SDBA eNews

June 13, 2024

ABA Newsbytes: Nichols Warns about State Efforts to Undermine National Bank Preemption

ABA newsbytesABA President and CEO Rob Nichols yesterday told bankers that ABA will remain vigilant about legislation at the state level that threatens to undermine national bank preemption. In his opening remarks at the ABA Risk and Compliance Conference in Seattle, he observed that “we’re seeing both blue states and red states pass laws that would interfere with national bank operations, violate preemption and tread squarely onto the OCC’s turf.

Nichols added that “ABA and the state association alliance raised these concerns in a letter to the OCC last month and joined our fellow trade associations in a Supreme Court brief in support of national bank preemption earlier this year. We will continue to use the advocacy tools at our disposal to protect this fundamental principle of banking in the United States.”

Nichols also highlighted the organization’s efforts to help banks confront a “truly staggering onslaught of new rules and ‘guidance’ documents, many without any real justification or need. No one knows better than this audience just how costly and complex these rules will be to implement.” Noting that “we won’t ever hesitate to use every available tool to push back against efforts to undermine the strength and vitality of our banking sector,” Nichols provided an update on ABA’s four active lawsuits challenging the CFPB’s unfair, deceptive, or abusive acts or practices manual; the CFPB’s Section 1071 final rule; the interagency final rule on the Community Reinvestment Act; and the CFPB’s final rule on credit card late fees.

“We’ve seen regulators reaching far beyond the bounds of their authority,” Nichols said. “We’ve seen them finalize rules that dramatically underestimate compliance costs, and ignore valid concerns raised by industry stakeholders. And in a few cases, we’ve seen them try and twist the law to suit their own political agendas. 

ABA Banking Journal Podcast: Building Successful Careers in Bank Risk and Compliance (Part 1)

ABA podcastThe latest episode of the ABA Banking Journal Podcast, sponsored by Alkami, features part one of a two-part conversation with Kelly and Imm. Kelly and Imm discuss their experience across different institutions. They also discuss the evolving role of technology in risk and compliance professionals and how soft skills contribute to risk and compliance career development. Listen to this episode.

CISA NEWS: Windows Recall: How it works, how to turn it off and why you should

Alex Wawro | June 9, 2024


It's been weeks since the Microsoft Build 2024 developer conference in Seattle, yet one of the big new Windows 11 features unveiled at that event is still in the news. I'm talking of course about Windows Recall, a new feature coming to Copilot+ PCs on June 18 that promises to save images of your desktop every few seconds, scan and analyze them with AI help, then make that data searchable using natural language. Microsoft has decided to call it Windows Recall (preview) when it debuts, which means the company doesn't consider it finished yet and will (hopefully) update it in response to user feedback. That's a bit of good news because Windows Recall could be a huge privacy risk for users, even if it could also be hugely useful.

There's been a lot of wailing and gnashing of teeth over this feature across the Internet, especially among tech journalists and privacy advocates (rightly) concerned that all this easily searchable personal data on your PC will be an attractive target to bad guys. Microsoft has taken steps to address said concerns, including what reads like an emergency response to the backlash in a blog post outlining how the company is going to be stricter and more careful with Recall — but is it enough? Read full article.

ABA Banking Journal: CFPB Issues Rule Proposing the Removal of Medical Bills from Credit Reports 

June 11, 2024
ABA banking journal

The CFPB yesterday proposed a rule to prohibit lenders from considering medical debt and remove medical bills from most credit reports. The goal, the bureau said, is to increase privacy protections, increase credit scores and loan approvals, and prevent debt collectors from using credit reporting “to coerce people to pay.” The CFPB began the rulemaking in September last year, and it is expected that the bureau may issue additional proposals to implement other credit reporting changes the CFPB discussed at that time.

The CFPB’s proposed rule would prohibit credit reporting agencies from sharing information about medical debts with lenders and prohibit lenders from making lending decisions based on medical information. In 2003, Congress restricted lenders from obtaining or using medical information, including information about debts, through the Fair and Accurate Credit Transactions Act. Federal agencies subsequently issued a special regulatory exception to allow creditors to use medical debts in their credit decisions. The CFPB proposes reversing this policy. In support, the CFPB cited its own research claiming that information about medical debt was less predictive of creditworthiness than other types of debt. Notably, that report did not find medical debt had no predictive value.

The proposed rule would define "medical debt information" to exclude debt owed to third-party lenders and instead apply to debt the consumer owes directly to a healthcare provider, including after such debt has been sold on the secondary market. As a result, the rule would not prohibit use or reporting of information about debts for medical care charged to credit cards, including medical credit cards offered specifically for the payment of medical services. The CFPB issued an RFI last year seeking input on medical payments products. ABA’s comments at the time highlighted the banking industry’s concerns with any proposal that would reduce the availability of credit to pay for healthcare. Read full articleRead ABA’s comments. Read the proposed rule.

