SDBA eNews: February 11, 2016

In This Issue

Obama Launches Cyber National Action Plan

 
President Obama on Tuesday signed an executive order launching a Cybersecurity National Action Plan to help the federal government and businesses protect Americans from cyber attacks. As part of the federal budget request also released Tuesday, Obama is seeking $19 billion to fund the action plan.

The president’s approach includes launching a new Commission on Enhancing National Cybersecurity to make recommendations; modernizing federal IT infrastructure with a new federal chief informational security officer; using public awareness campaigns to promote consumer uptake of multi-factor authentication; and launching a Federal Privacy Council to ensure the federal government better protects Americans’ private data.

“For more than 15 years, banks have led the way in implementing multi-factor authentication and other consumer cyber safeguards,” said ABA SVP Doug Johnson. “America’s bankers will eagerly continue to work with government and other sectors of our economy to further protect customers, our nation’s financial infrastructure and our country from cyber threats.” Read more.


ABA Launches Interactive Map of State Banking Legislation


ABA has launched an interactive, members-only online map to help bankers track banking-related state legislation. Powered by the Working Group on State Issues -- an ABA and state association partnership monitoring activity in state capitols -- the map provides quick access to the latest developments at the state level. Access the map. For more information, contact ABA’s Andy Guggenheim.



Question of the Week

Regarding the exemption from mandatory escrow of flood insurance for subordinate lien loans, is the bank required to monitor whether a subordinate lien loan is moved to the first-lien position?

Answer: No. The bank is not required to monitor the loan’s lien position. Whether the loan qualifies for the exemption is determined at the time the loan is made, increased, extended, or renewed, on or after Jan. 1, 2016. Note, however, that if the bank becomes aware (for whatever reason) that the loan is no longer in a subordinate position, then it will be required to escrow for flood premiums and fees at that point.

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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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Questions/Comments

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


WINNING Together! at 2016 NDBA/SDBA Annual Convention


We will be WINNING Together! at the 2016 NDBA/SDBA Annual Convention. Your energy and involvement are needed. It takes all of us to create success for banks, customers and communities. 

Join the NDBA and SDBA June 12-14 at the Ramkota Hotel, Bismarck, N.D., as we celebrate people making a positive difference. NDBA looks forward to hosting another memorable convention.

Bankers and business partners are excited about the WINNING Together! theme…and the momentum is growing. This convention will offer nationally-acclaimed speakers and great networking opportunities…and will close with a Vegas-style stage show. 

Sponsorships are now being taken. Those who would like to be listed in the convention registration materials must commit to a sponsorship by Feb. 26. Learn more about sponsoring. Registration materials will be available in late March. Visit the convention website.


SDBA Seeks Candidates for 2016-2017 Officers


Are you interested in becoming an officer of the South Dakota Bankers Association?

SDBA officers include the chairman, chairman-elect, vice chairman and immediate past chairman. The SDBA is currently seeking people who are interested in running for the vice chairman position, which will be elected at the Annual Convention on June 14, 2016, in Bismarck, N.D.

The current chairman-elect, Paul Domke (Heartland State Bank, Redfield), will automatically assume the chairman position on June 14, 2016. The current vice chairman, Dave Rozenboom (First PREMIER Bank, Sioux Falls), will be eligible to run for chairman-elect. The position of vice chairman will be up for election. Current Chairman Rick Rylance (Dacotah Bank, Rapid City) will automatically become the immediate past chairman.

Executive officers of any SDBA voting member bank are eligible to run for vice chairman. If you are interested in running for the position, contact a member of the nominating committee for more information and submit a letter of intent to SDBA President Curt Everson at [email protected]. Learn more.


South Dakota Banks: Making a Difference in Our Communities


The SDBA unveiled the latest results of its State Banking Data Project during its State Legislative Day yesterday in Pierre. Copies of the promotional handout were provided to all attendees at the legislative dinner and to all state legislators. It will also be mailed to all SDBA member banks and associate members.

Each January, the SDBA surveys its member banks and collects data on the importance of banks to their local communities and to the state as a whole. The annual project demonstrates that banks are great corporate citizens and serve as “stewards” of their communities and the state in ways beyond routine banking services.

