Tennessee Bankers

This Week Newsletter

October 17, 2016 - Issue No. 1642

Court Finds CFPB Structure Unconstitutional

The CFPB's leadership structure of a single director who cannot be removed at will by the president is unconstitutional, according to a ruling by a panel of judges on the D.C. Circuit Court of Appeals last Tuesday, Oct. 11. Under the ruling, the bureau may continue to operate, but its director may be removed not just "for cause" but at the president's discretion.

The case, PHH Mortgage v. CFPB, arose in 2015, when CFPB Director Richard Cordray overruled an administrative law judge's recommendation for a $6.5 million fine against mortgage lender PHH for allegedly requiring unlawful kickbacks from mortgage insurers in violation of RESPA. Cordray demanded that PHH pay 18 times more—or  $109 million—for each time it accepted a kickback on or after July 21, 2008.

In addition to its constitutional claims about the bureau's structure, the court ruled in favor of PHH on all its statutory claims. The case is expected to be appealed, however, and may be heard by the full D.C. Circuit and appealed to the Supreme Court. Read the decision.

CFPB Updates TRID Compliance Guide

The CFPB last Wednesday, Oct. 12, 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.

Treasurer Lillard Appoints TN Bankers to Collateral Pool Board

Tennessee State Treasurer David Lillard, Jr., made appointments to fill three positions on the state Bank Collateral Pool Board, including two bankers and one representative of local governments.
Tyler Clinch, president/CEO, First Community Bank of East Tennessee, Kingsport, and Dane P. Smith, CFA/EVP/Corporate Treasurer, First Horizon Corporation, Memphis  were appointed as representatives of banks under $500 million and over $500 million in assets, respectively.
Also appointed was Dickson County Mayor Bob Rial.
The Collateral Pool Board has 100 participating Tennessee banks and secures more the $10 billion of state and local government deposits. For more information about the Bank Collateral Pool Board, click here.

Agencies Update Exam Procedures to Incorporate MLA Updates

The federal banking agencies on Oct. 7 issued updated interagency examination procedures for the amendments to the Military Lending Act rule, which extend MLA restrictions to cover credit cards, lines of credit, installment loans, and deposit advances offered to service members and their dependents. The new restrictions are now in effect. The compliance date for credit cards is Oct. 3, 2017.

The revised examination procedures are based on those developed jointly by other banking agencies. Early MLA compliance examinations will focus on financial institutions' compliance management systems and overall efforts to comply, including implementation plans, actions to update policies and procedures, staff training and handling of early implementation hurdles. The OCC said it will incorporate the revised procedures in its Comptroller's Handbook as a supplement to the interagency procedures. View the updated exam procedures.

Get Smart About Credit Day Is October 20

Participate in ABA Foundation's Get Smart About Credit campaign to help young Americans understand the long-term implications of today's financial decisions. The program focuses on these critical areas: paying for college, protecting your financial identity, and knowing your score. 
Get Smart About Credit Day is Thursday, Oct. 20. Banks should sign up now but may participate anytime throughout the year. Don't miss this opportunity to raise your bank's profile in the community and bringing the lessons of sound money management to young people.

TBA Endorses SIGNiX for Electronic Signatures

TBA and SIGNiX, the leading provider of cloud-based Independent E-Signature™ solutions which is headquartered in Chattanooga, announced a partnership in which the TBA will endorse SIGNiX's Independent E-Signature™ technology to all member banks.
SIGNiX's Independent E-Signatures are based on digital signature technology—a type of electronic signature platform that permanently embeds the legal evidence of a signature into the signed document. The formal relationship between SIGNiX and the TBA comes as a response to the rising adoption of digital practices among its member banks—and the need for secure, compliant e-signing capabilities.
"Our Independent E-Signatures actually carry more weight than a wet ink signature when it comes to intent and legal evidence—and of course they're far quicker and easier to capture than the pen-and-paper process," said Jay Jumper, CEO of SIGNiX. "We're excited to begin working with the TBA to spread awareness and adoption of digital signature technology and make banking transactions of all kinds more efficient and cost-effective."
Click here to learn more about SIGNiX's products and services, or email Brian Felker or Stacey Langford to learn more.

Sponsor a 2017 TBA Event

The 2017 Sponsorship Brochure is now available online. TBA enjoys strong member engagement at all TBA events and educational programming, including record attendance of 550 and 650 in 2016 at our top two events—Credit Conference and Annual Meeting, brand exposure from TBA events is well worth your sponsorship dollars. Contact Stacey Langford to learn more.

Professional Development Directory Now Available

Each year TBA hosts 80 live training and professional development programs. TBA has announced the dates and locations for several schools and conferences through 2017, and the Professional Development Directory is now available online, along with the two-sided At-a-Glance calendar of educational programming. Click here to view the Professional Development Directory.
For more information about TBA's 2017 educational offerings please contact Susan Taylor or Debbie Brickles.

TBA On the Road

  • The CFO/Controller Forum meets in Nashville.
  • Stacey Langford visits members in Middle Tennessee.
  • TBA staff and Tennessee bankers welcome ABA for their Annual Convention in Nashville. 

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