division. She was previously the Vice President of Global Marketing for NCR.
Lennie Fields, an 18-year employee and Assistant Branch Manager in Lafayette, LA for IBERIABANK, was recently installed as President of the Rotary Club of New Iberia.