SDBA eNews: September 11, 2014

In This Issue

Bobrow Update Webinar Offered on September 18


As a result of the IRS’s decision to change its longstanding interpretation of the 12-month, IRA-to-IRA rollover rule (in response to the recent tax court decision in “Bobrow v. Commissioner”), many IRA providers will need to amend their IRA plan documents.

Through recent conversations with IRS personnel close to the process, Convergent has gained additional insight regarding the IRS’ position on this topic and the projected timeline for IRA amendments. Based on these conversations, Convergent recommends that IRA providers begin taking steps now in anticipation of a Jan. 1, 2015, effective date.

Convergent is reoffering its Bobrow Update Webinar at 10 a.m. CDT on Thursday, Sept. 18.The cost is $199. To register, call 218.824.4900. Learn more.


SDSU Extension Ag CEO Ag Lenders Conference


SDSU Extension will present its one-day Ag CEO Ag Lenders Conference at four locations across South Dakota in September.

The conference will focus on South Dakota land values and cash rent trends, Farm Bill update, crop production costs, gran market analysis and outlook, and macroeconomic analysis. A planning session will conclude each day's conference wherein program needs, as they relate to producers and lenders, will be discussed.

The conference will be held in Watertown on Sept. 16, Aberdeen on Sept. 18, Pierre on Sept. 23 and Mitchell on Sept. 25. Learn more.


SDBA Taxation Equality Awareness Campaign

 

Learn more and get involved.


Upcoming Events

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Sponsorship Opportunity

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Questions/Comments

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

SDBA Seeks Commercial Insurance Sales Specialist

 
The South Dakota Bankers Association (SDBA) through its for-profit subsidiary, South Dakota Bankers Insurance and Services (SDBIS), Inc., is looking for a highly-motivated, South Dakota-licensed property/casualty agent to assume primary sales and support responsibilities over several lines of business with SDBA member banks.

  • Fidelity Bond
  • Director and Officer Liability Policies
  • Property and Casualty Coverage for Owned and Leased Facilities and Vehicles
  • Cyber Liability, Flood Insurance, Credit Card Protection, etc.

The successful applicant will actively participate in developing and executing a strategy to expand current insurance opportunities by working directly with all SDBA member banks. 

The successful applicant must have a minimum of five years of property and casualty experience, plus commercial insurance and financial institution experience are strong positives. Training on financial liability products will be supplied by the SDBA. See full job description.


Fed to Roll Out Off-Site Exams of Electronic Loan Records

Federal Reserve Governor Daniel Tarullo told the Senate Banking Committee on Tuesday that the Fed is working to improve its off-site examination processes so as to minimize “the burden that the on-site presence of many examiners can place on the day-to-day business of a community bank.”

“Last year we completed a pilot on conducting parts of the labor-intensive loan review off-site using electronic records from banks,” he explained. “Based on good results with the pilot, we are planning to continue using this approach in future reviews at banks where bank management is supportive of the process and where electronic records are available.”

Tarullo also repeated his previous call for Congress to revisit the Dodd-Frank Act and consider exempting community banks from the Volcker Rule and the Section 956 incentive compensation rules. His remarks reflect longstanding ABA concerns that regulators should tailor rules to the industry’s diversity rather than imposing inefficient one-size-fits-all policies.


Apple Unveils 'Apply Pay' Virtual Wallet


Apple unveiled on Tuesday its new iPhone 6 and a new virtual wallet app called Apple Pay that will allow iPhone 6 users to make purchases at points of sale with their phones. Apple Pay is leveraged on the 800 million credit cards Apple reportedly has on file in its iTunes store.

To pay, an Apple Pay customer will hold a phone near an encrypted-transmission sensor and press the fingerprint recognition device in the phone’s home button. The payment will be automatically processed from a card stored in the user’s Apple account. The store clerk will not see any card information. To protect users, no card information will be stored on the phone, Apple said; instead, the phone will relay a device number and a dynamic security code.

Apple said it has lined up numerous retailers to accept Apple Pay, including Macys, Walgreens, McDonald’s, Subway and Duane Reed. It has also partnered with Visa, MasterCard and American Express and with the six largest card-issuing U.S. banks. Apple Pay is expected to be available in October.

As payment options such as Apple Pay and other virtual wallets evolve, ABA will continue to emphasize the importance of consumer protection across all electronic payments, high standards to ensure the integrity of the payments system and a level playing field for all payments system participants.


Waters Circulates Credit Reporting Bill

 
House Financial Services Committee Ranking Member Maxine Waters (D-Calif.) yesterday circulated a draft bill that changes what information is included in credit reports and for how long.

The bill would exclude from reporting delinquencies on mortgage loans found to have been unfair, deceptive, abusive, fraudulent or illegal; fully paid or settled debts; and delinquencies on private student loans after nine consecutive monthly payments have been made.

The bill would also reduce by three years the amount of time adverse entries are included credit reports. Creditors and their successors would be required to retain relevant records on a customer’s debts for as long as the adverse information remains on a credit report.

With two very narrow exceptions, Waters’ draft would also ban employers from using credit reports in hiring unless the Consumer Financial Protection Bureau were to determine that credit history is a more reliable indicator of employee performance than “alternative scoring methods.” Read a summary.


CFPB Updates TILA-RESPA Small Entity Compliance, Form Guides


The Consumer Financial Protection Bureau on Monday updated its small entity compliance guide and new mortgage disclosure form guide for the merger of the Truth in Lending Act and the Real Estate Settlement Procedures Act. The rule, which takes effect Aug. 1, 2015, merges the TILA and RESPA-mandated disclosures into two forms: the Loan Estimate and the Closing Disclosure.

The CFPB also issued a new sample disclosure timeline illustrating what actions would be expected of a creditor at different stages of the origination process.


New Ad Questions CU's Service to People of Modest Means


Complementing ABA’s radio spot targeting the credit union tax exemption, ABA is running a new ad in Capitol Hill newspaper Politico explaining credit unions’ failure to adequately serve customers of modest means.

The ad appeared Tuesday, Wednesday and today while federal credit union executives are gathering in Washington, D.C., this week to lobby for their agenda on the Hill.

View the print ad. Listen to the radio ad.