Tennessee Bankers

This Week Newsletter

August 14, 2017 - Issue No. 1732

2018 Gubernatorial Race - Who's in?

Although it seems as though we just wrapped up the 2017 elections, the 2018 gubernatorial race is just around the corner. Below is a list of candidates who have announced their run, which now includes all anticipated entrants into the race.
Two candidates will face off in the Democrat primary: Karl Dean, former Mayor of Nashville; and Craig Fitzhugh, former TBA Chairman and current Minority Leader in the state House of Representatives.
The Republican primary has attracted five Governor hopefuls: Mae Beavers, current State Senator from Mt. Juliet and retired court reporter; Diane Black, current US Congressman from the 6th district and Chairman of the U.S. House Budget Committee; Randy Boyd, businessman and former Commissioner of the TN Department of Economic and Community Development; Beth Harwell, current speaker of the state House of Representatives; and Bill Lee, businessman and political newcomer from Franklin.

CFPB Proposes New Disclosure Form for Overdraft Fees

The CFPB has released four new "prototype" overdraft disclosure forms as part of its "Know Before You Owe" campaign. The bureau plans further testing of the forms to determine whether they are more effective than the model opt-in form that banks currently use to explain the overdraft protection options available to consumers.
While the release of the forms was not accompanied by any regulatory amendments, CFPB Director Richard Cordray noted that the bureau is currently in the "pre-rule stage" of an overdraft rulemaking, "with no timing stated for when a rule might be proposed." The bureau has been studying overdraft since February 2012.
Along with the model disclosure forms, the bureau also published a report on "frequent" overdraft users. The report noted that a low percentage (about 9 percent) of consumers are considered to be frequent overdrafters and found that 30.5 percent of frequent overdrafters are opted in to overdraft protection services, a rate 2.5 times higher than opt-in rates for other consumers. View the disclosure forms. View the report.

Cyber Incident Response Exercise in September

FS-ISAC is holding an incident-response exercise this fall that is free to all regulated financial institutions. The exercise, Cyberattack Against Payment Systems (CAPS) 2017, will be held twice this year—Sept. 12–13 and Sept. 19–20. CAPS, which takes approximately two hours per day, will help financial institutions around the country practice incident-response plans and discuss options for the strongest defense possible in a real cyber-attack. Learn more and register.

Fannie, Freddie Fail Stress Tests

Fannie Mae and Freddie Mac could need upwards of $100 billion in bailout funds if faced with another financial crisis, according to the results of the GSEs' Dodd-Frank Act stress tests released on Aug. 7.
Under a "severely adverse" scenario that saw GDP fall 6.5 percent from its pre-recession peak and unemployment reaching 10 percent, Fannie and Freddie combined would require between $34.8 and $99.6 billion in Treasury funds, the FHFA said in its report. View the stress test results.

Bring Your Board to Nashville this October

TBA's annual Bank Directors Retreat is scheduled for October 18-19 at the Westin Nashville, downtown's newest conference hotel. Designed for both inside and outside directors along with executive management, the program features a reception at the Country Music Hall of Fame and presentations by industry experts including Chris Lowe, Commissioner Greg Gonzales and Bank Director's Al Dominick.  This is an event you'll want to invite your full board to attend.  The Bank Directors Retreat is immediately followed by the Independent Bankers Division Convention October 19-20.

Compliance Alliance Hot Topic Question

Q: Is it okay for our mortgage lenders to offer welcome gifts, like a gift basket, to realtors to introduce themselves?
A: The basket itself would definitely be a thing of value so if it's taken with the basic purpose of getting referrals or only to realtors who normally refer to the bank, that's definitely a section 8 violation. In general, I wouldn't consider it a good practice since it would be hard to document a purpose that wasn't tied to referrals.

Not a Compliance Alliance member? Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, sign up for a free demo webinar or email info@compliancealliance.com. For timely compliance updates, subscribe to Compliance Alliance's email newsletters.

Join the Retail Banking Officer Forum

The 2017-2018 Retail Banking Officer Forum, which holds its first of three sessions September 6 in Nashville, offers individuals who are responsible for retail banking operations the opportunity to discuss concerns and explore solutions to challenges they face on a day-to-day basis.  The agenda for each session is established based on feedback and input from participants in the forum group. Subject matter experts are invited to speak on specific topics based on requests from the forum members. To learn more, click here.  The early registration deadline is August 23.

Register for the 2017 BSA/AML Compliance Management Program

Register now for TBA's BSA/AML training. Held in 4 locations across the state September 11-14, this one-day session incorporates a review of all of your institution's BSA's technical compliance responsibilities and provides an annual review of critical duties.  It also covers the required elements of an AML program from CIP to enhanced due diligence.  New regulatory changes are covered in this session.  To learn more or register, click here.  The early registration deadline is August 31.

TBA On the Road

  • The TBA hosts the Leaders in Banking Excellence induction ceremony at the TBA Barrett Training Center in Nashville.
  • The TBA Board of Directors holds its quarterly meeting in Nashville.

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