SDBA eNews: October 2, 2014

In This Issue

SDBA To Offer Security & Risk Management Seminar

The SDBA will hold its Security & Risk Management Seminar on Oct. 21, 2014, at the Hilton Garden Inn in Sioux Falls.

The morning session will focus on conducting annual institution-wide security reviews, and the afternoon session will highlight the top 25 mistakes that a smart institution never makes.

Learn more and register.

FHA Updates Lender Handbook

The Federal Housing Administration has issued an updated handbook consolidating its guidance for lenders into a single resource.

The updated resource is distinct from FHA’s effort to update its servicing manual. Comments on servicing changes are due Oct. 17.

View the updated handbook.

SDBA Taxation Equality Awareness Campaign


Learn more and get involved.

Upcoming Events

View all SDBA events

Sponsorship Opportunity

Learn more about sponsoring the SDBA eNews.


Contact Alisa DeMers, SDBA, at 800. 726.7322 or via email.

We want you for Banker Boot Camp: SDBA/NDBA Basic Training. Save the date for the 2015 SDBA/NDBA Annual Convention June 7-9 at the Sioux Falls Convention Center/Sheraton Hotel in Sioux Falls, S.D. The 2015 theme is "Banker Boot Camp." Exhibit, sponsorship and advertising information will be available later this fall, with the full schedule and attendee registration to follow in 2015.

Application Deadline Extended for SDBA Job Opening

The SDBA through its for-profit subsidiary, South Dakota Bankers Insurance and Services (SDBIS), Inc., is looking for a highly-motivated, South Dakota-licensed property/casualty agent to assume primary sales and support responsibilities over several lines of business with SDBA member banks.

  • Fidelity Bond
  • Director and Officer Liability Policies
  • Property and Casualty Coverage for Owned and Leased Facilities and Vehicles
  • Cyber Liability, Flood Insurance, Credit Card Protection, etc.

The successful applicant will actively participate in developing and executing a strategy to expand current insurance opportunities by working directly with all SDBA member banks. 

The successful applicant must have a minimum of five years of property and casualty experience, plus commercial insurance and financial institution experience are strong positives. Training on financial liability products will be supplied by the SDBA. The position will be open until filled. See full job description.

FHLBs of Des Moines, Seattle Enter into Merger Agreement

The Federal Home Loan Bank of Des Moines and the Federal Home Loan Bank of Seattle  have entered into a definitive agreement to merge the two banks.The merger agreement has been unanimously approved by the boards of directors of both banks.

“The boards of directors of both institutions believe that a merger between FHLB Des Moines and FHLB Seattle would combine two complementary organizations with similar cultures, membership characteristics and solid financial positions,” said FHLB Des Moines President/CEO Dick Swanson. “The combined bank would remain a member-owned and member-centric cooperative, deeply focused on helping its members strengthen their institutions to better serve their customers and communities.”

Nearly 1,500 member financial institutions would benefit from a combined bank with increased economies of scale, greater risk diversification and an enhanced suite of products and services. The combined institution would serve 13 states and the U.S. Pacific territories.

The next step in the process is for the banks to submit a merger application to the Federal Housing Finance Agency. Following regulatory approval of the merger agreement, FHLB Des Moines and FHLB Seattle members will receive detailed information about the potential merger. The potential merger must be approved by the members of both banks through a voting process that is expected to take place in the first half of 2015. Read more.

ABA, Other Financial Trade Groups to Operate .bank Domain

ICANN, the international body that governs Internet domains, on Monday authorized fTLD Registry Services to operate the newly created top-level domain “.bank.” fTLD -- founded and operated by ABA, the Financial Services Roundtable and other industry organizations -- expects .bank to be available in 2015 for registration exclusively by verified banking industry participants.

“Our organizations took the lead on this to ensure that the banking industry -- not outsiders -- would operate .bank, and that only legitimate members of the banking community could have a .bank site,” said ABA President and CEO Frank Keating. “We took this on in order to protect the interests of our industry and preserve customers’ trust in banking.”

ABA and FSR established fTLD in 2012 when ICANN signaled that it would accept applicants to operate .bank and an array of new top-level domains being created to join the more familiar .com, .org and .net. fTLD will employ strict standards for registration and security. The new domain, for example, will help prevent users from being redirected to fake bank websites, help make it more difficult for criminals to create spoofed emails from a .bank website and provide a higher level of encryption.

More information is available at Once the .bank domain is available for registration, fTLD will have a website where banks will be guided through the registration process. Read ABA’s FAQs on .bank. For more information, contact ABA’s Doug Johnson.

Pentagon to Tighten Loan Rules for Service Members

The Defense Department on Monday proposed tightening restrictions on lending to service members. The DoD said that current restrictions in the Military Lending Act -- principally targeting tax refund anticipation loans, payday loans and car title loans -- leave too many loopholes, although ABA and other banking trade groups have warned that the DoD’s approach could increase costs and limit choices for service members and their families.

The proposed rule would extend the terms of the MLA to all types of credit that is subject to the Truth in Lending Act, with particular implications for credit cards, lines of credit, installment loans and deposit advances offered to service members. The rule would not cover home mortgages and money purchase loans for cars.

The DoD proposed allowing creditors to exclude “bona fide fees that are reasonable and customary” from the MLA’s 36 percent APR cap. It also proposed to allow creditors to verify a loan applicant’s military status through the DoD’s online database, rather than relying on the borrower’s representation.

The ABA on Wednesday issued a staff analysis that covers how the 36 percent maximum military APR would be calculated and how covered borrowers would be identified, and it discusses disclosures, penalties and enforcement. Comments are due by Nov. 28.

Amplify Adds Data Breach Presentation

Amplify has posted a new tool to help bankers connect with their communities: a customizable PowerPoint presentation and talking points that help bankers explain how data breaches happen and how banks protect their customers. The presentation is well-suited for speeches to local business groups and audiences of consumers.

The presentation emphasizes that banks are the safest places to keep money and argues that retailers need to do more to beef up their data security and contribute to the security of the payments system. It also includes data security tips for consumers.

The talking points and PowerPoint presentation are exclusively available at under the “Speak to a Local Group” section. The program is accessible to all bankers, not just ABA members.