SDBA eNews: November 19, 2015

In This Issue

FFIEC Management Guidance Update: Dec. 4

Regulators continue to demonstrate activity around information technology guidance to provide further assistance in addressing the growing cybersecurity threat. The FFIEC recently restructured the IT Management Booklet and integrated some new guidance. 

Join GSB and Secure Banking Solutions for the online seminar "FFIEC Management Guidance Update" on Dec. 4 for an overview of the new changes and how to begin incorporating them into your institution. The presenter is Chad Knutson, a senior information security consultant at SBS.

The hour-long seminar will begin at 10 a.m. CT. The cost is $129. Learn more. Register online.

Hacker Hour: Mobile Device Security: Nov. 24

A BYOD environment raises security concerns that sensitive information could be leaked and an expensive security incident could follow. Although you cannot reduce risk completely, there are some things that you can do to help secure mobile devices.

Join Secure Banking Solutions for Hacker Hour: Mobile Device Security as they discuss mobile device security and how SBS can help. This free webinar will begin at 3 p.m. CT. Register now.

Question of the Week

For a zero tolerance item, if we charge less on the closing disclosure than what was disclosed on the loan estimate, do we still meet the good faith standard or are we somehow out of tolerance?

Answer: The bank can charge a consumer less for a service on the closing disclosure than what was disclosed on the loan estimate and still meet the good faith standards.

The CFPB Compliance Guide, page 35 specifically states:…a loan estimate is considered to be in good faith if the creditor charges the consumer less than the amount disclosed on the loan estimate, without regard to any tolerance limitations.

The only requirement is that loan estimate fees be disclosed using the best information available and be determined in good faith. In other words, it is not permissible to intentionally “over disclose” on the loan estimate to avoid tolerance issues.

Learn more by attending one of our live demos:

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.

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

House Passes ABA-Advocated Portfolio Lending Bill

By a bipartisan 255-174 vote, the House yesterday passed H.R. 1210, which would designate all mortgage loans that institutions originate and hold in portfolio as Qualified Mortgages and thus subject to the safe harbor provisions of the Ability-to-Repay Rule. The bill is a signature part of ABA’s Agenda for America’s Hometown Banks and was also strongly advocated by the state bankers associations, including the SDBA.

“It’s clear that new regulatory requirements have restrained mortgage lending and have made it particularly difficult for some creditworthy borrowers to obtain a home loan,” said ABA EVP James Ballentine. “This legislation is a common-sense approach that will help borrowers gain access to some of the lowest-risk mortgage products offered by banks."

ABA Warns NCUA on Field of Membership Overreach

As the National Credit Union Administration prepares to vote today on a proposal that would substantially loosen credit unions’ field of membership limitations, ABA urged NCUA to stand up the credit union lobby and follow the law.

ABA expressed concern about NCUA Vice Chairman Rick Metsger’s description of the anticipated proposal as a “game changer,” which ABA’s Rob Nichols called “especially troubling” because “[t]he credit union lobby has brazenly requested that NCUA gut limitations established by Congress to make credit union membership meaningful… We are very concerned tomorrow’s proposal will enable credit unions, especially the largest credit unions, to move even further away from the narrow common bonds that define their missions.”

Nichols called on NCUA to “demonstrate that it is not a cheerleader for the industry it is charged with supervising,” adding that “[c]hanges that exceed NCUA’s statutory authority or that alter the competitive dynamic between banks and credit unions will be vigorously opposed, using all available tools.” Read ABA's letter.

ABA-Sought Oversight Hearing on Farm Credit Administration Expected

Though not yet officially announced, the House Agriculture Committee is expected to hold a long-overdue oversight hearing on the Farm Credit Administration on Dec. 2. The hearings would cap a three-year effort by ABA, state associations and bankers to see the Farm Credit System’s regulator forced to answer questions about the system’s mission drift, sprawling growth and risk to taxpayers.

In preparation for the hearing (which remains subject to change), ABA has published a Reform Farm Credit Communications Toolkit and is encouraging bankers to make use of it. Resources -- which include sample emails, tweets, an op-ed and more -- are aimed at raising awareness of the “waste, mismanagement and unfair tax advantages granted to the FCS at the expense of farm banks,” the toolkit explains. Browse the toolkit.

ABA Urges FFIEC to Create Streamlined Call Report for Smaller Banks

ABA and The Clearing House on Tuesday expressed support for the Federal Financial Institutions Examination Council’s proposed improvements to the Call Report, and they strongly encouraged the council to pursue its idea of creating a more streamlined Call Report for smaller institutions.

“Given the diversity in bank business models, there is ample scope and necessity for tailoring Call Report requirements to the conditions of the various banks,” the groups said in a comment letter.

They also urged the FFIEC to establish an industry advisory committee to provide guidance on issues related to FFIEC reports and to work to ensure other required forms are updated simultaneously. In addition, FFIEC should allow sufficient time for institutions to implement reporting changes, release final instruction updates at least a quarter before implementation and provide ongoing training, they said. Read the letter.

ABA Facilitates Mobile Alerts by Wireless Carrier

ABA worked with Verizon Communications, Inc. to ensure that banks would be able to send data breach notifications, suspicious activity alerts and other time-sensitive messages to their customers over Verizon’s network, without the bank having first to obtain the prior express consent of the customer.

In July, the Federal Communications Commission released an order that granted four petitions made by ABA to exempt from the Telephone Consumer Protection Act’s prior express consent requirements certain time-sensitive texts and calls that banks make to their customers. ABA worked with Verizon to clarify the scope of the FCC’s order and to facilitate Verizon’s transmission of these messages when requested by a bank. Read the FCC’s order. For more information, contact ABA's Jonathan Thessin.

SDBA 2016 Media Kit Now Available

The South Dakota Bankers Association (SDBA) is the premier avenue for businesses to target their marketing message to the top decision makers in South Dakota’s financial services industry.

There is no better way to get your products or services in front of South Dakota bankers than to advertise in the SDBA’s South Dakota Banker Magazine or sponsor the SDBA eNews. Learn about advertising and marketing opportunities available for 2016 in the SDBA's 2016 Media Kit.

The kit contains information on advertising in South Dakota Banker Magazine, sponsoring the SDBA eNews, and other advertising and marketing opportunities available with the SDBA throughout the year. Learn more.