The document is a great tool that banks can use to promote all of the things they do for their communities. Banks are encouraged to use the document in their promotional efforts, make copies as needed and link the document on their websites. Download a high resolution copy for printing.

If you have questions about the survey or if you need the handout in a different format, contact Alisa DeMers, SDBA, at 800.726.7322 or 605.224.1653.


SDBA Joins ABA Foundation's Safe Banking for Seniors Campaign

Educational program to prevent elder financial fraud.

The SDBA is joining the American Bankers Association Foundation’s Safe Banking for Seniors campaign. Through this campaign, the SDBA will mobilize bankers across South Dakota to educate older Americans and their caregivers about elder financial abuse and how to prevent it.

“We’ve found that bankers are often the first line of defense against elder financial fraud from educating and advising customers to spotting the signs of abuse,” said SDBA President Curt Everson. “We take our role seriously, and the more we can educate seniors and their caregivers, the better protected they can be.”

“We’re pleased that the SDBA has pledged to join in the fight against elder financial abuse,” said Corey Carlisle, executive director, ABA Foundation. “We look forward to working closely with the association to educate seniors and their caregivers in South Dakota.”

Registered bankers will receive event materials, lesson plans, media outreach tools and best practices through the ABA Foundation. The lesson plans focus on the following four topics:  

  • Identifying and Avoiding Scams
  • Protecting Your Assets by Preventing Identity Theft
  • Choosing a Financial Caregiver
  • Acting as a Responsible Financial Caregiver

Banks can register to participate in the initiative at aba.com/seniors. Register for a free webinar on Wednesday, Feb. 24, 1 p.m. CT to learn more about the program and the resources available.


ABA, SDBA Hit Back at NCUA Membership Proposal

 
Proposed regulations from the National Credit Union Administration (NCUA) would render the concept of a common bond between credit union members meaningless, ABA said in a comment letter filed last Friday. NCUA has proposed to expand the already loose fields of membership from which federal credit unions can draw their customers.

NCUA’s proposal far “oversteps its regulatory authority, sidestepping Federal Credit Union Act requirements in the name of industry growth and replacing its own judgment for that of Congress,” ABA said. The association urged NCUA “to reconsider this egregious overreach and shelve this proposal in favor of working with Congress to secure any desired modifications to credit union field of membership requirements.”

ABA argued that the proposal goes well beyond reasonable definitions of “local” when defining common bond, that its “rural district” definition would likewise render common bonds meaningless and that its expansion of the multiple common bond charter violates the statute. ABA added that NCUA did not -- but should -- address the major adverse competitive effects of the proposal.

In related news, SDBA President Curt Everson also sent a letter last Thursday on behalf of SDBA member banks to the NCUA, as well as copied it to South Dakota's congressional delegates. Everson expressed the SDBA's concerns about the NCUA field of membership expansion proposal.

"By redefining what constitutes a local community and a rural district, your agency is effectively authorizing the creation of a well-defined local community that encompasses the entire state of South Dakota," Everson wrote in the letter. "How can anyone rationalize that a geographical area covering 77,116 square miles meets the definition of a well-defined local community?"

In addition, the state bankers associations wrote to the congressional taxation committees last Friday and urged them to “investigate the tax implications of the latest increase in powers” NCUA has proposed for credit unions. “The proposed changes should call into question whether the 82-year-old tax exemption is appropriate in the modern era,” the groups said, calling for Congress to level the playing field between taxpaying banks and tax-exempt credit unions that are otherwise virtually identical.


Bipartisan Bill Introduced to Ease Call Report Burdens


Reps. Randy Hultgren (R-Ill.), Terri Sewell (D-Ala.) and Blaine Luetkemeyer (R-Mo.) on Tuesday introduced the Community Bank Reporting Relief Act, an ABA-supported measure that would streamline bank reporting by permitting well-capitalized and highly-rated banks to file a short-form Call Report in the first and third quarters each year. The full Call Report would be required in other quarters.

Similar legislation has been included in numerous other ABA-advocated regulatory relief packages introduced in this and previous congresses and enjoys broad bipartisan support. ABA is also working closely with the regulatory agencies to provide banker feedback on Call Report burdens for all banks as part of an accelerated review the agencies are currently conducting. Read more.