SDBA eNews: September 3, 2015

In This Issue

Learn a New Routine for Finding Revenue

By adding two tasks to your daily management routine, you can help ensure that you identify revenue opportunities before they pass you by.

Deluxe will host the webinar "A New Routine for Finding Revenue" on Tuesday, Sept. 15. During this discussion-style executive webinar featuring Deluxe and its clients, you will learn how to:

  • Spot new business and niche opportunities as they are emerging
  • Maximize your interest margins on a daily basis
  • Find and eliminate pricing exceptions and waived fees
  • Establish healthy yields on all loan types
  • Add annual revenue totaling $100,000 or more

Learn more and register.

Earn CRA Credit by Preventing Elder Abuse

Each year hundreds of thousands of seniors are abused, neglected and exploited because they trust others to meet their most basic needs. When that trust is broken, it throws many seniors into isolation and despair.

The Senior Housing Crime Prevention Foundation provides the nationally-acclaimed Senior Crimestoppers program to protect low-to-moderate income seniors.This initiative is having a measurable impact against crime and abuse in America’s nursing homes, HUD communities and veterans homes.

Funding for this program comes exclusively from the banking industry and serves as a way for banks to earn valuable CRA loan, investment and service test credit while protecting society’s most vulnerable – our elderly. Learn more during a complimentary webinar on Tuesday, Sept. 15. Register for the webinar.

Question of the Week

Our bank does not use e-sign for any documents, so we have not been concerned about e-sign compliance, and this fact brings me to my question. Since we do not use e-sign, and since the right to waive an appraisal is a document that does not require a customer send a written/signed document informing the bank of the waiver, can our bank allow the customer to send an email to let us know they want to waive their right to receive the appraisal before closing?

Answer: The bank cannot allow the customer to send or receive documents pertaining to the loan, unless the bank is in compliance with all e-sign requirements. While it would seem like this would be a good way to document the fact that the customer is waiving their right to receive an appraisal, it is not permitted without e-sign compliance. Because of this specific question and thinking through this process, I feel compelled to remind you that the bank must also be compliant with e-sign requirements before you can email the appraisals to customers as well.

Learn more by attending a live Compliance Alliance demo on Tuesday, Sept. 8, 10-11 a.m. CDT.

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call 888.353.3933 or email.

Upcoming Events

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

Farmer Mac to Take Show on the Road

Are you prepared for the upcoming ag lending season--one likely to differ from those in the recent past? Are your borrowers acting to reduce their financial risk? If you want to provide your borrowers options, Farmer Mac has many time-tested solutions.

Learn more at one of Farmer Mac's upcoming Road Shows this fall. Plan to attend and meet the Farmer Mac underwriting and business development team, have lunch, visit with local lenders and join the conversation. Topics include how banks can capitalize on Farmer Mac products, a general outlook of the ag economy, and how to attract and retain farm and ranch customers through effective marketing and competitive loan offerings.

The Road Show will be in Mitchell, S.D., on Sept. 22 and Bismarck, N.D., on Sept. 21. Last year, more than 600 community bankers participated in the Road Shows. Learn more. Register to attend.

ABA Seeks Banker Letters on Overtime Proposal

ABA encourages bankers to write to the Department of Labor by Friday, Sept. 4, to explain the effects that DoL’s controversial overtime proposal will have on their banks, their customers and their hometowns. To help bankers, ABA last Friday distributed talking points and suggested ways of customizing the letters to make a strong case. ABA also encouraged bankers to share their letters with their lawmakers on Capitol Hill. View talking points and instructions. For more information, contact ABA’s Cris Naser.

'Action Update' Shows Progress on Policy Priorities

ABA advocacy helped generate more than 500 banker comment letters to the National Credit Union Administration on its business lending proposal, secure a delay in the implementation of the TILA-RESPA mortgage disclosures, and place several member bankers on the Fed’s new payments task forces. These and other ABA advocacy initiatives, part of ABA’s Agenda for America’s Hometown Banks, are included in ABA’s latest ‘Action Update.’

Other highlights in the Action Update include the ABA/state association-backed tailored regulation bill introduced by Rep. Scott Tipton (R-Colo.), which now has 22 sponsors; the FCC’s approval of ABA’s petition to exempt certain alerts from Telephone Consumer Protection Act limitations; and the status of several regulatory relief bills, many of which have cleared the House and been passed by the Senate Banking Committee. View ABA’s Action Update.

ABA Foundation, AARP Releases Infographic on Joint Bank Accounts

The ABA Foundation and AARP have produced an infographic to help seniors understand the risks of joint bank accounts, which are sometimes used to help seniors manage their finances by giving caregivers access to funds. Among the risks: a co-signee can become liable for taxes on the account, withdraw funds without the other co-signee’s consent or have funds taken if another co-signee is successfully sued for a debt.

“Setting up a joint account essentially removes the financial firewall between both parties,” said ABA SVP Corey Carlisle. “There are often safer alternatives available that will protect the assets of older customers, as well as those of financial caregivers.” These safer alternatives include “view only” accounts, financial powers of attorney and a “payable upon death” notice on the account.

The infographic is part of a collaboration between the ABA Foundation and AARP to protect older Americans from financial abuse and exploitation. The collaboration will result in educational resources, banking tools for caregivers and research about banks that are addressing fraud and exploitation issues. View the infographic.

ABA Urges CFPB to Fix Complaint Database Before Normalizing Data

Any efforts made by the Consumer Financial Protection Bureau to “normalize” data in its consumer complaints database -- that is, weighting it to account for differences that may distort interpretations of the raw data -- would be fruitless to consumers without efforts to ensure the accuracy and integrity of complaint information, ABA said in a comment letter on Monday. Attempting to normalize unverified complaints, such as those in the database currently, may actually further distort the facts should the underlying complaints be partially or wholly untrue, ABA added.

“[T]he Bureau’s decision to publish on its website complaint data and select consumer narratives erodes customer privacy, impairs the confidential nature of the exchange between customer and banker, compromises the supervisory process, and introduces unreliable and misleading information into the market,” ABA said. “Instead of fostering informed and responsible consumer choice, the bureau has become a purveyor of at best unverified, and potentially false, information.”

Responding to a CFPB request for information about “best practices” in normalizing data, ABA added that if the bureau does proceed with normalizing the database as it is currently set up, it should normalize only verifiable data points and work closely with the industry to determine appropriate metrics. For example, measuring against asset size versus transaction volume would generate different results for different kinds of financial institutions.

ABA has advocated aggressively with the bureau about the flaws in its consumer database and has offered suggestions for changes to the database that would improve the accuracy and utility of the information published and mitigate unfair and inaccurate reputational damage to the banking industry. Read the letter. For more information, contact ABA's Jonathan Thessin.

Hotel Deadline Extended for SDBA's 2015 Security Workshop

The deadline to reserve a reduced-rate hotel room for the SDBA's 2015 Security Workshop has been extended to Tuesday, Sept. 8.

The 2015 Security Workshop will be held Oct. 1 at the Clubhouse Hotel & Suites in Sioux Falls. Register for the workshop.

To reserve a hotel room, contact the Clubhouse at 605.361.8700 and request a room out of the “SD Bankers Association” block of rooms.