| | Banking Leaders Speak at American Mortgage Conference |
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| | On Monday, ABA President and CEO Rob Nichols addressed the opening session of the American Mortgage Conference in Savannah, Georgia, co-sponsored by ABA and the NCBA. With four active lawsuits against regulatory agencies, Nichols emphasized that filing a lawsuit is “not the first tool in the box. It’s the very last one.” |
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| | | Fraud Academy
August 6-8, 2024
Virtual Live Event partnered with other SBAs |
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| | The four lawsuits address Section 1071 of the Dodd-Frank Act, the CFPB’s UDAAP manual, the Community Reinvestment Act final rule and the CFPB’s late fees rule. Bob Broeksmit, the president and CEO of the Mortgage Bankers Association, who also served as a panelist during the segment moderated by NCBA president & CEO Peter Gwaltney, added that even when a proper regulatory process results in outcomes industry doesn’t like, industry deals with it. “But in these cases where you don’t follow the Administrative Procedure Act, you don’t have a viable result.” |
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| | The speakers also addressed the CFPB and Biden administration campaign against fees in business. “The way banks disclose fees and regulators oversee them is sharply different from airlines, Ticketmaster, etc.,” Nichols said. “Every industrial sector can charge fees for services; we believe banks can as well.” |
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| | | | Federal Legislative & Regulatory Update |
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| | McHenry Proposes Bill to Block Large Ransomware Payments |
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| | House Financial Services Committee Chairman Patrick McHenry and Rep. Brittany Pettersen (D-CO) have introduced the bipartisan Ransomware and Financial Stability Act. The bill would require financial institutions to notify the Treasury Department before making a ransomware payment, as well as prohibit payments of more than $100,000 without prior approval of law enforcement (or the president could waive the requirement if the payment is determined to be in the national interest). |
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| | The bill focuses on financial market utilities, large securities exchanges and certain technology service providers essential for banks’ core processing services, according to a summary of the legislation. The bill also would exempt from public disclosure most information or documents reported to law enforcement from financial institutions regarding a ransomware incident. |
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| | Financial Fraud with Counterfeit Passport Cards |
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| | FinCEN has issued a notice to financial institutions on fraud schemes related to the use of counterfeit U.S. passport cards. The notice provides an overview of typologies associated with U.S. passport card fraud, lists select red flags to assist financial institutions in identifying and reporting suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act. |
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| | FDIC Strategy for GSIB Resolution |
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| | The FDIC has released a new report that explains how it will manage the resolution of a global systemically important bank, should the situation arise. The paper stresses that the FDIC will hold management responsible for the failure, allocate losses to shareholders and creditors, and return assets and viable operations to private sector control as soon as possible. |
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| | The report also states that consistent with statutory obligations, all losses would be borne by the private sector, primarily the GSIB’s former shareholders and unsecured creditors, and not taxpayers. |
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| | Push to Eliminate Credit Union Tax Exemption |
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| | In a new interview, Scott Hodge, senior policy advisor at the Tax Foundation, called for the elimination of the credit union tax exemption, saying it has outlived its usefulness. “I think 90 years of subsidies is enough. If you can’t exist for 90 years without a subsidy, shame on you,” Hodge told the newsletter Washington Credit Union Daily. He added, “You can’t have a healthy commercial banking system competing with a nonprofit, tax-exempt banking system.” |
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| | | A new 51-page Treasury Department report based on interviews with banking industry experts and industry groups focuses on the current state of artificial intelligence-specific cybersecurity risks in financial services, including an overview of current use cases, best practices recommendations, challenges and opportunities given the current environment. Section 5.5 of the report includes a list of questions that banks should consider asking their vendors that offer AI systems, or products and services relying on AI systems. |
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| | CFPB Credit Card Late Fees Rule |
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| | National banking and credit union associations are requesting passage of two resolutions to overturn the CFBP’s final rule on credit card late fees. Senate Joint Resolution 70 and House Joint Resolution 122 would overturn the rule if passed by both houses of Congress and signed by the president. | | “The CFPB's final rule would, by definition, make it easier for consumers to miss their credit card payments,” the associations said. |
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| | | “As more consumers pay late, there is a higher chance they will become delinquent. Ultimately, consumers experiencing delinquency will have this information reported to credit bureaus, leading to higher credit card balances carried month-to-month and lower credit scores, which can lead to far worse outcomes for consumers such as difficulty obtaining credit, or higher financing costs for housing, cars, and other necessary purchases.” | | The Senate version is cosponsored by both Senators Thom Tillis and Ted Budd. |
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| | VA Program to Help Veterans Keep Their Homes |
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| | The Department of Veterans Affairs will launch a new program in May to help more than 40,000 veterans experiencing severe financial hardship avoid foreclosure and stay in their homes. The Veterans Affairs Servicing Purchase (VASP) program will be a last-resort tool in the VA’s suite of home retention options for eligible veterans, active-duty service members and surviving spouses with VA-guaranteed home loans. Through the program, the VA will purchase defaulted VA loans from mortgage servicers, modify the loans and then place them in the VA-owned portfolio as direct loans. With VASP, borrowers will have a fixed 2.5% interest rate. | | Beginning May 31, mortgage servicers will identify qualified borrowers and submit requests on behalf of veterans based on a review of all home retention options available and qualifying criteria. |
