Tennessee Bankers

This Week Newsletter

August 01, 2016 - Issue No. 1631

Primary Election Day is August 4

Early voting for the August 4 primary election closed Saturday, July 30. On Thursday, many races across the state will be decided for state and federal offices. View the list of candidates and voting locations at sos.tn.gov/elections. Contact Tim Amos or Amy Heaslet with questions on specific races.

CFPB Issues Proposals for Regulating Debt Collection

The Consumer Financial Protection Bureau issued an outline of proposals under consideration for updating the Fair Debt Collection Practices Act. While the proposals only apply to debt collected by third parties, the bureau has indicated its intention to address first-party debt collection "on a separate track."

Among other things, the proposals call for caps on debt collection attempts and require collectors have sufficient information before attempting to collect a debt. Debt collection companies would be required to clearly disclose debt details to the consumer and provide an easier dispute process.
Along with the proposal, the bureau released a study of third-party debt collection operations. Read the proposals. Read the CFPB study.

CFPB Extends Comment Deadline Small-Dollar Credit Proposal

The Consumer Financial Protection Bureau has extended the comment deadline on its small-dollar lending proposal to Oct. 7. The proposed rule would sharply curtail short-term, small-dollar consumer lending by defining loans as "abusive and unfair" if lenders fail to reasonably determine borrowers' ability to repay the loan or satisfy an exception.

TBA and the national banking trade associations are evaluating and preparing comments as to how, with appropriate regulation, banks can play an important and growing part in meeting the needs of small dollar borrowers.

CFPB Updates TRID Resources

The Consumer Financial Protection Bureau has updated its resource page for the TILA-RESPA integrated disclosures to include updates to its question index. The updates include questions that were addressed during two TRID webinars held by the bureau this spring. View the resource page.

CFPB Offers Resources on HMDA Final Rule

The Consumer Financial Protection Bureau has updated its website with free resources to help bankers comply with the final HMDA rule. The resources include a webinar that provides an overview of the rule, the data submission process and key dates. The CFPB also offers a transactional coverage chart that bankers can use when determining whether a transaction is reportable under HMDA, and a sample data collection form. Access the resources.

Compliance Alliance Hot Topic Question

Q: Are deposits made through a customer's mobile phone (remote deposit capture) subject to Regulation CC?

A: No. Checks deposited through a mobile device such as a phone (remote deposit capture) are not subject to the funds availability requirements of Regulation CC.  A check deposited through a mobile device is not a check as defined in Regulation CC. Regulation CC - 1029.2(k)(1) defines a "check" as "a negotiable demand draft drawn on or payable through or at an office of a bank." A picture of a check transmitted to the bank using the customer's mobile device is not "negotiable" and therefore not a check under Regulation CC's definition of the term.  These types of deposits also do not fit in the ACH  or wire definition for Reg CC purposes.

That being said, many banks apply the bank’s funds availability policy to these types of deposits.  Keep in mind, the bank should disclose their funds availability policy with regard to checks deposited through a mobile device, because customers might presume that such items would be subject to the normal check availability schedule, unless they are specifically advised otherwise, and then rely on that expectation. Many banks explain the funds availability of these items in the bank’s mobile banking agreement where customers might be more likely to notice the policy.
Owned by 27 State Bankers Associations, Compliance Alliance provides an all-inclusive compliance solution for banks of all sizes. Membership offers three main areas of support including downloadable documents, a compliance hotline and review services. Learn more on a free membership demo webinar this Tuesday or Thursday.

Welcome New TBA Associate Members

TBA welcomes new associate members BankSmart in the catagory of Consultants, EndPoint Technology in the category of Security Services, The Finley Group in the category of Consultants, and Guidant Partners in the category of Information Technology. Please thank these companies for their support of the Tennessee banking industry through membership and learn more about all of TBA's associate members in our online directory.

Training the Credit Analyst

Training the Credit Analyst, scheduled on August 23 and 24 at Nashville's TBA Barrett Training Center, gives lenders and analysts the tools required to understand and use financial information provided by borrowers. It is an excellent preparation for attending The Southeastern School of Commercial Lending in May 2017. The early registration deadline for this program is August 9. Click here to register.

Basic Consumer Lending

Basic Consumer Lending, scheduled on August 25 and 26 at Nashville's TBA Barrett Training Center, was developed for those charged with organizing and managing consumer loans. It addresses credit decision-making as well as the human relations aspect of lending. This program is an excellent preparation for those who want to attend The Southeastern School of Consumer Credit in March 2017. The early registration deadline for this program is August 11. Click here to register.

Penny Powlas Celebrates 25th Anniversary with TBA

On Friday, July 29, TBA staff celebrated Penny Powlas' 25th anniversary with the Association. Throughout the years we have enjoyed her dedication and enthusiasm for helping our member bankers. Click here to visit TBA's Facebook page to see a photo from the celebration.

TBA Membership Meetings Kick off August 15

A highlight of the year for the newly elected TBA Chairman and the TBA team is the opportunity to travel across the state to meet with the majority of our members during Membership Meetings. Held this year August 15–19; 24 and 25; we hope that you will make plans to join your chairman, Gordon Majors, for one or more of the meetings that is most convenient for you. In addition to an opportunity to gather with friends and industry partners, the TBA team will review the initiatives that are the present focus of your association. View the dates, locations, and register today.

TBA On the Road

  • Stacey Langford visits members in West Tennessee.

See where TBA goes while "on the road" by following  @TNBankers.