Tennessee Bankers

This Week Newsletter

December 05, 2016 - Issue No. 1648

Banks Rally in Relief of Gatlinburg, East Tennessee

Our state has faced a tragic week. With tornadoes throughout East and Middle Tennessee, and the wildfire in Sevier County, lives have been lost, businesses destroyed, and families displaced.


Demonstrating the community that exists among our banking industry, the TBA has heard from bankers throughout Tennessee and across the country asking what can be done. The TBA has created a webpage that will direct those interested in different opportunities being provided by our banks in the area. We will continue to update it as we receive additional information.


Please click here to learn more.


In addition, we want to commend all the banks in the affected areas for serving their community during this time. From financial contributions to volunteering employees, Tennessee bankers continue to be leaders in their community.

TCAD Issues Final Report on Elder Financial Exploitation

The Tennessee Commission on Aging and Disability released its final report recommending to the General Assembly certain legislative actions that can be taken to reduce elder financial exploitation. 
Prior to issuing the report, TCAD conducted research, statewide meetings, and surveys of financial institutions and consumers. TBA participated in all events and submitted feedback after receiving a draft report. The final report includes many of TBA's recommendations and calls for four key action steps, which can be found on pages 14-15:

  • Banker Training: Review best practices related to training employees of banks and credit unions on how to detect, prevent, and respond to elder financial exploitation. 
  • Education: Use available resources, both public and private, new resources, or a combination of both, to educate the public, with a focus on older Tennesseans and vulnerable adults about the prevalence of scams, the devious ways they are implemented, and ways to protect oneself from being victimized.
  • Freeze Suspicious Transactions: Permit financial institutions to "freeze" or hold transactions when the institutions suspects elder financial exploitation with no liability on the institution.
  • Emergency Contact Forms: Explore best practices in regards to using emergency contact forms for financial institutions where account holders can identify trusted individual to contact if financial exploitation is suspected. 

Elder financial exploitation will be a key priority in the 2017 General Assembly. TBA staff will continue to work with TCAD, our banker advisory group, and other bankers in developing possible legislation as we work through the legislative process. Read the report.

TBA Signs Joint Letter Urging Congress to Advance Reg Relief

TBA joined ICBA and a coalition of other state bankers associations and called on Congress last Monday, Nov. 28, to enact meaningful regulatory relief during the lame duck session. In a joint letter to lawmakers, the groups advocated several top-priority bills to strengthen community banks and promote local economic growth.

The list includes legislation to provide relief from Basel III capital standards, qualified mortgage rules, and the Home Mortgage Disclosure Adjustment Act. Read the letter.

CFPB Bulletin Outlines Incentive Compensation Expectations

The CFPB on Monday, Nov. 28, issued a bulletin outlining expectations for incentive compensation programs. The bulletin compiles guidance previously issued by the bureau and highlights examples from the agency's supervisory and enforcement experience. While the bureau acknowledged that properly managed incentive programs can benefit both companies and customers, and that the types of incentive programs used by banks vary widely, it cautioned financial institutions that inadequate oversight or setting unrealistic goals could lead to consumer harm.

The bureau reiterated its expectation that banks using incentive programs have proper compliance management systems in place to monitor and quickly respond to any potential violations of consumer protection laws. While the CFPB does not require any particular compliance management system, it recommended that a CMS be appropriately tailored to reflect the risk, nature, and significance of the institution's incentive programs.
Read the bulletin.

CFPB Updates Rulemaking Agenda for 2017

The CFPB last week updated its rulemaking agenda for 2017. According to the agenda, the bureau expects to issue a final rule on arbitration in consumer financial agreements around February and to finalize proposed tweaks to the TILA-RESPA integrated disclosures around March. The bureau is also continuing with its early-stage rulemaking activities on overdrafts, debt collection, and lending to small businesses. View the agenda.

TN House Democrats Retain Top Leaders

House Democrats on Saturday Nov. 26, met to elect their caucus leadership for 2017 and voted to retain their top leaders.
Rep. Craig Fitzhugh (D-Ripley) will remain the Minority Leader in the House, and Rep. Mike Stewart (D-Nashville) retained his position as caucus chair. Both were re-elected unanimously.
Rep. Raumesh Akbari (D-Memphis) was elected to the House floor leader position, replacing Rep. Jason Powell (D-Nashville), who didn't seek re-election to the position. Akbari is considered one of the rising leaders in the state Democratic Party.
Rep. John DeBerry Jr. (D-Memphis) will take over as leader pro-tempore, replacing former Rep. Joe Armstrong of Knoxville, who resigned his position in the legislature after he was convicted in federal court of filing a false tax return.
In the state Senate, Sens. Lee Harris and Jeff Yarbro both are expected to retain their positions as minority leader and caucus chair, respectively. The Senate caucus has not yet formally met to elect party leadership.

Credit Conference, Legislative Reception Registrations Now Open

TBA's Credit Conference, the largest gathering of bankers in Tennessee each year, will take place February 7-8, 2017 at the Omni Nashville Hotel. This year's general session speakers include economist/futurist Mark Zinder, David L. Kemp, TDFI Commissioner Greg Gonzales, and John Barrickman. Luncheon speaker is Dave Sanderson, one of the survivors of the "Miracle on the Hudson," and the last passenger off the back of the plane on that fateful day. He will take us through his experiences on January 15, 2009, as he risked his own life in frigid water to help other passengers off the plane. Click here to register.
You can make your hotel reservations at the Omni Nashville Hotel by calling 800-THE OMNI (800-843-6664) and requesting the Tennessee Bankers Association Credit Conference block of rooms to take advantage of the special group rate of $229 single/double per night. 
Also, plan to attend the annual Legislative Reception on Wednesday, February 6, the evening before Credit Conference. This reception will take place at the War Memorial Building. Take this opportunity to meet with your state senator and representative while networking with fellow bankers, and enjoying delicious food and good music. A separate registration of $50 per person is required for the Legislative Reception if you sign up by January 23. After January 23, the fee increases to $60 per person.

TBA On the Road

  • The Small Bank Roundtable meets in Nashville.
  • The Financial Products and Services Inc board convenes in Nashville.

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