Updated SD Banking Record Retention Manual Now Available
 The SDBA's Record Retention has been updated and is now available for banks to use.
A complete record retention policy not only keeps banking institutions in compliance with state and federal retention requirements, but it also conserves resources by not keeping records longer than necessary. Both state and federal statutes and regulations contain record retention requirements.
The SDBA's South Dakota Banking Record Retention Manual is an easy-to-use reference guide for banks and employees. Information in the manual was compiled by SDBA Legal Counsel Brett Koenecke with May, Adam, Gerdes & Thompson LLP, Pierre, in August 2014.
A copy will be mailed to all banks and branches next week, and the manual is available online as a pdf file. Questions, email the SDBA's Alisa DeMers or call 605.224.1653.
OCC Warns on Auto Lending, HELOC, Debt Sale Risks
The OCC wants banks to be aware of risks arising from auto lending, home equity lines of credit and sales of bad debt, Deputy Comptroller Darrin Benhart said Tuesday at an industry conference in Las Vegas.
Competitive pressure is driving higher risk in car loans, Benhart said, adding that rising risk is quantified in the higher loan-to-value ratio of car loans and an average chargeoff that is 12 percent higher than the year before. Benhart also warned about the risks associated with the end-of-draw periods on HELOCs taken out during the housing boom.
Benhart also mentioned the OCC's guidance on sales of consumer debt. "In their work, OCC examiners will determine whether bank management has established controls and implemented a rigorous analytical process to identify, measure, monitor and manage the risks associated with debt sales," he said. Read the speech.
CFPB Reveals Supervisory Concerns about Servicing Rules
The Consumer Financial Protection Bureau Tuesday issued a “Supervisory Highlights” report that outlined several areas of concern its examiners have had with the new servicing rules.
The report said that the bureau’s examiners cited violations based on insufficient or lacking policies and procedures for monitoring third-party service providers and information sharing with vendors. It also found that at least one servicer failed to make trial loan modifications permanent as early as possible and found the delay to be an unfair practice.
The report also included supervisory notes on money transfers, student loan servicing, HMDA data submission and debt collection and provided an overview of recent CFPB regulatory and public enforcement activity. Read more.
CFPB Issues Lists of Rural, Underserved Counties for 2015
The Consumer Financial Protection Bureau on Monday released lists of rural or underserved counties to use in 2015 in conjunction with the bureau’s Ability-to-Repay, escrow, HOEPA and appraisal rules.
Rural counties and county-level jurisdictions were generally defined by using a U.S. Department of Agriculture classification system and underserved counties were defined by data collected under the Home Mortgage Disclosure Act, the CFPB said.
FinCEN: Bitcoin Traders, Payment Platform Operators are MSBs
Traders of virtual currencies -- such as bitcoin – as well as virtual currency payment platform operators are considered money services businesses under the Bank Secrecy Act, the Financial Crimes Enforcement Network said on Tuesday.
In two administrative rulings, FinCEN determined that the business models at issue did not meet the four conditions required for a payment processor to be exempt from definition as an MSB.
FCA Attempts End-Run of Limits on Farm Credit Investments
ABA and the state bankers associations last week rebuked the Farm Credit Administration for attempting to cloak major changes in investment policies for Farm Credit System institutions in a proposed rule ostensibly intended to review credit rating regulations.
“This broad-based investment expansion being conducted without express authorization from Congress is exactly the type of action that creates significant risk for all FCS institutions, and American taxpayers could ultimately be on the hook for failures in the investment portfolios of FCS institutions if the proposed rule is adopted,” the groups said.
The proposed rule would allow the FCA to determine on a “case-by-case” basis if otherwise ineligible investments by an FCS lender are permitted, while also giving more flexibility to FCS institutions to make a variety of investments for risk management purposes.
ABA and the state associations called on the FCA to withdraw its proposed rule and fully explain why FCS lenders need additional investment authority. “If FCS institutions are able to leverage their tax-preferred, government-sponsored enterprise status to make investments outside of the congressionally mandated mission of the FCS, it will inevitably lead to more risk to FCS institutions, more risk to taxpayers, and more uncertainty for ... farmers and ranchers,” they added. Read ABA's letter.
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