Recently our Compliance Head (who I might add is excellent at her job) came into my office with a big smile on her face. I asked her what was on her mind and she said “after months of work between my department, loan officers and the loan operations team we got TRID figured out”. For those of you that don’t know what TRID is, it stands for TILA-RESPA Integrated Disclosure. This is the largest mandated change on how we make home ownership a reality since Dodd-Frank that buried community banks back in 2010. After she delivered that great news we did a high five and I thanked her and all the others involved in making this happen. I was truly happy for her and the bank. I went home that night with a feeling of accomplishment and proud of my staff. We made the nearly impossible… possible!
I don’t know what made me think of this but another thought came to my mind over the weekend. My lovely wife and I were vacationing on Mackinac Island in Michigan a few years ago. While we were waiting in line to take a tour of the island a lady came up to me with a big smile on her face, similar to our compliance officer’s, and said “hi Scott”. I was somewhat embarassed when she asked me “you have no idea who we are do you?” Well she was right… no idea. She proceeded to tell me that I made her and her husband their first mortgage loan which helped them buy their first home in Ankeny, Iowa in the mid 1980s. She told me that I should be happy to know that they have since moved up to different homes 3 times since we “took the risk with them” at that time. She gave me a hug and thanked me for making their dream come true for them and their family 30 years earlier. It made me feel really good inside and I told my wife Andrea… that is what being a community banker is all about.
Where have we gone wrong in America? When did we go from being overwhelmed with joy for a young family buying a home to be overwhelmed with joy about being able to adhere to 2 huge government regulations? I have to tell you, it made me sad. When did we decide that it is appropriate to punish everyone instead of the large banks and brokers that decided to make and sell no income or assets verification loans which we in the community banking field called “liar loans.” When did we go from helping our neighbors build strong families and businesses to instead by scared of messing up a regulation that helps no one and knowing that we will be hammered on if we make even an honest mistake?
Now I’m not one of those guys that thinks all government is bad. In fact I think some is really important. I do wonder though how our founding fathers of this great country would look at us today. I wonder if Franklin D. Roosevelt, while giving his speech on March 12, 1933 about the Banking bill that established the FDIC, would believe the direction we have now taken this. I have to believe all of them would be in disbelief as I was thinking back the past 30 years.
Scott Huedepohl is the President of Community State Bank, and has been a community banker for over 30 years.