Banking News

NCUA Set to Vote on Membership Rule October 21, 2016

The National Credit Union Administration board indicated on Thursday that it will vote next Thursday on its controversial proposal expanding fields of membership for credit unions.

As proposed, the rule would render the concept of a common bond between credit union members meaningless, AmBA has said. Credit unions would be able to serve “local” and “well-defined” areas that stretch the definition of both terms beyond reason -- including labeling whole states as local areas in some cases -- and open the door for credit unions to redline underserved urban cores in favor of wealthy suburbs.

AmBA is prepared to sue if necessary to force NCUA to act in accordance with federal law. AmBA has thrice before sued NCUA, winning cases in which the cheerleading regulator exceeded its congressional authority at the behest of the credit union industry.

Nichols Meets with Lew, Senior Officials at White House Meeting October 21, 2016

AmBA President and CEO Rob Nichols represented AmBA at a high-level White House meeting yesterday on cybersecurity in the financial sector. Convened by Treasury Secretary Jack Lew and Lisa Monaco, President Obama’s top aide for homeland security, the meeting focused on the coordination of preparations and responses to cyber threats.

The group also reiterated their commitment to public-private cooperation in financial sector cybersecurity. The Financial Services Sector Coordinating Council, a private-sector group in which ABA plays a leadership role, detailed the establishment of a CEO-level cybersecurity council to meet with government counterparts.

Other meeting participants included Deputy Treasury Secretary Sarah Bloom Raskin, National Economic Council Director Jeff Zients, Federal Reserve Chairman Janet Yellen, Comptroller of the Currency Thomas Curry, FDIC Chairman Martin Gruenberg and Securities and Exchange Commission Chairman Mary Jo White. Bank chief executives present included U.S. Bancorp’s Richard Davis, BB&T Corporation’s Kelly King, Discover’s David Nelms and SunTrust Banks’ Bill Rogers. Click here to read more.

New Video Highlights Importance of Lawmaker Engagement October 21, 2016

AmBA released a new video highlighting the importance of establishing personal relationships with lawmakers through direct advocacy. The video offers a glimpse into a recent visit by Rep. Andy Barr (R-Ky.) to Central Bank & Trust in Lexington, Ky. During his time at the bank, Barr met with bank employees, customers and members of the community who shared personal stories of how they are affected by banking regulations.

“One thing about politicians -- you’ve got to go to them. You’ve got to tell them what the problems are and say ‘we need help.’ A lot of bankers have a hard time doing that,” says Central Bank & Trust chairman, president and CEO Luther Deaton. “You have to reach out, you have to be active… once you build that trust, they’ll take your phone calls and they’ll talk to you.”

AmBA encourages all bankers to invite lawmakers to visit their institutions as part of its ongoing Take Your Lawmaker to Work initiative. Bankers can visit to access free resources for hosting a successful lawmaker visit, including invitation templates, step-by-step instructions and tips for follow up communication. Click here to watch the video. Click here to learn more about Take Your Lawmaker to Work.

Free Article Focuses on Innovation in Ag Lending October 13, 2016

As commodity prices remain depressed and agricultural economies face difficult times, a new article in the ABA Banking Journal focuses on innovative approaches banks are using to meet customers’ needs and keep rural economies moving.

“It’s no secret that the ag economy is in tougher times right now,” says Minnwest Bank’s Dan Koster. “What we’re doing is educating our borrowers and customers about proper debt structures, proper performance matrices, and really trying to help them to structure their businesses and finances so that they can withstand any downturns in the economy.”

The article also explores ways that ag bankers provide customers with long-term fixed rates through ABA-endorsed Farmer Mac programs to position them well for after the hard times pass. Read the article.

CFPB Updates TRID Compliance Guide October 13, 2016

The Consumer Financial Protection Bureau yesterday issued an updated small entity compliance guide to the TILA-RESPA integrated disclosures. The guide incorporates guidance from recent compliance webinars on records retention; construction loans; disclosures of seller-paid costs; and form completion, formatting, revision and delivery, among other topics. The bureau also issued a revised guide to the Loan Estimate and Closing Disclosure forms. Download the compliance guide. Download the updated guide to forms.

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At least seven banks across the country received demand letters that challenge their website compliance with Web Content Accessibility Guidelines. We have reason to believe the number of these lawsuits will rapidly climb. Arkansas banks need to be on alert.

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FS-ISAC Security Update

FS-ISAC Security Information Available to ABA Members

ABA members can now access FSā€ISAC security threat information via the FS-ISAC Weekly Risk Summary Report, designed for community institutions to deliver timely and actionable information on significant security threats.

Click here to access the most recent Weekly Risk Summary Report.