Pub. 2 2013 Issue 3

16 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s L enders from across the state convened in Wichita March 7-8 to glean the newest information amidst this regulatory climate change. Dr. Ed Seifried, Seifried & Brew LLC, opened the conference with adynamic explanation of what we’ve just experienced and a preview of what he thinks is yet to come. Attendees received a well orchestrated presenta- tion on the risky behavior low interest rates have encouraged by chasing yields through investing in long term investments using short term loans. He continued with an explanation of how quantitative easing has added trillions of dollars of liquidity to the system, how that has increased the value of agricultural land, and the anticipated losses that may follow as the Fed- eral Reserve increases interest rates. Seifried introduced the forward guidance from the Federal Reserve that outlines when they will increase interest rates and how that balancing act may occur as they manage inflation costs in the process. Applauding the published opposition to QE3 by Esther George, President of the Kansas City Federal Reserve Bank, Seifried explained that George believes the economy requires a stop to the bond buying that is driving up costs of farm land, junk bonds and certain risky assets. He expects interest rates to rise in 2015 and de- veloped his theory that energy independence through domestic drilling is a solution to the broken U.S. economy. A bank panel consisting of Partick Fallon, Central Ba nk & Trust Co., Hutchinson , David Harris, RelianzBank, Wichita and Patricia Minard, Southwest National Bank, Wichita answered questions about how they have managed to grow business in an economic downturn. The issues discussed ranged from rela- tionships and sales goals to the use of social media. Four breakout sessions were well attended that included coach- ing on Negotiation Skills by Tom Page, Emprise Bank, Wichita; Eliminating the Fear of Making Consumer Loans by Bryan White , Rose Hill Bank, Wichita; Examining Changes Coming to the Secondary Market by Kurt Arehart , Genworth Mortgage Insurance and Terri Pogue , INTRUST Bank, Wichita; and Guaranteed Loans: SBA at Your Doorstep by Doug Clary , US SBA and Vanessa Klein , US SBA. Day two got off to a strong start with a powerful presentation by Terri Thomas, JD. Terri is the SVP of Legal services for KBA. Thomas discussed the multitude of lending compliance changes within Regulation Z. Ability to Repay, Qualified Mort - gages, Rural Underserved considerations, HOEPA, MLO Compensation and Appraisals were among the content dis- cussed. Terri will be offering a more in-depth discussion of these items in the Reg Z update sessions provided prior to Legal Update this year. The final session included a distinguished panel of bank regulators to include John Jilovec, FDIC; Kevin Moore, Federal Reserve Bank; Kurt Raney, OCC; and Ed Splichal, OSBC. They spoke to the risk posed by reputational missteps and the need to work to regain trust as an industry. There were several questions answered directed at the general soundness of the financial services industry in terms of asset quality and capital requirements. They also discussed some of the biggest challenges as the housing industry attempts to climb out of the losses suffered in the eastern part of the state and continued low demand for loans. Lenders From Across the State The Lender Banking Panel consisted of Patrick Fallon (Central Bank & Trust Co. Hutchinson), David Harris (ReliansBank, Wichita), and Patricia Minard.