Tennessee Bankers

This Week Newsletter

January 25, 2016 - Issue No. 1604

2016 State Legislative Outlook for TBA

Last Thursday marked the bill filing deadline for the both the Senate and House. By the end of the day, more than 1,200 bills had been filed for consideration during the second half of the 109th general assembly. TBA's government relations team reviewed the bills and identified the following as top priorities for the banking industry. 
SB 1972 (Tracy) / HB 1894 (Hazlewood) – Small Checks Written to Estates
This is TBA legislation that would increase the allowable amount of checks written to a decedent with no estate open that a bank may negotiate from $2,500 to $15,000. It would also increase the amount from $10,000 to $15,000 that a bank may pay to a personal representative or to pay funeral expenses when there is no executor of the estate.
SB 2397 (Overbey) / HB 2401 (Travis) – Remove HOA Super Priority Lien Status
This is TBA legislation that would remove the ability of an HOA-initiated foreclosure to extinguish a first mortgage lien, but provide HOAs a "payment preference" in foreclosure proceeds up to six months of delinquent HOA dues or one percent of the maximum indebtedness of the first mortgage or deed of trust. 
SB 2352 / HB 2084 (Dunn) – Enacts the Property Assessed Clean Energy Act
This legislation, which TBA opposes, would authorize local governments to enact Property Assessed Clean Energy (PACE) programs to provide financing for energy efficient improvements to real property. Under a PACE loan, payments would be collected in conjunction with property taxes for up to 20 years, would run with the land, and could not be eliminated by foreclosure of a property tax lien. 
For a more detailed update on bills of interest, please join TBA's bi-weekly conference calls held every other Friday. If you could like to participate, contact Amy Heaslet

Deadline for Military Lending Database Access – Feb. 1

Beginning Oct. 3, 2016, the new Military Lending Act regulations will require banks to determine military status for applicants applying for consumer credit that is not a mortgage or purchase money loan. The new rule provides a compliance safe harbor for lenders who verify military status through the Department of Defense database or a nationwide credit bureau.

Methods covered in the safe harbor include checking with the Pentagon's Defense Manpower Data Center database through its website, which will allow single or batched MLA verification requests with a 24-hour turnaround or, for a quicker response, directly accessing the DMDC database. However, because of limited resources, the DoD will initially determine which creditors have direct access based on creditors' volume.

By Monday, Feb. 1, bankers must email DMDC and advise DoD that the bank is interested in direct access to the DMDC database.

Lenders may also receive safe harbor protection through obtaining credit reports. The credit bureaus reported that the information will be an "add-on" to credit reports, and it is expected there will be a charge for the information. 

Commissioner Boyd Asks Tennessee Bankers to Complete Survey about Broadband Access

Tennessee Department of Economic Development Commissioner Randy Boyd is asking for Tennessee bankers to fill out a survey about broadband access in their local communities.
"Tennessee's economic future is directly tied to our broadband access," Boyd said. "Broadband access impacts our quality of life, educational opportunities, healthcare and our businesses' ability to compete. We must measure who has broadband Internet access and how they are using it. Help us make sure every Tennessee community has access to broadband by taking this assessment."
The assessment can be found here. One representative from each bank is asked to fill out the "I Represent a Business" survey and all bankers are asked to fill out the "I Represent a Household" survey. For any questions, please email Amanda Martin.

Bankers Urged to Oppose CU Membership Proposal

TBA is urging all bankers to send personalized comments to the National Credit Union Administration opposing the agency's plan to expand the already loose fields of membership from which federal credit unions can draw their customers.

Under NCUA's wide-ranging proposal, FCUs would be able to apply to serve combined statistical areas, which are larger than metropolitan areas; areas contiguous to their existing core-based statistical areas; and entire congressional districts, including at-large districts that encompass entire states. NCUA would also facilitate easier conversions to community charters, easier expansion of fields of membership in rural areas and expansion of FOMs for "service facilities."

Comments are due by Monday, Feb. 8. Letters can be submitted via email to regcomments@ncua.gov and should include in the subject line: "[Your name] Comments on Proposed Rulemaking Regarding Associational Common Bond". 
To read prepared comments by ICBA, click here. To read prepared comments by ABA, click here, or review ABA's talking points here.

CFPB Seeks Bankers for Advisory Councils

The CFPB is accepting applications for positions on three advisory panels, including its Community Bank Advisory Council. The council, which meets four times per year, is intended to provide the bureau feedback from banks with less than $10 billion in assets. Council members are named to two-year terms. Applications for the council are due Feb. 29. Click here to read more and apply.

Join us for the TBA Legislative Reception

Returning to War Memorial Auditorium, the TBA Legislative Reception will be held Wednesday, Feb. 24 from 5 p.m. - 7 p.m. in Nashville. Preceding Credit Conference, this unique event provides the opportunity for bankers to engage with their legislators in a casual setting while discussing issues of importance to the industry. With nearly every state legislator expected to attend, it is a great way to reinforce our engagement as an industry and your relationships with elected officials. The TBA has distributed invitations to each legislator; however we encourage bankers to contact legislators letting them know you look forward to seeing them at the event.

Online Cybersecurity Manager Certification Course Enrolling Now

The Certified Banking Cybersecurity Manager™ certification course will focus specifically on each element of the FFIEC Cybersecurity Assessment Tool, issued June 30, 2015. With the guidance of a cyber expert, students will complete the FFIEC Cybersecurity Assessment for your institution, build a solid foundation of understanding for the FFIEC guidance and gain the knowledge to better defend cybersecurity threats. This self-paced, online certification course begins March 14, 2016. Clcik here to learn more and register.

Early Registration Deadline for In-Bank Training Program Feb. 2

In-bank training is essential to ensure compliance with board-approved policies and departmental operating procedures. Understanding the content of bank forms and disclosures provided to depositors and borrowers is essential to compliance and customer relations. Training on bank-specific information must be done in the bank by knowledgeable employees. 

Through In-Bank Training: How to Train Staff Using Bank Policies, Procedures, Forms, and Disclosures, participants will learn techniques for conducting low-cost and high-impact in-bank training. Whether you are responsible for training hundreds of employees at multiple branches or less than 10 employees at one location, this workshop gives you the tools you need to get the job done. The program will take place Feb. 9 at the TBA Barrett Training Center in Nashville. 

Click here to register. Hurry–the early registration deadline is Feb. 2.

Writing Effective Credit Memorandums set for Feb. 17

It is more important than ever to effectively document your credit memorandums to include relevant information on the status of your customers' relationship with your bank. This would include the actions that have taken place and what recommendations you have for that customer once you have conducted a thorough analysis of the loan request. In Writing Effective Credit Memorandums you will cover what recommended materials, judgments and documented facts in the credit memo that you would need to substantiate your findings.

The seminar takes place Feb. 17 at the TBA Barrett Training Center in Nashville. The early registration deadline is Feb. 9. Click here to register.

TBA On the Road

  • Stacey Langford conducts member visits in middle Tennessee.
  • The first of three CEO Forums begin in Nashville.

See where TBA goes while "on the road" by following

@TNBankers or  #TBAontheroad

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