SDBA eNews: June 23, 2016

In This Issue

Free Resources for ABA's Take Your Lawmaker to Work Program

ABA has released a social media toolkit to help members deepen their engagement efforts with their lawmakers as part of its Take Your Lawmaker to Work program.

The toolkit includes customizable social media posts and best practices for engaging members of Congress on Facebook, Twitter and Instagram. In addition, ABA offers a customizable press release bankers can use to help spread the word about their lawmaker visit to the local media.

ABA is encouraging all banks to invite elected officials to visit their institutions during Congress’ summer recess this August. By spending time in the bank, lawmakers get a firsthand look at how banks operate, meet the customers the bank serves and experience the value banks bring to their communities.

GSB Webinar: SWIFT Breaches Spurs FFIEC Guidance

The Graduate School of Banking at the University of Wisconsin-Madison is offering the hot topic webinar SWIFT Breaches Spurs FFIEC Guidance on Tuesday, June 28, at 1 p.m. CDT.

Presenter Dr. Kevin Streff, Secure Banking Solutions, will provide background on recent front page SWIFT losses, explore how these fraud schemes work and look at regulatory expectations for financial institutions. He will describe ways institutions can address the FFIEC guidance and thwart future SWIFT, CEO and other wire fraud.

This management-level discussion will center around core issues in wire fraud and how to build a repeatable framework to address these issues.The presentation will be geared toward executives, information security and operational people looking to understand how the fraud is happening and what needs to be done in their institution.

The webinar is being offered at the discount registration fee of $149. Learn more and register.


Question of the Week

We are taking four parcels as our collateral. We have three separate property addresses. Do we need to list all of the addresses on the loan estimate?

Answer: Yes, all of them must be included on the LE as you can see in the commentary to 1026.37(a)(6) : MULTIPLE PROPERTIES.
Where more than one property secures the credit transaction, § 1026.37(a)(6) requires disclosure of all properties. If the addresses of all properties securing the transaction do not fit in the space allocated on the loan estimate, an additional page with that information with respect to real properties may be appended to the end of the form.

Not a Compliance Alliance member? Learn more about membership with Compliance Alliance by attending one of our live demos:

Compliance rules and regulations change quickly. For timely compliance updates, subscribe to Compliance Alliance’s email newsletters.

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.


SDBA Taking Orders for 2017 Scenes of South Dakota Calendar, Seeking Amateur Photos

The SDBA is taking orders for its 2017 Scenes of South Dakota Calendar.

The calendar will feature photos of South Dakota submitted by South Dakota bankers, their family members and customers. A bank, branch or business logo and name can be printed on each calendar. Calendar orders are due by Sept 1, 2016, to get the low price of $1.19 per calendar. Calendars will be shipped by Nov. 1, 2016.

The Scenes of South Dakota calendars are exclusive to SDBA member banks and associate members. These calendars are a great opportunity to thank your customers for their business and promote your bank/business. The SDBA logo is also included to emphasize the strength and security of South Dakota’s banking industry. Learn more and place an order.

The SDBA is also seeking amateur photos for the 2017 calendar. Send the SDBA your photos of farms, barns, agricultural activities, historical South Dakota locations, county fairs, carnivals, parades or festivals, fall colors, winter snowfalls, spring flowers or summer fun. Any photo that shows the history and beauty of the great state of South Dakota qualifies.

All photos submitted will be judged, and the top photos will be featured throughout the 2017 calendar. The photo entry deadline is July 29, 2016. Learn more and submit a photo.

Questions, contact the SDBA's Alisa DeMers.

SDBA to Co-host Executive Leadership of Cybersecurity Seminar in August

The SDBA, ICBSD, CSBS and the South Dakota Division of Banking are co-sponsoring the Executive Leadership of Cybersecurity (ELOC) Seminar on Aug. 16 at Dakota State University in Madison

The ELOC Seminar addresses the issue of cybersecurity within the financial services industry with a particular focus on community banks. It brings together bankers, law enforcement, and state and federal regulators to discuss the cyber threat landscape, information sharing, the recently released FFIEC Cybersecurity Assessment Tool and additional cybersecurity resources for banks. The non-technical program is designed for bank CEOs, senior executives and bank board members.

