Commissioner's Corner
By: J. Thomas Thull
Wow! I've been with the Department for six months; and what a six months it has been. I've had the opportunity to travel to Washington D.C. to not only meet our Congressional delegation, but also Chairman Bernanke at the Federal Reserve and Chairman Bair at the FDIC. I have attended functions across the country sponsored by the Federal Reserve Bank, Kansas Bankers Association, Community Bankers Association, and Conference of State Bank Supervisors (CSBS) and have found everyone to be courteous, knowledgeable, and professional.
During my time here, the staff, in addition to their normal duties, has dealt with several issues, including, but not limited to: the sub-prime mortgage crisis; national mortgage licensing database; purchase and installation of new database software at our agency; purchase and installation of a secure email system; the 2009 budget submission; testimony on a few issues at the Statehouse; and a booth at the state fair. I will touch on each of these areas briefly.
The Department just adopted the Guidance on Nontraditional Mortgage Product Risks issued by CSBS and the American Association of Residential Mortgage Regulators (AARMR); and the Statement on Subprime Mortgage Lending, issued by CSBS, AARMR, and the National Association of Consumer Credit Administrators. I will chair a study group to assess mortgage fraud and subprime lending in Kansas and its effects on Kansas consumers. I have signed a letter of intent to participate in a National Mortgage Licensing database being developed by CSBS and AARMR. The exact date of our participation is unknown as we currently have a licensing process that serves our agency well.
We are in the process of building a new database system for the entire agency. The new system will replace the four legacy licensing and data management systems that support agency functions. The vendor for our system is CAVU Corporation of North Carolina.
You will soon be receiving information on how to utilize our secure email system. We have developed a brochure to walk you through the registration and log-in procedures. We intend to utilize this system for confidential communication prior to and during our examinations as well as for other emails containing secure information.
Annually, the agency has a booth at the state fair where members of our Consumer and Mortgage Lending Division meet with Kansas consumers and provide helpful information. I attended the fair for one day and spent time visiting with folks that stopped by our booth. It is a productive outreach for our agency that we plan to continue in the future.
Our annual budget for fiscal year 2009 was submitted to the Governor. The agency's budget for this fiscal year is approximately $8.5 million. More than half of that amount is for Banking and Trust Division expenditures. We feel we have adequate funding to support our examination goal and to adequately provide for suitable equipment and training for our staff.
Before I close this article, I do want to mention our continued association with CSBS. We are active members in this organization, and Judi Stork, our Deputy Bank Commissioner, serves as a board member representing District IV, the nine-state district of which we are a member. We are strong supporters of CSBS and the work they do for state chartered institutions. Prior to the end of this year, you will be receiving information from me regarding your bank's membership in CSBS. I hope you will give strong consideration to joining this association and review the benefits such membership would provide.
