Tennessee Bankers

This Week Newsletter

February 15, 2016 - Issue No. 1607

Bankers Blast NCUA's Proposed Membership Expansion Rule

Thanks to efforts by Tennessee bankers and others across the country, the NCUA received more than 10,500 comment letters on its proposed rule to expand field-of-membership requirements for federal credit unions. NCUA estimates that over one-third of those letters came from bankers. The previous record for comment letters was 3,100 for the NCUA's member business lending rule last year.
TBA also joined 52 other state bankers associations and wrote a letter to the congressional taxation committees on Friday, Feb. 5, and urged them to "investigate the tax implications of the latest increase in powers" NCUA has proposed for credit unions. "The proposed changes should call into question whether the 82 year-old tax exemption is appropriate in the modern era," the groups said, calling for Congress to level the playing field between taxpaying banks and tax-exempt credit unions that are otherwise virtually identical. To read the state associations' letter, click here.

TN Senate Unanimously Passes TBA Legislation

The Senate on Monday passed by a vote of 32-0 TBA's legislation to increase the amount from $2,500 to $15,000 of a check that a bank may negotiate if written to a deceased person where no estate is open or one has already closed. The House version of the bill, HB 1894, was scheduled to be heard in the Civil Justice Subcommittee on Wednesday, but was deferred for one week to allow time for technical amendments suggested by committee members to be included. Once the House passes the bill, it will go back to the Senate for another vote to conform to the House version.

Executive Management Conference is Set for Lake Tahoe in October

The 2016 Executive Management Conference will be held October 9-12 at the Ritz Carlton Lake Tahoe. TBA will once again be hosting the meeting jointly with the Mississippi Bankers Association. More information will be provided later in the year.

Bipartisan Bill Introduced to Ease Call Report Burdens

Reps. Randy Hultgren (R-Ill.), Terri Sewell (D-Ala.) and Blaine Luetkemeyer (R-Mo.) on Tuesday introduced the Community Bank Reporting Relief Act (H.R. 4500), which would streamline bank reporting by permitting well-capitalized and highly-rated banks to file a short-form Call Report in the first and third quarters each year. The full Call Report would be required in other quarters. To read more, click here.

CU Tax Exemption to Exceed Nearly $27B over a Decade

In its proposed 2017 budget released last Tuesday. Feb. 9, the White House Office of Management and Budget pegged the credit union tax exemption at $26.8 billion over 10 years. The estimate includes a projection of steady growth in the credit union industry, with the taxpayer subsidy growing from $1.7 billion last year to an estimated $3.6 billion by 2025. To view the tax expenditure tables, click here.

Obama Launches Cybersecurity Action Plan

President Obama last week signed an executive order launching a Cybersecurity National Action Plan to help the federal government and businesses protect Americans from cyber attacks. As part of the administration's federal budget request, Obama is seeking $19 billion to fund the action plan.

The president's approach includes launching a new Commission on Enhancing National Cybersecurity to make recommendations; modernizing federal IT infrastructure with a new federal chief informational security officer; using public awareness campaigns to promote consumer uptake of multi-factor authentication; and launching a Federal Privacy Council to ensure the federal government better protects Americans' private data. To read more, click here.

CFPB Clarifies Tolerances for TRID Rule

The CFPB published a clarification to the TILA-RESPA Integrated Disclosure rule dealing with property taxes and property-related costs. The updated rule indicates that prepaid property taxes, homeowner association dues, condominium fees, and cooperative fees are considered charges paid for third-party services not required by the creditor and consequently not subject to tolerances. Previously, supporting text to the rule indicated that these fees were subject to a zero percent tolerance.

Under the TRID rule, tolerances limit the extent to which the final closing costs can exceed what is on the loan estimate. Fees considered zero percent tolerance may not be increased except for a valid change in circumstance. While no tolerance fees may change, the creditor must still estimate those fees using the best information reasonably available.

ABA Launches New Safe Banking for Seniors Program

American Bankers Association Foundation has launched its new Safe Banking for Seniors program, proudly supported by the Tennessee Bankers Association. All participating banks will receive event materials, lesson plans, and media outreach tools. The lesson plans focus on the following four topics: Identifying and Avoiding Scams; Protecting Your Assets by Preventing Identity Theft; Choosing a Financial Caregiver; and Acting as a Responsible Financial Caregiver.

Banks can register to participate in the program for free at aba.com/seniors. Not sure if you want to participate? Register for a free webinar on Wednesday, Feb. 24 at 1 p.m. CT to learn more about the program and the resources available.

Welcome New Associate Member

TBA welcomes new associate member Litewire, McMinnville, TN. Please thank this information technology company for their support of the Tennessee banking industry through membership and learn more about all of TBA's associate members in our online directory.

New Office Depot Store Purchasing Cards Available

Any employee of TBA member banks and associate member companies can receive discounted pricing on personal purchases at Office Depot retail locations or online. The new 2016 store purchasing card is available now for use at retail locations and will not expire. Taking advantage of the steep discounts online is easy. Employees can set up an individual account through the Employee Discount Program. If your company is not currently taking advantage of the great benefits extended through the program, we encourage you to take another look.

Exhibit Space Going Fast at TBA's Tradeshow Events

TBA offers two primary tradeshow events each year: Strategic Technology & Operations Conference, April 5-6, in Murfreesboro, TN; and Annual Meeting, June 5-7, in Charleston SC. These events have limited booth space still available for members, but they are going fast. To secure your booth for the Strategic Technology Conference or learn more, contact Susan Taylor. To secure space for Annual Meeting, contact Penny Powlas. Both halls will sell out.

Deadline to Submit PEP Awards Report Card Is March 4

Awards for excellence in TBA's Personal Economics Program (PEP) will be presented during the upcoming Young Bankers Division Leadership Convention, April 24-26 in Knoxville, TN. The deadline for reporting and completing presentations to qualify for the awards presented at the Leadership Convention is March 4, 2016.

Click here to submit your PEP activity report card. Activities reported after March 4 will not be recognized during the Leadership Convention awards ceremony, but will be counted towards Certificate of Banker Dedication or Certificate of Bank Dedication recognition at the 2015-2016 PEP year-end, May 31, 2016.

Submit Your Bank's Community Involvement, News, and Promotions to TBA

We want to know the latest news about your bank for possible inclusion in The Tennessee Banker magazine. Please submit text and photos to Tyler Nelson about the following items: 

  • Job promotion announcements
  • Bank celebrates milestone or receives an award
  • Opening a new branch
  • Community involvement

TBA On the Road

  • Stacey Langford conducts membership visits in West Tennessee.

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

@TNBankers or  #TBAontheroad

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