SDBA eNews

January 18, 2024


Join the SDBA at the ABA Washington Summit | March 18-20

The SDBA will again attend the ABA Washington DC Summit and would like to invite you and your staff to participate as well. Registration is free and you can learn more and register here. Join us as we hear from top-notch speakers, connect with our congressional delegation and dine with our friends at the NDBA. You won’t want to miss this opportunity to engage on multiple levels.

If you or one of your staff would like to attend, the SDBA will provide a $500 stipend (one per member bank) to help defray the costs of any banker attending from a member bank not currently represented on the SDBA Board. There will also be an Emerging Leaders’ Forum and a Women’s Leadership Forum held in conjunction with the Summit. With recent efforts by the SDBA in both of these areas, we would strongly encourage you to take a look at these two opportunities.

In addition to the $500 stipend above, in partnership with ABA, the SDBA will provide two $750 scholarships to Emerging Leaders would like to attend the Summit, as well! For consideration or to learn more, please contact Halley Lee, SDBA's Administrative Vice President. Deadline to express interest is Friday, February 16.

SD Bankers Foundation Now Accepting Student Scholarship Applications! 

Attention all South Dakota college students entering their senior year in fall 2024! The SD Bankers Foundation is again offering five scholarships to students attending a South Dakota college. These include one $4,000 scholarship, three $3,000 scholarships and one $1,500 scholarship that are available to college juniors (seniors beginning fall 2024) who have expressed an interest in a career in banking or finance. This may include business, finance, IT, cybersecurity, HR, marketing, etc., so long as the expressed interest is in the banking or finance industry. 

Please consider sharing this invitation with students who could benefit from these scholarship dollars! Details and the application can be found hereDeadline to apply is Friday, March 29, 2024. Notification of award status will be made by Friday, May 3, 2024, and if chosen, the scholarship award will be paid directly to the student’s university. Contact the SDBA for questions or more information at [email protected]

REGISTRATION OPEN: SDBA NEXT STEP: Emerging Leaders Virtual Power Hour | Wednesday, April 17

The SDBA will once again be hosting a FREE Emerging Leaders Power Hour via Zoom this spring on Wednesday, April 17 at 3:30 p.m. CDT. Duncan Taylor, SVP and Chief Operating Officer for the Washington Bankers Association, and President of WBA Professional Services, Inc., is our presenter this year, and will share is newly launched topic, "Antiwork: How a Savvy, Angry Generation is Rebelling Against *YOUR* Company." This session will explore the most popular and consistent themes of the growing "antiwork" movement.

Session objectives: Help executives, leaders, and managers identify the ways they unwittingly contribute to the antiwork mindset; Discuss how to avoid job posting phrases that will get you flamed; Explain how to have an actual human conversation with a savvy millennial or Gen Z employee, without corpo-speak.

This virtual power hour learning event is FREE and open to all bankers, but Emerging Leaders are especially encouraged to attend. Registration is required Learn more about Duncan and register here.

FinCEN Updates FAQs on Beneficial Ownership Information Reporting 

The Financial Crimes Information Network has added or updated 18 questions to its FAQ list on beneficial ownership information reporting since the agency began collecting reports at the beginning of January. New or updated content includes answers to questions on the circumstances under which an entity, rather than an individual, can be reported as a beneficial owner of a reporting company, and how third-party service providers can assist reporting companies by submitting required information to FinCEN on their behalf. View the FAQ list

Nichols: Basel Proposal 'Unworkable'

The capital standards proposal is unworkable in its current form and needs to be withdrawn, ABA President and CEO Rob Nichols said. During a joint ABA/BPI press conference, Nichols highlighted three key problems with the proposal: Regulators failed to conduct a thorough and transparent data analysis to justify the rule change; it would restrict funding availability at a time when policymakers are working to avoid a recession; and it would ultimately threaten the ability of banks of all sizes to serve their customers, clients and communities.

“Regulators also say these changes are being driven by an international agreement, yet their foreign counterparts in other countries have chosen not to impose these higher capital requirements on their banks, putting U.S. institutions at a competitive disadvantage,” Nichols said. “These are outcomes no one should want and we can avoid them if regulators rethink this proposal.”

Nichols noted that regulators have stated repeatedly over the past several years that the banking sector is already strong and well-capitalized. He also noted that U.S. banks not only survived the economic challenges posed by the COVID-19 pandemic, but played a critical role in helping the U.S. economy emerge faster from that downturn than the rest of the world. “So the bottom line is we don’t see the justification for these kinds of capital increases,” he said. Full article linked here.

Bowman to Speak at Conference for Community Bankers 

Federal Reserve Governor Michelle Bowman will speak at the 2024 Conference for Community Bankers, Feb. 11-13 in San Antonio, Texas. Bowman, a former community banker, will deliver opening remarks and then sit down for a conversation with ABA Chair Julieann Thurlow. They will discuss the economic outlook as well as some of the policy issues facing the banking sector, especially the nation's community banks. 

Bowman joins a speaker lineup that includes Acting Comptroller of the Currency Michael Hsu, who will discuss current banking policy issues and the OCC’s 2024 top priorities. Attendees should book reservations by Thursday at 5 p.m. EST to take advantage of ABA-preferred hotel rates. Register for the conference.

CISA News: Top Cybersecurity Podcasts

If you’re into cybersecurity podcasts – here’s a list of some popular ones. Apple's Clickless Exploit: An in-depth technical deep dive on the Steve Gibson podcast. Starts at about the 20-minute mark. 

  Compliance Alliance logo


Q: Regarding escrow shortages, is 12 months the maximum that we can spread a shortage out over?
A: Regulation X states that a shortage may be repaid over a minimum of 12 months, as set out here:

“…If the shortage is less than one month’s escrow payment, then the servicer:
• May allow a shortage to exist and do nothing to change it,
• May require the borrower to repay the shortage amount within 30 days, or
• May require the borrower to repay the shortage amount in equal monthly payments over at least a 12-month period.
If the shortage is equal to or more than one month’s escrow account payment, then the servicer:
• May allow a shortage to exist and do nothing to change it, or
• May require the borrower to repay the shortage in equal monthly payments over at least a 12-month period.

12 CFR § 1024.17(f)(3).
The specified repayment options in Regulation X are exclusive. Therefore, a servicer cannot include in the annual escrow statement any options for repayment of shortages that are not specified in Regulation X, such as a lump sum payment option for a shortage that is equal to or more than one month’s escrow payment. …”
Note that as always, the bank should also consider UDAP/UDAAP and fair lending implications when making these decisions.

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 [email protected] and ask for our Membership Team.

For timely compliance updates, subscribe to Bankers Alliance’s email newsletters.


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