SDBA eNews

March 21, 2019

Registration Open for 2019 SDBA/NDBA Annual Convention

2019 SDBA/NDBA Annual ConventionEvolving digital technologies, shifting consumer preferences and increasing competition are creating new challenges for banks. As the banking industry is being transformed, there is uncertainty around what the future of the industry will look like over the next decade. Are you ready to re-imagine the future of banking?

The SDBA invites you to FOCUS FORWARD at the 2019 SDBA/NDBA Annual Convention on June 2-4 at the Sioux Falls Convention Center & Sheraton Sioux Falls. Attendees can explore new pathways, seek innovative partners and motivate to embrace the future of banking at this year’s annual convention.

Registration for the 2019 SDBA/NDBA Annual Convention is now open. The early bird deadline to save money on your registration fee is May 8. 

Ag Bankers Invited to Participate in SDSU Ag Land Value Survey

SDSU Extension is inviting ag loan officers to participate in its 2019 Ag Land Value Survey. Data collected from this survey is compiled and used by many industry professionals and producers alike. The survey, which has been ongoing since 1991, will be open through April 14.

Supreme Court: Foreclosure Firms Not Considered Debt Collectors Under FDCPA

The Supreme Court yesterday ruled unanimously in the case of Obduskey v. McCarthy & Holthus LLP that a business engaged only in nonjudicial foreclosure proceedings is not a “debt collector” under the Fair Debt Collection Practices Act.

The case arose when a Colorado homeowner in 2009 defaulted on his Wells Fargo mortgage and the bank hired the law firm of McCarthy & Holthus LLP to carry out a nonjudicial foreclosure on the property. During the foreclosure process, the homeowner alleged that the bank violated the FDCPA’s debt validations procedures. While the law firm is subject to the FDCPA’s provisions specifically related to enforcing a security interest, the Supreme Court in its decision relied on the FDCPA text and legislative history to conclude that it is not a “debt collector” and therefore not subject to the remaining FDCPA provisions.

ABA filed an amicus brief in the case urging the Supreme Court to hold that the FDCPA does not apply to nonjudicial foreclosures. Read ABA’s brief. For more information, contact ABA’s Dawn Causey.

Fed Signals No Rate Hike in 2019

The Federal Open Market Committee announced yesterday that it would maintain the target range for the federal funds rate at the current 2.25 to 2.5 percent, noting slower economic activity in early 2019 than in the previous quarter. 

The committee also adjusted its expectations for future rate hikes—projecting no increases for the remainder of 2019 and only one increase in 2020. Read more

Podcast: How One Bank Built a Young and Diverse Executive Team

Meet a third-generation, family-owned community bank that has brought young, ethnic minority bankers onto its executive team. "Of our executive committee of five, three are Hispanic females. . . . Two of those under the age of 40," says Lonnie Talbert, COO of $385 million Southwest Capital Bank in Albuquerque, N.M., on the latest episode of the ABA Banking Journal Podcast.

"We're really focused in a couple of different areas: how can we get more younger people in the game, and also diversity as it relates to ethnicity and diversity of thought."

Talbert discusses how Southwest Capital has worked to recruit new talent without banking backgrounds but with an ability to lead and relate to people. "You're still dealing with people," he says. "That will really help create that banker of the future." Talbert also talks about preparing for the generational transition in community bank leadership and his service, since 2012, as one of five elected commissioners for Bernalillo County, New Mexico's most populous jurisdiction. Listen to this episode.

CFPB to Host Webinar on Elder Financial Exploitation Study Findings

The Consumer Financial Protection Bureau will host a free webinar on Tuesday, April 9, at 1 p.m. EDT on the findings of its new report on elder financial exploitation. The webinar will focus on the patterns of exploitation revealed in the SARs filed by financial institutions.

As banks continue the fight against elder abuse, the ABA Foundation has compiled a number of resources bankers can use to raise awareness about financial exploitation among older Americans. ABA’s Safe Banking for Seniors program provides free presentation lessons, activities and other materials to educate older Americans and their caregivers about how to bank more securely. FinEdLink connects registered banks with community organizations or agencies to provide banker-led presentations in the community.

HSA Webinars Available in May

JM Consultants is offering two health savings account (HSA) webinars in May. 

An Introduction to HSAs Webinar will be held on May 7. This webinar will provide a solid foundation of operational and compliance issues associated with providing HSAs to customers, including opening, maintaining and distributing procedures.

HSAs: Beyond the Basics Webinar will be held on May 14. This webinar will explore the areas of employee eligibility, handling excess and mistaken distributions, investment diversification and product expansion, including how HSAs are being touted as a retirement savings vehicle in addition to a health care coverage option.  

Both webinars begin at 9:30 a.m. CDT and are scheduled to last 70 minutes. The cost for each webinar is $185, and additional bank branch connections are $60 per connection. 

Enrollment Deadline Nearing for GSBC 2019 School Session

The enrollment deadline is nearing for the Graduate School of Banking at Colorado's 2019 school session, which will be held July 14-26 at the University of Colorado in Boulder, Colo. 

GSBC's annual school session is an ideal professional retreat for community banking's rising stars. Its cutting-edge curriculum will feature a combination of 10 new or revised courses in 2019 to address the industry's demands on community banks. The school provides endless networking opportunities outside of the classroom and facilitate building lifelong relationships with faculty and peers. The school's state-of-the-art campus facilities offer a comfortable and convenient student living experience.

Applying by April 30 is advised as enrollment is subject to availability. Learn more and apply

Compliance Alliance

Question of the Week

Question:  We request a tri-merge credit report for each applicant. Our credit decision relies on the single lowest middle score applicant(s). Can you give guidance on how credit scores would be reported for two or more applicants? Do we report the one score relied on for all applicants, or report the score relied for one applicant and then the other as not applicable?

Answer: The bank would report the credit score that it relied upon in making the decision. From what you described, it sounds like it would be the lowest middle score in this instance. The score would be reported for the applicant or co-applicant and not applicable for the one whose credit score was not used (since it wasn't relied upon in making the credit decision).

To illustrate, assume a transaction involves one applicant and one co-applicant and that the financial institution obtains or creates two credit scores for the applicant and two credit scores for the co-applicant. Assume further that the financial institution relies on a single credit score that is the lowest, highest, most recent, or average of all of the credit scores obtained or created to make the credit decision for the transaction. The financial institution complies with § 1003.4(a)(15) by reporting that credit score and information about the scoring model used for the applicant and reporting that the requirement is not applicable for the first co-applicant or, at the financial institution's discretion, by reporting the data for the first co-applicant and reporting that the requirement is not applicable for the applicant.

Comment 3, 1003.4(a)(15),

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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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Contact Alisa Bousa, SDBA, at 800.726.7322 or via email.