Summer 2010 Newsletter

• One-size won’t fit U.S. banking industry
• Home Ownership is still the American Dream
• Mobile Banking
• Tulip Run attracts runners and walkers of all ages
• Action Roofing and Aurora Premier Storage are Bank of Holland’s picks for `Small Business of the Year’ awards
• Events Calendar

One-size won’t fit U.S. banking industry

As Congress approaches reform of our financial industry, it’s important to remember our history. When this country was founded it rejected monolithic rule and created a balanced, multi-branched government that has been successful for more than 200 years.

Our financial system reflects our rich diversity and is still best governed by multiple regulatory bodies that can address the varying concerns of Wall Street, large banks, and small community banks. Proponents of a single regulator fail to take into account the financial crisis was mainly instigated by financial institutions outside the scope of federal banking regulations working in partnership with Wall Street.

Going to a one-regulator system would end the twopronged national- and statechartered banking system we have, which recognizes that a one-size-fits all approach doesn’t work for all banking customers in a country as large as the United States.

A single regulator would also eliminate the role of the FDIC, which monitors banking risk and establishes appropriate riskbased deposit insurance premiums; and the Federal Reserve, which is constantly looking at the soundness of banks and gathering information that helps us develop monetary policies.

Community banks are concerned that with one regulator, the focus would be on large banks; that our customers would lose access to affordable credit; and that credit for small business development would decline. One of our goals is to contribute to local economies by supporting small businesses, and we are concerned a decline in affordable credit for this segment of our economy would undermine the backbone of our country.

We agree we need to close the gaps in regulation; protect consumers from abusive and improper practices; and streamline complicated and ineffective banking regulations. We also couldn’t agree more that consumers should understand banking products and services. Our experience shows that the best-informed customers bank with community banks.

Community bankers support the Obama administration’s proposal to maintain multiple federal regulators and the dual banking system. This is the best way to act responsibly, restore consumer confidence, and guarantee a balanced, healthy financial system for the future.

Mark L. Luderman
President/CEO

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Home Ownership is still the American Dream

Home ownership is often referred to as “the American Dream” and this June we’re celebrating National Homeownership Month by offering our Bank of Holland customers tips on home buying.

“A home is likely the biggest purchase you’ll ever make, and we are a great resource for information that can help you make wise decisions,” said Peter Ertl, Branch Manager, East Aurora. “We can help you determine your financing needs, put together a savings plan for buying a house, and pre-qualify you for a mortgage when you’re ready to buy.”

It’s important to learn as much as possible about buying a home before you even begin looking. Here are some tips to follow, Ertl said:

Know the sources and amounts of your monthly income and know your budget, including how much you spend on rent, utilities, entertainment, clothing, food and transportation.

Organize paperwork such as pay stubs, W-2 forms, tax returns and bank and investment statements.

Talk to us before you begin looking for a home. We can give you current mortgage rates and help you understand how that translates into monthly mortgage payments. This will help you shop for a home that fits your budget and shows sellers you are an educated homebuyer.

Check your credit report for accuracy. Credit reporting agencies must give you one free report annually. Access your credit at www.ftc.gov/ freereports or www.annualcreditreport.com.

Work with us to figure out how much you can borrow and which mortgage product is right for you. We can explain the options of mortgage products including rate adjustments, fees and other loan features so there are no surprises down the road.

Learn as much as you can by looking for classes on home buying and maintenance. There are free online educational tools at www.hud.gov.

Check with local state, city and county government agencies for special first-time-homebuyer loan or grant programs available to assist with down payment and closing costs.

Know your rights. Learn how the Fair Housing Act protects you. http://www.hud.gov/offices/fheo/FHLaws/yourrights.cfm

“Whether you are a first-time buyer, are moving to a new home or refinancing, you’ll be better prepared if you meet with one of our loan officers before making any commitments,” Ertl said. “We can give you the information you need to make a solid homeownership decision.”

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