SDBA eNews: May 7, 2015

In This Issue

SDBA President Featured in ABA Banking Journal

SDBA President Curt Everson was a guest columnist in the inaugural issue of the new ABA Banking Journal.

In his column "Taking on a GSE Gone Wild," Everson talks about the SDBA taking on  Farm Credit System in its Taxation Equality Awareness Campaign.

"For some in Congress, the truth of this 'GSE gone wild' may be inconvenient," Everson said. "The Farm Credit System is, no doubt, a grassroots force to be reckoned with. But so are America's hometown bankers. It's time for us all to go to work."

Read the full story. Content from the print magazine are also available online at the magazine's news site.

CFPB Updates Exam Procedures for TILA-RESPA Integration

The Consumer Financial Protection Bureau on Tuesday issued a set of revised examination procedures to provide guidance on how it will conduct compliance exams for the TILA-RESPA integrated disclosures taking effect Aug. 1.

The latest updates are to the bureau’s exam procedures for mortgage origination. View the revised procedures.

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

Early Bird Deadline Nearing for SDBA/NDBA Annual Convention

Attendees Encouraged to Dress in Costume for USO Party

There is still time to register to attend the 2015 SDBA/NDBA Annual Convention and save money. The early bird registration deadline is Friday, May 15.

This year's convention is June 7-9 at the Sioux Falls Convention Center/Sheraton Hotel in Sioux Falls. The theme is "Banker Boot Camp: SDBA/NDBA Officer Training."

Attendees are encouraged to bring a costume for the Monday night USO Party in the Exhibit Hall. Dress as a member of the military or a USO entertainer and be entered to win cash prizes for the best costumes.

Monday night will also feature an 85-foot-long Boot Camp Challenge. Those who want to to test their skills on the course should come prepared in their boot camp attire.

Tuesday evening is the formal closing banquet. Attendees who are past or present members of the military are encouraged to wear their military dress attire, if they so choose.

If anyone has questions on the events at this year's convention, contact the SDBA Office at 605.224.1653.

Two Bankers Appointed to Task Force to Study Elder Abuse

Two bankers have been appointed to serve on a 17-member Elder Abuse Task Force to study the prevalence and impact of elder abuse in South Dakota.

The bankers are SDBA Chairman-Elect Rick Rylance, Dacotah Bank, Rapid City, and Kristina Schaefer, First Bank & Trust, Sioux Falls. Also serving on the committee is retired banker Sen. Bruce Rampelberg, Rapid City.

The task force was created during the 2015 Legislative Session by SB 168. Members were appointed by Gov. Dennis Daugaard, Chief Justice David Gilbertson, Sen. Corey Brown- President Pro Tempore of the Senate, Rep. Dean Wink- Speaker of the House and Attorney General Marty Jackley.

Learn more.

FinCEN Fines Virtual Currency Company, Launches BSA Exams

Recent actions by the Financial Crimes Enforcement Network indicate that regulatory pressure on virtual currency companies is heating up. On Tuesday, FinCEN fined Ripple Labs and a subsidiary $700,000 for acting as a money services business but failing to implement and maintain an adequate anti-money laundering program -- the agency’s first action against a virtual currency business.

Ripple Labs runs a network that distributes a math-based virtual currency called XRP. According to FinCEN guidance, the Bank Secrecy Act requires certain virtual currency businesses to register as MSBs. FinCEN Director Jennifer Shasky Calvery discussed the penalty at an AML event in San Francisco yesterday, noting that “innovation is laudable but only as long as it does not unreasonably expose our financial system to tech-smart criminals eager to abuse the latest and most complex products.”

She also announced that FinCEN recently began a series of supervisory examinations of virtual currency firms, which “will help FinCEN determine whether virtual currency exchangers and administrators are meeting their compliance obligations under the applicable rules.” Read more about the enforcement action. Read the speech.

ABA-Backed Bill Would Delay Enforcement on TILA-RESPA Changes

Reps. Steve Pearce (R-N.M.) and Brad Sherman (D-Calif.) on Friday introduced H.R. 2213, which would provide lenders with a temporary safe harbor from enforcement of the rule integrating required mortgage disclosures under the Truth in Lending Act and the Real Estate Settlement Procedures Act.

ABA supports the bipartisan bill, which would protect lenders from private lawsuits and regulatory enforcement actions through Dec. 31, 2015, if they are making good faith efforts to comply with the rule. Noting the major challenges of implementing the new disclosures -- and the lack of opportunity to comply before Aug. 1 -- ABA has urged the CFPB to offer a “grace period” to allow the industry to ensure implementation goes as smoothly as possible.

Congressman Seeks GAO Audit of Farm Credit System

Rep. Marlin Stutzman (R-Ind.) on Friday wrote to the Government Accountability Office to request an audit and study of the Farm Credit System’s impact “on taxpayers, the agriculture community and the private banking industry.”

Specifically, Stutzman asked the GAO to examine how well the FCS is meeting its statutory obligations, with a focus on whether its financing of big telecom companies fits within statutory bounds. He also sought information on the FCS’ indirect lending programs, crop insurance sales and mineral rights holdings, as well as the effects on taxpayers of the FCS’ government-sponsored status. Read the letter.

Agencies Finalize Standards for State Appraisal Regulations

The federal financial agencies, along with the regulator of Fannie Mae and Freddie Mac,  last week finalized minimum requirements for state supervision of appraisal management companies. The rule was issued under the Dodd-Frank Act.

The rule does not require states to regulate AMCs, but if states do, AMCs must register in the state, use only state-certified or licensed appraisers for federally related transactions and ensure appraisals are independent. However, in states that do not establish an AMC regulatory structure within three years, non-federally regulated AMCs may not provide services for federally related transactions, such as loans backed by Fannie or Freddie.

Federally regulated AMCs will be required to meet the same standards as state-regulated companies, with the exception of a requirement for state registration. Read the final rule.