SDBA eNews

October 3, 2019

LEAD STRONG: Women in Banking Conference Launches Next Week

Photo of women.The SDBA will host the second annual LEAD STRONG: Women in Banking Conference on Oct. 9-10 at the Sioux Falls Convention Center in Sioux Falls. 

Attendees can connect Wednesday evening at a networking reception from 5:30 to 7 p.m. in Meetings Rooms 8-10 at the Convention Center. Thursday will begin with registration and a continental breakfast from 8 to 8:30 a.m., with the conference welcome at 8:30 a.m.

This year's service project is the Helpline Center (211). The Helpline Center connects people across the state to resources and support and offers hope to those with thoughts of suicide. To help women in need, the SDBA will be collecting donations of unopened personal care items such as shampoo, body wash, deodorant, toothpaste and most-importantly feminine hygiene products, which are expensive to buy. The Helpline Center will distribute the items to organizations that work with women, along with resource cards about 211. Also welcomed are cash donations to the Helpline Center, which the SDBA will also collect.

All sessions will be held at the Sioux Falls Convention Center at 1201 N. West Ave. If you haven't made plans to attend the LEAD STRONG: Women in Banking Conference, there is still time to register.

Agencies Finalize Rule Raising Residential Real Estate Appraisal Threshold

The financial regulatory agencies last Friday issued a final rule—which takes effect the day after publication in the Federal Register—raising the appraisal threshold for residential real estate transactions from $250,000 to $400,000. The new threshold addresses numerous concerns raised by ABA and other industry stakeholders over the time and cost of appraisals.

Under the rule, transactions that qualify for the exemption still need to obtain an evaluation consistent with safe and sound banking practices. This evaluation will provide an estimate of the market value of the property without requiring the involvement of a state licensed or certified appraiser. The final rule does not apply to loans sold to or guaranteed by the FHA, HUD, VA, Fannie Mae, or Freddie Mac—which will still require an appraisal, according to each agency’s rules.

While S. 2155 created an exemption from appraisals for rural residential transactions, with this final rule, these transactions will now require an evaluation. View the final rule. For more information, contact ABA’s Sharon Whitaker.

Crapo to Take Up Cannabis Banking Legislation

The Senate's version of a cannabis banking bill could include additional measures not included in the SAFE Banking Act, which passed the House by a bipartisan vote last week, Mike Crapo said last week. Those additions could include anti-money laundering measures, protocols for preventing “legacy cash” at unbanked marijuana businesses from being mixed with laundered funds, clarification on interstate banking and measures to address the safety of cannabis products, he told Politico.

Crapo indicated that he hopes for a Senate vote on his version of the bill by the end of the year. "This is an issue in which I have seen strong support not only across the country from various banking institutions—even the small community banks in states that don't have the issue—but also among colleagues on both sides of the aisle," Crapo said. "I think there will be good support for it." Read more

Congress Approves Funding for SBA 7(a) Loan Program

The Senate last Friday approved a $99-million subsidy to fund the Small Business Association’s 7(a) loan program for the 2020 fiscal year, successfully avoiding a shutdown of the program that would have otherwise taken place on Oct. 1. The House approved the funding earlier this month.

ABA, through participation in the Small Business Access to Capital Coalition, called on congressional leaders earlier this year to address the 7(a) program funding gap. The association also raised several concerns about the subsidy calculation process, which they argued has unnecessarily driven up the cost of 7(a) loans for borrowers and lenders. Read the letter.

ABA Urges Bankers Comments on Disparate Impact Rule

With the comment deadline coming up for the Department of Housing and Urban Development’s disparate impact rulemaking, ABA is encouraging all bankers to file comments supporting the proposal and urging HUD to finalize it expeditiously. The comment deadline is Oct. 18.

The proposed rule would revise Fair Housing Act regulations to conform them with a 2015 Supreme Court ruling that shifted the burden of proof to reduce the number of frivolous claims brought under the legal theory of disparate impact. HUD’s proposal would add five elements that must be included in disparate impact claims and offer three methods for defendants to rebut these claims.

ABA is providing talking points to help bankers prepare their comment letters, although letters do not need to be more than a simple statement of support for the proposed rule. ABA members are also invited to join a conference call to preview the association’s own comments on Wednesday, Oct. 9, at 1 p.m. CDT. To join the conference call, dial 866.394.1482 and provide the operator with conference number 9186004.

Podcast: From Financial Crisis to Digital Transformation

“There are so many ways we can bring banking to people,” says Ryan James, president and CEO of Surety Bank in Deland, Fla. “Community is not bound by geography. I look at community as shared interest.”

James became one of the youngest bank CEOs in the country when he took the helm of Surety Bank in 2009—but in the midst of the fallout from the financial crisis, with Florida’s economy hit especially hard. On the latest episode of the ABA Banking Journal Podcast—sponsored by Money Concepts International—James explains how he and his team led Surety Bank through the post-crisis period and positioned it for success in 2019 with a focus on digital transformation.

James talks about Surety Bank’s transition to an emerging cloud-based core provider and the launch of the company’s Booyah! Bank digital brand, which enables Surety Bank to serve a customer base well beyond its Florida brick-and-mortar footprint. Listen to this episode.

National Flood Insurance Program Extended to November 21

The Senate last week passed a stopgap spending bill that includes an extension of the National Flood Insurance Program and the Export-Import Bank through Nov. 21. Both programs were originally set to expire at midnight on Sept. 30. The bill—which was previously passed by the House—was signed by the President last Friday. 

ABA Offers Free Resources for Cybersecurity Awareness Month

In recognition of National Cybersecurity Awareness Month in October, ABA has developed a number of resources to help you promote consumer awareness about cybercrime. The campaign materials focus on how consumers can protect themselves, their small businesses, their identities and their mobile devices online.

The resources—available at—include a social media toolkit to help you communicate with your customers about cybersecurity, customizable tip sheets and news releases.

Also in October, ABA’s Get Smart About Credit Day will include a “protecting your identity” component that will coincide with ABA’s National Cybersecurity Awareness Month efforts. Learn more about Get Smart About Credit.

Compliance Alliance

Compliance rules and regulations change quickly. For timely compliance updates, subscribe to Compliance Alliance’s email newsletters.

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.