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FDIC and HUD Host Bankers Roundtable Supporting Affordable Housing in Sioux Falls

Thursday, June 27, 2024 | 8:00am-11:00am CDT

FDIC HUDIn recognition of Homeownership Month, The Federal Deposit Insurance Corporation (FDIC) and the U.S. Department of Housing and Urban Development (HUD) will host a bankers roundtable focused on supporting affordable housing in Sioux Falls, South Dakota and surrounding areas.

The event will support equitable homeownership opportunities in low-and moderate-income, underserved, and rural communities and focus on promoting collaboration between financial institutions and affordable housing community development organizations. Speakers will outline innovative best practices and success stories that have created affordable housing throughout South Dakota.

Who should attend: Financial institutions, CDFIs, federal, state and local government, non-profit organizations, community-based organizations, and other stakeholders interested in opportunities to support  affordable housing in Sioux Falls, South Dakota. 

Information & Registration

Women of Impact Award - Nominate by August 2

Women of ImpactThe SDBA Women of Impact Award has been established to celebrate South Dakota Bankers Association members who have made significant contributions and positive impacts in their organizations, communities and industry. These awards will be presented at the 2024 Lead Strong: Women in Banking event on September 26 in Sioux Falls, SD.

Nominate here!

2024 Salary & Cash Compensation Survey

Blanchard Consulting Group and the SDBA would like to invite you to participate in the 2024 Salary & Cash Compensation Survey!

The survey gathers salary and cash compensation (salary + annual cash incentive/bonus + commissions) for approximately 30 executive positions and over 150 middle management and staff level positions. Data cuts will be broken out by asset size and region when there is a large enough sample size.

Survey Pricing:
• SDBA Member Participant: $300
• SDBA Member Non-participant: $550

Survey Instructions:
1. Click on the link (2024 Salary and Cash Compensation Survey Link) or visit Blanchard Consulting's website to access the secure survey link.
2. Download the Excel file and complete the survey.
3. Email the completed survey to [email protected] or utilize the secure upload link (Secure Upload Link) (also available on the Blanchard website) by Friday, June 21st.

Upcoming Events

Fraud Academy | August 6-8, 2024 | Virtual


The Fraud Academy is a “first of its kind” two-day school that will train employees at all levels of your institution on fraud risk and what they can do fight it. This program will feature speakers from the United States Secret Service, attorneys from the United States for the Eastern District of Kentucky, Lexington Police Department, and other current and former law enforcement experts that will share their experiences and insights to best educate your bankers on how to mitigate fraud risk and ultimately reduce your fraud loss.  

Information and Registration

Virtual Credit Analyst Development Program | October 7- November 21, 2024

Credit Analyst Program

The Credit Analyst Development Program is designed for credit analysts, credit officers, credit administrators, commercial loan officers/managers, loan review officers, branch managers and management trainees. In order to obtain the greatest benefit from this course, participants should have a general understanding of accounting and have a basic understanding of financial statement and credit analysis.

Having learned how to interpret and analyze a bank’s financial statements, participants will gain deeper insight into the factors affecting bank performance. Later sessions in this course will address ways in which performance may be hindered or improved by funding strategies and risk management. Ultimately, participants will be able to review a bank’s financial statements to identify strengths and weaknesses and be able to recommend changes that will lead to improved performance.

In the final session of this course, participants will put what they have learned into practice. Participants will analyze a new data set, rate the bank’s performance and suggest strategic adjustments that might benefit the bank.

Information and Registration

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Question of the Week

Q: If an application for a second home started with an individual applicant but mid-way through the applicant wants to add a spouse to the application to facilitate the approval, do I need to initiate a new application with a new application number or can I just use the initial application and keep the same loan number, then resent the early disclosures?   

A:  Ultimately, the bank's course of action in this situation will likely depend upon whether it is a co-signer or a co-borrower that is added, as well as any applicable internal/investor guidelines. In general, this tends to be more of a procedural question based upon your internal/investor policies. The regulations provide the bank discretion as to when the bank may either add a co-borrower or co-signer from the application or when the bank should close out an application and start the process over. Speaking to many different banks about this process, it seems that many banks are all over the place with exactly how they accomplish this because it's really about what fits the bank's processes best. Some member banks have indicated that they always close out files and make the applicant re-apply (with or without the co-borrower/co-signer, whatever the case may be) because it's better for their systems and it makes things easy to follow and allows for a better workflow. Further, other member banks have indicated that they tend to keep the files open and make changes and add and remove co-applicants because that system is better for their workflow, software, processes, etc., so, ultimately, the bank is free to do it however you'd like, as always keeping in mind Fair Lending and UDAAP considerations.

Learn how to put compliance management solutions from Compliance Alliance to work for your bank, by contacting (888) 353-3933 or [email protected] and ask for our Membership Team.

For timely compliance updates, subscribe to Bankers Alliance’s email newsletters.


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