GSB Bank Technology Management School Slated for April 17-22
Don't miss the GSB Bank Technology Management School--an innovative one-week school that's designed by, and especially for, IT professionals and information security officers in the financial industry. The school will be held April 17-22, 2016, at the University of Wisconsin-Madison.
The school uses a mix of lecture, small group discussions and interactive computer labs. The hands-on, computer-based simulation labs allows attendees to explore penetration and vulnerability testing, security attacks, early detection of data breeches and more. Designed to help improve productivity and value at banks, attendees will also establish a network of professional colleagues with whom to collaborate and exchange ideas for years to come.
Apply today to take advantage of this opportunity to learn from experts in the banking industry about today's key issues in IT management and how those critical issues relate to the bank's goals and bottom line. The enrollment deadline is March 17.
FDIC Releases Consumer Cybersecurity Guide
The FDIC on Tuesday released a special edition of the agency’s quarterly FDIC Consumer News entitled “A Bank Customer’s Guide to Cybersecurity.” The publication features several articles on cyber-related topics, including safety precautions for computers, smartphones and tablets; tips for avoiding identity theft online; and the roles of banks and the government in consumer protection. It also features a short quiz on the material covered in the issue and a cybersecurity checklist for protecting personal data from online criminals. Read the publication.
Question of the Week
If we have a loan to satisfy an existing lien on a vacant lot and provide funds for the initial construction of a dwelling on that lot, what would the purpose be for the loan estimate? The loan will be secured by the lot and new construction.
Answer: This would be a refinance. There are four possible loan purposes on the loan estimate and closing disclosure: purchase, refinance, construction and home equity. For loans with multiple purposes, you would list purchase over refinance, refinance over construction, and construction over home equity.
In this case, we have two purposes. A refinance of an existing lien that is secured by the property and the initial construction of a dwelling – so a refinance and a construction loan. Since refinance trumps construction, you would list the loan purpose on the loan estimate and closing disclosure as a “refinance."
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Upcoming Events
- ABA Government Relations Summit: March 14-16, 2016, Washington, D.C.
- 2016 Dakota School of Lending Principles: March 29-April 1, 2016, Bismarck, N.D.
- Legal Issues of New Account Documentation: April 7, 2016, Sioux Falls
- SDBA 2016 Agricultural Credit Conference: April 13-15, 2016, Pierre
View all SDBA events
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Questions/Comments
Contact Alisa DeMers, SDBA, at 800. 726.7322 or via email.
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Make Plans To Be 'Winning Together' in Bismarck
Make plans to be "winning together" at the 2016 SDBA/NDBA Annual Convention June 12-14 in Bismarck, N.D. This year's event will be three days and three nights of education, recreation, networking, food and some surprises. No matter how you deal the cards or roll the dice, we will be "winning together."
One featured session will be "The Loyalty Switch" by James Kane, Philadelphia, Pa. In this fascinating and highly-entertaining presentation, Kane will take the audience on a journey into the human brain and explain the science behind true loyalty and human relationships.
Building on more than 40 years of Harvard University research, Kane will make the case that human beings have a fundamental need to be loyal and actively seek out the specific clues from others that tell them when they can and should be. When an organization, as well as an individual, is able to understand and demonstrate those loyalty-building behaviors, they can develop relationships that will last a lifetime and result in unwavering and unlimited support. Learn more.
We watching for 2016 convention registration and exhibitor materials available in late March. Visit ndbaconvention.com.
ABA, Farm Groups Oppose Cuts to Farm Programs
ABA and more than 250 other farm-related groups on Wednesday wrote to the leaders of the congressional appropriations and budget committees, urging them not to make further cuts to federal agriculture programs. The groups noted that the 2014 Farm Bill trimmed $16 billion over 10 years.
“These difficult cuts resulted from hard choices made to reform and reduce the farm safety net, conservation programs and nutrition assistance programs,” they said. “Some of the reforms made in the new farm bill are still being implemented.” As a result, the groups urged Congress to refrain from making any further cuts or reopening the Farm Bill during the 2017 budget process. Read the letter.
Treasury Secretary Lew Fields Questions on Reg Relief
Treasury Secretary Jack Lew faced questions from members of the Senate Appropriations Committee about regulatory relief for the nation’s community banks Tuesday during a financial services subcommittee hearing about the administration’s budget request. Some panel members expressed disappointment that a regulatory reform bill proposed by Sen. Richard Shelby (R-Ala.) -- which ABA aggressively advocated for -- was defeated in December after failing to gain enough bipartisan support.
Lew argued that the bill did not make proper distinctions between small and large banks and would have been too broad in its revision of Dodd-Frank. “If it had been a proposal that didn’t have such damaging provisions, we would have responded in a different way.”
In advance of the hearing, ABA and state banker associations worked to educate subcommittee members on the need for regulatory relief. Subcommittee Chairman John Boozman (R-Ark.) in an interview with Politico on Monday said that attaching bank regulatory changes to a government spending bill may still be an option on the table, but that “all of those kind of things are up in the air.”
ABA Comments on FDIC Proposal for Small Bank Assessments
ABA on Monday offered feedback on the FDIC’s revised proposal for assessing deposit insurance premiums on banks with under $10 billion in assets. The association generally supported the revised proposal -- which incorporated several of ABA’s comments on the initial proposal issued last June -- however, the comment letter highlighted three lingering areas of concern with the revised assessment formula: the proposed “loan mix index,” the weighting for the tier 1 leverage ratio, and the proposed asset growth factor.
ABA recommended that the revised formula should measure loan asset quality management based on the performance of a bank’s own loan portfolio in the past, rather than using an index of the types of loans in its portfolio. The letter also urged FDIC to: not penalize well-capitalized banks with CAMELS ratings of I or II simply because they do not hold excessive amounts of tier 1 capital; recognize that asset growth -- even in excess of a 10 percent four-quarter threshold -- is normal and healthy and does not warrant higher assessments; and use CAMELS component ratings to gauge asset quality and management.
Members of ABA’s Government Relations Council Administrative Committee communicated the need for these changes in person last Friday during a meeting with FDIC officials.
The FDIC is expected to issue its final rule this summer, and the revised system will take effect the quarter after the FDIC insurance fund reaches 1.15 percent of insured deposits, which is expected in the second or third quarter of 2016. However, ABA recommended a delay in implementation if time is needed for the suggested revisions to be incorporated into the final version of the formula. Read the letter. For more information, contact ABA's Rob Strand.
CFPB Accepting Consumer Complaints for Marketplace Lenders
The CFPB announced on Monday that it is now accepting consumer complaints about loans from online marketplace lenders. Borrowers submitting complaints will be able to select the type of loan they took out, such as a mortgage, consumer loan or student loan. Complaints will be forwarded to the lender, who will be expected to respond within 15 days.
The CFPB also issued a bulletin which included things consumers should consider before taking out a loan with a marketplace lender. Read more.
Agencies Issue Clarifying Guidance on Evaluations Versus Appraisals
The federal banking agencies last Friday issued clarifying guidance on when an evaluation is permitted instead of an appraisal for loans secured by real estate. Appraisals are optional, while evaluations are required, for: loan amounts of $250,000 or less; renewals, refinances and other transactions involving existing extensions of credit; and real estate-secured business loans with a value of $1 million or less when income from the real estate is not the primary source of repaying the loan.
The guidance also provided information on how an evaluation should be prepared and by whom and the required contents of an evaluation report. Read the guidance.
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