SDBA eNews: January 21, 2016

In This Issue

FDIC to Host Seminars on Deposit Insurance 

 
The FDIC announced Tuesday that it will conduct six free, live seminars throughout 2016 providing a comprehensive overview of FDIC insurance coverage. Each session will include a Q&A session with FDIC subject matter experts. Advance registration is required.

The FDIC also offers three pre-recorded deposit insurance coverage seminars for bankers, which are available on the agency’s YouTube channel. Read more.


Scholarship Available for GSB HR Management School

 
One South Dakota banker will be awarded a scholarship to attend the Graduate School of Banking at the University of Wisconsin-Madison's Human Resource Management School.

The school, which will be held April 10-15, is designed specifically for HR professionals in the financial industry and addresses today’s most critical HR issues. One South Dakota banker will receive a $925 discount on registration.

The deadline to apply for the scholarship is Feb. 12.


Question of the Week

I know the LE now replaces the right to receive an appraisal form. Do we need to have a form that the customer signs acknowledging?

Answer: There is no requirement that your customer sign or acknowledge receipt of the appraisal disclosure notice contained in the Other Considerations section of the LE. The appraisal notice contained in the LE satisfies the right to receive an appraisal notice requirements for higher-priced mortgage loans (HPML) under Regulation Z and for loans secured by a first lien on a dwelling under Regulation B.

Neither the Reg Z HMPL provisions or the Reg B provisions require that the appraisal notice be signed by the customer. That being said, separate appraisal notices (not built into the TRID disclosures) often included signature lines to demonstrate compliance but again, that signature is not a regulatory requirement.

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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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Questions/Comments

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

ABA Seeks Letters on Credit Union Membership Proposal by Feb. 8


ABA continues calling on all bankers to send personalized comments to the National Credit Union Administration opposing the agency’s plan to expand the already loose fields of membership from which federal credit unions can draw their customers.

Under NCUA’s wide-ranging proposal, FCUs would be able to apply to serve combined statistical areas, which are larger than metropolitan areas; areas contiguous to their existing core-based statistical areas; and entire congressional districts, including at-large districts that encompass entire states. NCUA would also facilitate easier conversions to community charters, easier expansion of fields of membership in rural areas and expansion of FOMs for “service facilities.”

ABA has provided a convenient online template for customized letters, as well as a set of key points to help bankers make the case against the proposal. Comments are due by Monday, Feb. 8.


ABA, ICBA Ask Congress to Rein In 'Out-of-Control' CU Regulator

 
In a letter to congressional leadership yesterday, ABA and the Independent Community Bankers of America (ICBA) spoke out against the National Credit Union Administration's (NCUA’s) proposal to loosen its field of membership restrictions. The groups warned that the proposed expansion would effectively allow credit unions to operate as tax-exempt banks and have significant, wide-reaching policy implications.

“Radical expansion of credit unions poses a major threat to the viability of taxpaying community banks from coast to coast, while adding to the federal deficit in lost tax revenue,” the letter said. “We urge Congress to aggressively exercise its oversight function and reorient this out-of-control agency.”

Under the NCUA proposal, credit unions would be able to serve “local” and “well-defined” areas that stretch the definition of both terms beyond reason--including labeling whole states as local areas in some cases--and open the door for credit unions to redline underserved urban cores in favor of wealthy suburbs.

“These quasi-legislative actions are being pursued by unelected bureaucrats because, in the words of NCUA’s vice chairman, ‘Congress is deadlocked’ on these issues,” ABA and ICBA said. “NCUA is stealing the province of the legislature, in full view and without apology.” Read the letter.


Feb. 1 Is Deadline for Military Lending Database Access

 
The new Military Lending Act regulations--which require that banks determine military status for applicants applying for consumer credit that is not a mortgage or purchase money loan--provide a compliance safe harbor for lenders who verify military status through the Department of Defense database or a nationwide credit bureau.

Methods covered in the safe harbor include checking with the Pentagon’s Defense Manpower Data Center database through its website, which will allow single or batched MLA verification requests with a 24-hour turnaround or--for a quicker response--directly accessing the DMDC database. However, because of limited resources, the DoD will initially determine which creditors have direct access based on creditors’ volume.

As a result, by Monday, Feb. 1, bankers must email [email protected] and advise DoD that the bank is interested in direct access to the DMDC database to determine military status for purposes of MLA compliance.

Lenders may also receive safe harbor protection through obtaining credit reports. The credit bureaus have reported that the information will be an “add-on” to credit reports, and it is expected there will be a charge for the information. Read ABA’s staff analysis on the rule changes. For more information, contact ABA’s Nessa Feddis.


Faster Payments Task Force Capability Showcase Now Open

 
The Federal Reserve’s Faster Payments Task Force is inviting payment innovators to submit capabilities that can support end-to-end faster payments solutions to its Capability Showcase, a Web forum where solutions providers can share new technologies and ideas. Capabilities put forth should address one or more of the Fed’s Faster Payments Effectiveness Criteria and be intended as a component of an effective end-to-end payments solution.

The showcase is accessible to members of the general public who elect to submit a capability, as well as to members of the Faster and Secure Payments Task Forces. To participate in the showcase, providers should create an account and submit a capability submission form, including company information and a video highlighting the capability. Learn more. For more information, contact ABA's Steve Kenneally.


CFPB Seeks Advisory Council Applications


The Consumer Financial Protection Bureau last Friday requested applications for positions on three advisory panels, including its Community Bank Advisory Council. The council, which meets four times per year, is intended to provide the bureau feedback from banks with less than $10 billion in assets. Council members are named to two-year terms. Applications for the council are due Feb. 29. Read more and apply. For more information, contact ABA’s Jonathan Thessin.


ABA Publishes Free Communications Guide on Banking Issues


ABA on Tuesday released the 2016 edition of ABA’s Communications Guide to the Nation’s Banking Issues. This free, members-only online resource provides road-tested talking points and supporting data on a wide range of industry topics.

This year, ABA added new information about chip payment cards, emerging technologies, the interest rate environment, TRID and the Foreign Account Tax Compliance Act. The guide also includes crisis communications tips and advice to prepare for and give effective interviews.

The guide was prepared by ABA experts and public relations staff, which last year fielded more than 2,300 media calls on behalf of the banking industry. View the Communications Guide.