Regulators Extend Compliance
Deadline for Internet Gambling Rule
The Federal Reserve and Treasury Department granted the banking industry significant relief on Friday when they announced a six-month extension of the deadline – from Dec. 1 to June 1, 2010 -- for complying with rules implementing the Unlawful Internet Gambling Enforcement Act of 2006. The announcement came after ABA, lawmakers and others wrote to the agencies urging them to use their authority to postpone the compliance date by one year. In a Nov. 4 letter, ABA said the final rule would expose banks to unwarranted liabilities and lead to a compliance trap that will damage the competitiveness of the American payments system. A delay in the rule would give Congress more time to revisit the flawed act, ABA said. In announcing their decision, the agencies acknowledged the compliance challenges banks are facing and noted congressional interest in revising the law. House Financial Services Committee Chairman Barney Frank (D-Mass.), who has long objected to the rule and has scheduled a Dec. 3 hearing on legislation to correct the gambling law, said the compliance delay will give Congress time to act on his bill.  Read more. Read ABA's letter. u

Proposal Would Raise Lenders' Net-Worth Requirement
The Federal Housing Administration this week proposed changes to reduce the risk to its single-family insurance fund. The proposal would raise the minimum-net-worth requirement for FHA-approved lenders from the current $250,000 to $1 million within the first year, and to $2.5 million within three years. Under the proposal, lenders would assume liability for all loans they originate and underwrite, and the FHA would no longer approve mortgage brokers’ credentials -- instead passing oversight of mortgage brokers to lenders. There will be a 30-day comment period following the proposal’s publication in the Federal Register. Read more. u

Panel Approves Federal Insurance Office Act
The House Financial Services Committee yesterday passed by voice vote a bill (H.R. 2609) that would create a Federal Insurance Office within the Treasury Department to advise the Treasury secretary on domestic and international insurance issues -- excluding health insurance -- and to monitor the insurance industry and insurers for threats to the overall financial system. Prior to passage, the panel approved an amendment offered by Reps. Melissa Bean (D-Ill.) and Ed Royce (R-Calif.) that would require the office to conduct a study on ways to modernize and improve insurance regulation within the United States. ABA’s American Bankers Insurance Association affiliate and seven other trade groups sent a letter to the committee supporting the amendment. Read the bill. Read the trade groups’ letter. u

House to Begin Considering
Combined Reg Reform Bill Next Week
The House next Wednesday is scheduled to begin consideration of a massive regulatory reform bill (H.R. 4173) that combines committee-approved legislation on systemic risk, the Consumer Financial Protection Agency, derivatives, the Federal Insurance Office and investor protection. House Financial Services Committee Chairman Barney Frank (D-Mass.) said he expects a final House vote on the legislative package -- dubbed the Wall Street Reform and Consumer Protection Act -- by the end of next week. Read the bill. u

Progressive Financial Services To Expand in Aberdeen
The South Dakota Governor’s Office of Economic Development and Aberdeen Development Corporation announced Wednesday that Progressive Financial Services, Inc., (PFS) in Aberdeen is expanding. The Philadelphia-based, top-20 collection company will create 75 new jobs, increasing its total employment to 150. “Progressive Financial Services is exactly the kind of company any state would be proud to have as a corporate citizen,” Gov. Mike Rounds said. “Since the company first came to South Dakota four years ago, it has exceeded its growth expectations. Progressive continues to excel, due in part to South Dakota’s pro-business climate and excellent workforce.” Read more. u

SD Bank Salary, Fringe Benefit Survey Now Available
The 2009 South Dakota Bank Salary and Fringe Benefit Survey is now available. Each year, Eide Bailly LLP conducts a survey of South Dakota banks to obtain valuable information on compensation and fringe benefit programs in banking. This 66-page summarization contains information from 16 participating banks on 45 common positions in a community bank. The summarization will provide you with reliable information to compare your bank’s compensation and fringe benefit programs with other comparable banks. The cost for the survey is $300 for members or $500 for non-members. Banks who participated in the survey received a complimentary copy. Order a copy of the survey. u