In This Issue

• Legendary Lineup of Breakout Speakers at Annual Convention
• SDDA Provides Ag Mediation and Finance Counseling
• HUD Revises Adjustment Guidelines for FHA-Insured ARMs
• CFPB Examines Senior Citizens' Mortgage Debt
• Feds Seek Partners for Financial Services IT Security Model
• SDBA to Hold IRA School in September

Legendary Lineup of Breakout Speakers at Annual Convention

The NDBA/SDBA 2014 Annual Convention offers a legendary lineup of breakout speakers on Tuesday, June 10.

This year's Annual Convention will be held June 8-10 at the Ramada Plaza Suites in Fargo, N.D. Breakout sessions on Tuesday are:

• "Wired and Dangerous: How Your Customers Have Changed and What to do About It"
• "Building Your Own Best Business Model"
• "Managing Interest Rate Risk for Optimal Bank Performance"
• "Stress Testing: Executing and Integrating into Strategic Planning"

Learn more about the breakout sessions. See the full agenda and register to attend.

SDDA Provides Ag Mediation and Finance Counseling

The South Dakota Department of Agriculture's (SDDA's) Farm Loan Mediation Program is designed to provide assistance to borrowers and creditors who seek to use mediation as a method for resolving credit disputes. 

Mediations can be mandatory or voluntary. South Dakota Codified Law requires a creditor to go through mediation before foreclosing on an agricultural debt of more than $50,000. If debt is less than $50,000, debtors and/or creditors may also request voluntary mediation. 

“Ideally, if we can avoid a mandatory mediation, we would like to do that, and we encourage lenders to visit with their customers if they can see a credit issue on the horizon,” says Terri LaBrie, SDDA finance administrator. “Perhaps a voluntary mediation and working with a finance counselor one-on-one can help that borrower turn the corner and prevent a mandatory mediation.”

Once a mediation is requested, confidential financial counseling services are offered free of charge during the mediation period to prepare the parties for mediation. SDDA contracts with private mediators and finance counselors which are located across the state, allowing the department to conveniently schedule mediation sessions in an area near the debtor/creditor.

A request for mediation must be received by the department to begin the process. Mediation fees are minimal and paid by all parties to the mediation. Mediation is also available for other creditors such as veterinarians and feed stores.

For more information, call SDDA at 605.773.5436 or visit the department's website.

HUD Revises Adjustment Guidelines for FHA-Insured ARMs

 
The Department of Housing and Urban Development last week proposing changes to how Federal Housing Administration-insured adjustable-rate mortgages are adjusted. The changes are intended to align FHA’s lender requirements with the Consumer Financial Protection Bureau’s servicing rule.

The proposal requires a 45-day “look-back” period -- that is, the gap between an ARM index calculation and the date the rate adjusts -- up from the current 30-day look-back. It also provides for a 60-120 day notice period prior to ARM adjustments, up from the 25 days FHA currently requires.

The changes will take effect for FHA-insured ARMs originated after Jan. 10, 2015. Comments are due June 7. Read the proposed rule.

CFPB Examines Senior Citizens' Mortgage Debt

Mortgage debt is rising among senior citizens, the Consumer Financial Protection Bureau said in a report last week. While a little more than 80 percent of Americans over 65 own their home -- a consistent figure over time -- the percentage of seniors who carry a mortgage has risen from 22 percent in 2001 to 30 percent in 2011.

A boom in refinancing, a trend toward buying a first home later in life and home equity borrowing all contributed to the increase in mortgage debt, the bureau said. Seniors’ average outstanding balances relative to the value of their homes also rose from 30 to 46 percent over 2001-2011.

“Decreased home equity wealth is a great concern in light of Americans’ increased longevity and lack of financial preparedness for retirement,” the CFPB said. “For many, home equity -- which is often their primary and sometimes only asset -- may not be there when they are likely to need it later in life.” Read the report.

Feds Seek Partners for Financial Services IT Security Model

The National Cybersecurity Center of Excellence last week invited organizations to offer products and technical expertise toward a model, integrated cybersecurity system for financial services companies. The standards-based system envisioned would integrate firms’ existing IT asset management, hardware and software support and IT security. It would keep all IT assets, from smartphones and laptops to servers and databases, up-to-date to protect against cyber attacks.

NCCoE -- a partnership that includes the National Institute of Standards and Technology, which is implementing President Obama’s executive order on cybersecurity -- said it is seeking technology vendors that can contribute to a potential model for how companies can integrate these assets. Vendors’ commercially available products would become modules in a system application, not endorsed by NIST but used as reference points for compliance with certain standards.

NCCoE said it would release the results of the project in a free guide with a materials list and implementation instructions. Read more.  View NCCoE's project goals.

SDBA to Hold IRA School in September

IRAs still have unlimited potential. Fewer people are qualifying for pensions, and more than 50 percent of all employees work for an employer that doesn’t offer any type of retirement plan. IRAs are the alternative, so let’s work together to see how we can increase your IRAs.

The South Dakota Bankers Association (SDBA) is offering its 2014 IRA School Sept. 3-5 at the Clubhouse Hotel & Suites in Sioux Falls. Learn about possible changes that will affect IRAs. The school will also cover:

• Traditional IRA (major emphasis)
• Roth IRA (major emphasis)
• Health Savings Accounts (1.5-2 hours Friday p.m.)
• SEP-IRA
• SIMPLE-IRA