CSBS is committed to addressing the issue of cybersecurity in the financial services industry through its ELOC program and is working with state banking agencies and state financial associations around the country to help facilitate local seminars. Learn more and register.

State Associations Urge Action on Rural Appraiser Shortage

The state bankers associations wrote to federal regulators and the Appraisal Qualifications Board yesterday urging action to address a critical shortage of qualified appraisers in rural areas by reforming the criteria necessary to become qualified. A combination of retirements among appraisers, declining young populations in rural areas and the lengthy appraiser training process has resulted in a crunch.

“The shortage of qualified rural appraisers has dramatically increased the time to process a rural real estate loan,” the associations said. “This has created a detrimental ripple effect throughout rural economies in this country because all affected parties, the bank, the seller and the buyer, must remain at a standstill until a qualified appraisal is available to service a loan transaction.” Read the letter.

CFPB Servicing Exams to Emphasize Borrower Requests, Discrimination

The Consumer Financial Protection Bureau yesterday issued updated exam procedures for its mortgage servicing rules, based on the agency’s experience in the two and a half years since the rules took effect in January 2014. The bureau noted that servicers should expect a “greater emphasis” from bureau examiners on how they handle complaints from borrowers and requests from troubled borrowers, as well as discrimination issues.

Examiners will review “whether the servicer has an adequate process for expedited evaluation of complaints or information requests from borrowers facing foreclosure,” the CFPB said, adding that an appropriate complaint escalation process is “essential” to a compliance management system. Meanwhile, “the CFPB is conducting targeted reviews of mortgage servicers’ compliance with fair lending laws,” the bureau added. “This includes looking at those servicers that are creditors, such as those that participate in a credit decision about whether to approve a mortgage loan modification.”

The bureau also released a special edition of its Supervisory Highlights publication focused on servicing. It noted multiple instances where borrowers received late or incorrect information about loan modifications due to technological breakdowns and where borrowers faced runarounds following servicing transfers between companies with incompatible computer systems. View the updated exam procedures. Read Supervisory Highlights.

Nichols Calls for Annual Oversight Hearings for Farm Credit System

ABA President and CEO Rob Nichols on Tuesday wrote to Senate Agriculture Committee leadership urging lawmakers to hold annual oversight hearings of the Farm Credit Administration--the primary federal regulator of the government-sponsored Farm Credit System. Nichols cited the FCS’ rapid growth over the past decade and its declining efforts on behalf of young, beginning and small farmers as reasons why stronger oversight is needed.

In the last decade, the Farm Credit System’s assets more than doubled from $140 billion to $304 billion. And while the GSE continues to see its profits increase, Nichols pointed out that the FCS’ effective tax rate has declined on an annual basis. The FCS has also seen a marked decrease in its efforts to provide credit to young, beginning and small farmers--loans to these farmers have dropped from 30 percent of FCS’ portfolio in 2003 to less than 19 percent in 2015.

“Considering that this GSE was created with specific tax advantages to ensure YBS farmers have a lender who can provide competitive credit, we believe that stronger oversight is needed to ensure compliance with their obligations to serve certain market segments,” Nichols wrote. “Credit for rural America is too valuable…and there must be in-depth oversight to ensure credit availability for all farmers and ranchers.” Read Nichols' letter.

Yellen: Stress Test Relief for Midsize, Regional Banks 'Very Likely'

Echoing similar comments from fellow Federal Reserve Governor Daniel Tarullo, Fed Chairman Janet Yellen on Tuesday told the Senate Banking Committee that the Fed is “very likely” to exempt banks with less than $250 billion in assets from certain elements of the Dodd-Frank Act stress test regime. She added that the Fed is considering other changes.

Earlier this month, Tarullo said the Fed is looking at removing “qualitative” stress testing requirements for banks under the $250 billion asset threshold that are “basically very traditional banks.”