SDBA eNews

August 26, 2021

Registration Open for SDBA's NEXT STEP: Emerging Leaders Summit

Photo of emerging leaders.NEXT STEP: Emerging Leaders Summit is designed to help cultivate, connect, engage and empower South Dakota’s future bank leaders. The SDBA will hold the 2021 NEXT STEP: Emerging Leaders Summit on Oct. 26-27 at the Hilton Garden Inn Sioux Falls Downtown in Sioux Falls.

This event will encourage emerging bank leaders to find and express their voices within their organizations, communities and the banking industry and provide opportunities to network and exchange ideas with other industry professionals. It will also increase emerging bank leaders’ knowledge of topics of interest to the banking industry and promote involvement and advocacy. 

Wednesday's sessions include: The Challenge of Leadership, Having Tough Conversations in the Workplace, Buzz Sessions—Speed Networking, What Not to Say: Six Categories of Statements to Stop Saying, Lessons in Leadership, Extra Credit: Banking in the Time of COVID-19, Self-Management vs. Crisis Management and Ignite Sessions. A reception will be Tuesday evening at Hotel on Phillips in Sioux Falls. 

See the full agenda and register

ABA Issues FAQs on Reg X COVID-19 Rules

ABA has published a set of FAQs about the CFPB’s amended Regulation X mortgage servicing rules intended to assist borrowers affected by COVID-19. The rule is effective Aug. 31 and temporarily permits mortgage servicers to offer certain loan modifications to borrowers experiencing a COVID-19-related hardship.

The FAQs include information about portfolio mortgages, temporary procedural safeguards and early intervention requirements. For more information, contact ABA’s Teshale SmithRead the FAQs.

FHFA Updates Guidelines for Adverse Classification of Assets at GSEs, FHLBs

The Federal Housing Finance Agency yesterday updated its guidelines for adverse and non-adverse classification of assets at Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The guidelines describe sound practices for managing credit risk at the regulated entities. FHFA also outlined procedures for listing assets for special mention. The advisory bulletin issued by FHFA rescinds and replaces several previously issued bulletins on asset classifications.

The bulletin outlines how to make adverse classifications for single-family residential mortgage loans, multifamily residential mortgage loans, other real estate owned, other assets including off-balance sheet credit exposures and FHLB advances. Read the bulletin.

ABA's Benda Answers FAQs on Delta Variant, COVID-19 Risk Mitigation

In a new resource guide developed at the request of bankers, ABA SVP Paul Benda answers several frequently asked questions about the recent surge in coronavirus cases connected to the Delta variant and discusses how it has changed the game. He also offers several strategies banks can use to mitigate heightened risks.

“Delta has overtaken all other coronavirus variants to become the dominant strain worldwide,” Benda writes. “[I]t’s clear that Delta is outcompeting the other strains and appears to be much more infectious.”

Among other things, Benda discusses addresses COVID-19 transmission risk in an outdoor environment, how to filter air in an office environment, effective use of HEPA filters, requiring vaccinations for bank employees and how the Delta variant could affect unvaccinated children. View the resource guide.

ABA Opposes Bill to Expand Credit Union Membership

In a letter to House Financial Services Committee leaders on Monday, ABA expressed opposition to a bill that it called a “backdoor effort by the credit union industry to expand its membership rolls at the expense of tax-paying banks.” The Expanding Financial Access for Underserved Communities Act would allow credit unions to further expand the already broad field of membership requirements under the premise of promoting access to banking services for low and moderate-income (LMI) communities.

However, ABA pointed out that credit unions “have ample opportunity to serve additional communities under their existing authority,” and that “they have not stepped up” to provide services to LMI communities. Specifically, ABA pointed to recent data suggesting that credit unions tend to open more branches on net in upper and middle-income census tracts and close more branches in LMI areas. They are also not held to the same stringent Community Reinvestment Act requirements that taxpaying banks adhere to.

The Association added that the National Credit Union Administration’s recent expansions of credit union field-of-membership rules already provide ample tools for credit unions to serve underserved communities if they so choose. “NCUA rules require communities added to a credit union’s field of membership to be geographically contiguous to a credit union’s existing footprint, a condition that does not appear to be required by this legislation,” ABA noted. “This could suggest that the real motivation for this legislation is to enable credit unions to establish out-of-market footprints, rather than to serve low-income people close to home.”

The bill comes amid a concerning increase in credit union acquisitions of taxpaying banks—with more than 50 such transactions announced since 2013. ABA continues to call for CRA-like regulatory requirements for credit unions and for Congress to take action to block acquisitions of taxpaying banks by tax-exempt institutions. Read the letter.

Trade Groups Warn Against Re-codifying 2013 Disparate Impact Rule

ABA and three other banking and mortgage groups on Tuesday warned that re-codifying the Department of Housing and Urban Development’s 2013 disparate impact rule would run afoul of binding Supreme Court precedent. HUD proposed to recodify the 2013 rule, which would effectively nullify the previous administration’s September 2020 changes to that rule to align it more closely with the Supreme Court’s 2015 decision in Texas Department of Housing and Community Affairs v. Inclusive Communities Project, which recognized disparate impact liability under the Fair Housing Act and explained the legal requirements for disparate impact claims.

The trade groups pointed out that HUD’s proposed recodification of the 2013 rule would reinstate a legal standard that is inconsistent with the Supreme Court’s ruling and highlighted several specific areas of inconsistency. The letter is intended help ensure that HUD codifies a standard of disparate impact that is fully consistent with Supreme Court precedent and implements the Fair Housing Act’s requirements with a clear legal framework to address unlawful discrimination.

The trade groups also emphasized that changes to the rule with each new administration creates uncertainty for industry and fair housing advocates, and undermines the Fair Housing Act’s goal of expanding availability of housing including mortgage credit. Read the letter. For more information, contact ABA’s Kitty Ryan.

Deadline Nearing to Order 2022 Scenes of South Dakota Calendar

Image of Scenes of South Dakota CalendarThe SDBA's Scenes of South Dakota Calendar features photos of South Dakota submitted by South Dakota bankers, their family members and customers and is exclusive to SDBA member banks and associate members. The deadline to place an order for the 2022 Scenes of South Dakota Calendar is Wednesday, Sept. 1. 

The calendars are a great opportunity to thank customers for their business and promote your bank or business. Your bank, branch or business' logo and name can be printed on each calendar to display in homes and businesses all year long.

Calendar orders are due by Sept. 1 to get the low price of $1.45 per calendar. Each order will have an additional $25 production charge. After Sept. 1, the price is $1.71 per calendar. Orders cannot be accepted after Sept. 15, 2021. Calendar order form.

South Dakota Land and Lending Conference to be Held Sept. 10

The SDSU Ness School of Management and Economics is bringing together business-savvy, innovative mindslawyers, brokers, lenders, appraisers, abstracters and more—to learn, grow and explore development possibilities in South Dakota. 

The inaugural South Dakota Land and Lending Conference will be held Sept. 10, 2021, in Sioux Falls at the Denny Sanford PREMIER Center. This full-day summit will include engaging keynote speakers and panel discussions, breakout sessions and networking opportunities.

The cost is $50 per person and $25 for students. Learn more and register



Question of the Week

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Contact Alisa Bousa, SDBA, at 605.224.1653 or via email.