Tag Archives: California

Is the FDIC’s Shift To De Novo Banking Real?

On May 1, 2017, the FDIC released an update to its guidance on the de novo banking – “Applying for Deposit Insurance – A Handbook for Organizers of De Novo Institutions.” The updated guidance purports to provide organizers with a “clear and transparent explanation of the path to obtaining deposit insurance.” This may be the FDIC’s response to the 2014 joint letter of the American Association of Bank Directors (AABD) and the Independent Community Bankers of America (ICBA) in which the AABD and the ICBA recommended that the FDIC issue a new Financial Institution Letter (FIL) to “to help dispel misconceptions and reaffirm the FDIC’s support for the formation of de novo banks.” These misconceptions relate to the uncertainty in the application process, the second-guessing of business plans for a de novo bank, capital requirements, examination schedules and the degree of regulatory oversight during the first seven years. The FDIC appears to be on a “get-out-the-message” campaign that de novo banking is back and the FDIC is poised to provide guidance on the process.
The banking group at Duane Morris has been involved in de-novo banking for over 40 years. We’ve advised on the de novo process and assisted in the formation of many banks throughout the Western United States and have represented these same banks throughout their life cycle. The recent recession which was sparked by excessive risk-taking by some financial institutions led to a shift in the FDIC’s regulatory philosophy towards more oversight and a period of consolidation. It appears that we are coming out of this period with a possible shift in the regulatory philosophy at the FDIC on de novo banking. To make this point, the FDIC has held industry outreach meetings in San Francisco, New York, Atlanta, and Dallas to inform industry participants about the FDIC’s application process and has planned additional outreach events on May 12, 2017, in Kansas City, Missouri, and May 31, 2017, in Chicago, Illinois.
It appears that we may be entering (finally) the cycle of de novo banks which would add to the health of the community banking industry. Small businesses may finally rejoice in the return of specialized relationship banking.

The FIL/Guidance can be found here:  https://www.fdic.gov/news/news/financial/2017/fil17017.pdf

What’s Shaking? A Conversation About Real Estate Finance, Mortgage Banking and Earthquakes!

Duane Morris LLP, CleanFund and California MBA will present “What’s Shaking? A Conversation About Real Estate Finance, Mortgage Banking and Earthquakes!” on Thursday, September 22, 2016, from 5:00 p.m. to 8:00 p.m. in the Duane Morris San Francisco office. This California MBA MCLE networking reception offers a ground-moving educational event featuring a discussion on financing solutions for mandatory seismic compliance.  The panel will also discuss the latest developments in real estate financing in the Bay Area and recent case law and regulatory issues impacting the mortgage banking industry in California. Attendees will have the opportunity to network with banking executives, real estate developers, property owners, lenders and in-house counsel from all over Northern California. One hour of General MCLE credit is pending.

The panelists for this program are Chris Robbins, Managing Director, CleanFund; Bob Bednarz, Loan Advisor, Guarantee Mortgage; and Terrance J. Evans, Partner, Duane Morris. Jolie-Anne S. Ansley, also a Partner at Duane Morris, will serve as program moderator.

If you are interested in attending this program, please visit the event registration page.