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| | OCC Extends Comment Deadline on Bank Merger Rules |
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| | The OCC has extended until June 15 the comment period on its proposal to update its rules for business combinations to allow interested parties more time to provide comments. The proposal also includes a policy statement to clarify the OCC’s review of applications under the Bank Merger Act. |
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| | | State Legislative and Regulatory Update |
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| | The North Carolina General Assembly convenes on Wednesday, April 24, for the start of the 2024 short session. Legislators’ primary focus will be on making adjustments to the state’s two-year budget that began last July. They will also focus on bills that previously made crossover (passed the chamber in which they were first introduced by set deadlines but have not yet become law) and bills that still remain active under House and Senate rules. With limited exceptions, new bills cannot be introduced during a short session and instead would appear during the long session that begins in January of next year. Although there is no set adjournment time frame, legislators’ goal is to adjourn most legislative business by July 4. It has become common though for legislators to leave the door open as part of an adjournment resolution to potentially return for a couple of days at monthly intervals throughout the remainder of a year to take up other matters or address issues like gubernatorial vetoes. | | House Bill 410, the mistitled “Credit Union Update” – that the NCBA fundamentally opposes as it is far more than an update and would give NC state-chartered credit unions practically all the powers of banks without taxing or regulating them like banks – remains eligible to be considered. Since May of last year, the bill has been assigned to the Senate Rules Committee. It remains our priority #1 to stop this bill or remove all provisions in the bill that we oppose. As written, the bill would further exacerbate the competitive inequalities that have allowed the multi-trillion asset credit union industry to leverage their tax exemption to now include 426 credit unions nationally with $1 billion or more in assets and massively ramp up business lending. |
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| | | ICBA Capital Summit | April 28 - May 1, 2024 |
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| | | If you were not able to join the NCBA on Capitol Hill in March, you have another opportunity to support our industry. Please join community bankers from across the nation at the ICBA Capital Summit in Washington, D.C., April 28 to May 1. Hear from key policy makers on current banking industry issues and join NCBA president & CEO Peter Gwaltney for meetings with members of the North Carolina congressional delegation in their offices on Capitol Hill. |
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| | Bankers in Schools | May 6-10, 2024 |
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| | 128th Annual Convention-Limited Rooms Available | June 9-12, 2024 |
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| | Thank You to Our Annual Sponsors |
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| | Events from the NCBA are made possible thanks to the support of our annual sponsors: |
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| | | | | 128th Annual Convention Event Sponsors:
American Bankers Association, Antea Group, Capitala, Elliott Davis, Profits Resources Incorporated |
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| | | | Online Training from our Partnered Providers |
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| | Finding the time for crucial professional development can be a challenge. Luckily, NCBA members have access to online training material through our partnered training providers. Find your perfect webinar from ABA Training or OnCourse Learning today! |
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| | | Upcoming OnCourse Webinars |
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| | | - Cash Flow Analysis - April 22, 2024
- Overdraft Requirements & Best Practices - April 23, 2024
- 10 Ways Your Teller Can Prevent Check Fraud - April 23, 2024
- Controlling the Risks of Power of Attorney Documents - April 24, 2024
- Creating Exceptional Client Experiences - April 24, 2024
- FCRA Compliance: E-Oscar and Metro2 - April 25, 2024
- Lending 101 - April 25, 2024
- Navigating the FedNow® Rules and Regulatory Compliance Environment - April 25, 2024
- W-9s, W-8BENs and IRS Mismatches - April 30, 2024
- Bi-Monthly Compliance Briefing - April - April 30, 2024
- Open New Accounts Part I: Consumer Accounts - April 30, 2024
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| | | To All CRA Officers: Written by Steffani Jenkins, ICBA CRA Solutions |
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| | Have you ever been told "Bless your heart!" after talking about a challenging situation? Being from the South, this is what comes to mind when a banker tells me they've just been gifted with the title of "CRA Officer" along with all their other responsibilities. CRA requirements and compliance are evolving, therefore, learning the basics of CRA is critical. | | If your bank is a HMDA and/or small business reporter, the first thing your examiner will typically do at the onset of a CRA exam is perform a data integrity review of your HMDA LAR and your small business loans. If your error percentage is above 5%, this sets the stage for the CRA exam and…bless your heart! It’s probably not going to go well. |
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| | Review every loan to ensure the loan is coded correctly and that all reportable fields for CRA match the application or other supporting documentation. Depending on the volume of loans, this could be a full-time job, but the results are worth the money and effort to ensure your data is accurate. |
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| | | Bank of America: Q1 Earnings Snapshot |
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| | The bank, based in Charlotte, North Carolina, said it had earnings of 76 cents per share. Earnings, adjusted for non-recurring costs, came to 83 cents per share. | | The results surpassed Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 77 cents per share. |
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| | | In the business world, unfortunately, the rear-view mirror
is always clearer than the windshield. |
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| | | NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US |
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