February 5, 2010
Filing Deadline Passes, Session Picks Up Speed
The filing deadline for candidates for public office in the 2010 election was Saturday, January 30, at midnight. Early in the week, many members of the Legislature were closely watching the Secretary of State’s website, as filings postmarked on Friday and Saturday were received and recorded.
Many current office holders were able to breathe a sigh of relief as they received confirmation throughout the week that they had no opponent in the upcoming primary and, in some cases, general, election. Notable among the various filings across the state was the decision of State Senator Mike Oliverio (D-Monongalia) to relinquish his State Senate seat and file for Congress, challenging incumbent Alan Mollohan in the Democratic primary. Six Republicans also filed in the Republican race for this seat in 2010.
Overdraft and NSF Fees
At the statehouse, the important event for bankers this week was a meeting Tuesday morning on proposed overdraft fee legislation among several bank representatives and the leadership of the House Banking & Insurance Committee, including Banking Chairman Clif Moore, Insurance Chairman Dave Perry, and Banking Vice Chairman Doug Reynolds. Banking Commissioner Sally Cline and members of her senior staff were present for the meeting as well.
The meeting was held at the request of the House Banking Chairman, who had indicated that members of his committee were very concerned about overdraft and NSF fees, and wanted to advance legislation that would limit the amount banks are able to charge for overdrafts and NSF fees. Bank representatives engaged in active discussion with the Committee leadership, explaining why such fees were fair and reasonable; that overdraft protection services were desired and valued by bank customers; that the financial services market is a very competitive place; that overdraft fees are a product of that competitive market; and why banks oppose any legislation that would seek to limit or curtail the ability of banks to charge overdraft or NSF fees.
In response to banks’ expression of opposition to any such legislation, Chairman Moore asked banks to propose some sort of progressive program aimed at improving financial literacy, or otherwise respond to the Chairman’s concerns about overdraft fees. Chairman Moore requested that banks provide a response to him by Thursday, February 11. The Bankers Joint Legislative Committee is actively reviewing its options and considering how to respond to Chairman Moore’s latest request and welcomes your input.
Foreclosure Mediation Act
Also of concern to bankers is HB 4259, which was introduced this week by Delegate Barbara Fleischauer (D-Monongalia). The bill would require mediation, if requested by the borrower, before foreclosure on a deed of trust lien. This bill has been single referenced to the House Judiciary Committee. There is a good chance that HB 4259 will advance in the House of Delegates. We will be keeping a close watch on the bill.
Fire Debris Bill
Bank representatives met this week with Jim Pitrolo, Governor Manchin’s Legislative Liaison, regarding SB 224, the “Fire Debris Bill.” Mr. Pitrolo requested that banks suspend any opposition to this bill and suggested that it would be a rare circumstance, at best, in which any bank lien would be adversely affected by the operation of the bill. Bank representatives continue to study the issue and appreciate the feedback provided by banks across the state on this bill. Your continued input is welcomed.
Division of Banking Legislation
Commissioner Cline’s bills received lots of attention this week. All six of her bills were introduced in the House, and we expect to see some of them taken up next week by the House Banking & Insurance Committee.
In the Senate, Commissioner Cline is revising SB 376, relating to changes to the deed of trust foreclosure reporting process. Upon further study, Commissioner Cline and her staff have become concerned that even the streamlined form of reporting contemplated by her bill would be too cumbersome. The bill is being modified to require simple posting in the form it is received from the counties of information by Commissioner Cline on the Division of Banking website.
SB 381 (modifying limitations on the ability of employees of the Division of Banking to obtain loans from state banks) was reported out of Senate Banking & Insurance and reported to the floor of the Senate, where it is expected to pass the Senate on Monday. SB 385 (defining and lowering the amount of collateral required to secure county deposits) was reported out of Senate Banking & Insurance, and sent to the Senate Government Organizations Committee.
Bills of Interest
As of Friday morning, a total of 849 bills have been introduced in the 2010 Regular Session. Below is a brief listing of bills of interest to bankers:
Senate Bills
SB 431 ~ Relating to residential mortgage brokers' licensing ~ Introduced 02/01/2010; to Banking and Insurance then Finance; to Subcommittee A
House Bills
HB 4259 ~ Foreclosure Mediation Act ~ Judiciary
HB 4261 ~ Relating to writing worthless checks ~ Judiciary
HB 4285 ~ Relating to the licensing of residential mortgage brokers, lenders and loan originators by the Division of Banking ~ Banking and Insurance then Judiciary
HB 4291 ~ Eliminating duplicitous criminal background investigations with both the West Virginia State Police and the Federal Bureau of Investigation ~ Banking and Insurance then Judiciary
HB 4294 ~ Requiring banks to provide a bond or pledge assets to secure county deposits under certain circumstances ~ Banking and Insurance then Judiciary
HB 4295 ~ Relating to the gathering and reporting of residential mortgage foreclosure data and statistics ~ Banking and Insurance then Judiciary
HB 4297 ~ Requiring regulated consumer lenders to provide notice of change in ownership or control to the West Virginia Division of Banking and clarifying that mortgage loan originators employed by such lenders must be registered or licensed ~ Banking and Insurance then Judiciary
HB 4308 ~ Relating to fraudulent, deceptive or misleading representations by debt collectors ~ Judiciary
HB 4318 ~ Preventing employees and officials of the Division of Banking from taking regulatory action involving financial institutions with whom they may have outstanding extensions of credit or pending applications ~ Banking and Insurance then Judiciary