Tennessee Bankers

This Week Newsletter

October 23, 2017 - Issue No. 1742

Regulators Issue Key HMDA Data Fields

The federal regulatory agencies last week identified designated key data fields that examiners will use to test and validate the accuracy of data collected under the new HMDA requirements, which take effect in 2018. In response to industry concerns about the burden imposed by HMDA data reporting, the agencies designated 37 of 110 data fields as key fields that examiners will use to evaluate bank compliance.

The identification of these fields is intended to support the efficient and effective evaluation of financial institutions' compliance with the HMDA’s requirements. In certain circumstances, however, examiners may determine it's necessary to review additional HMDA data fields as appropriate. The agencies also issued guidelines for bank examiners to use when evaluating HMDA data.

In other HMDA-related news, the Consumer Financial Protection Bureau has updated its chart on the collection and reporting of HMDA information about ethnicity and race, and published a new reporting reference chart that banks can use as a reference for the data points required for collection under Regulation C. View the joint agency data fields. View the CFPB's compliance resources.

TBA Calls for Continued Bipartisan Work on Reg Reform

TBA and 50 other state bankers associations last Monday wrote to members of the Senate Banking Committee encouraging lawmakers to continue pursuing the goal of bipartisan regulatory reform. The associations called on the committee to include several bills long advocated by TBA in its overall proposal for regulatory reform, as well as those that would allow regulators to tailor actions based on banks’ business models and risk profile, revise capital and liquidity requirements, and allow mortgage loans held in portfolios to be considered “qualified mortgages.”

In addition, the associations noted that several other legislative proposals for regulatory reform have support on both sides of the aisle, such as a bill to recalibrate the systemic risk designation process and a bill to allow banks to hold municipal bonds and accept municipal deposits. Read the letter.

Lawmakers Seek Delay in FASB Accounting Standard

A coalition of House Financial Services Committee members, including Tennessee Rep. David Kustoff, recently called on the Financial Accounting Standards Board to delay its Current Expected Credit Loss standard until it has closely examined the impact on the banking sector. In a letter to the SEC and FASB, the group of 26 lawmakers said the standard could inhibit lending, harm lender balance sheets, and affect regulatory capital requirements.

ICBA provided input on the letter and has worked closely with FASB for years to promote the scalability of the CECL standard for institutions of all sizes. Read the Joint Letter.

First of Four Senior Compliance Officer Forums Scheduled for Nov. 2

The 2017–2018 Senior Compliance Officer Forums, facilitated by Connie Edwards, CRCM, president, Banc Compliance Group, LLC, Franklin, Tenn., will bring together senior compliance officers in a small-group setting to exchange ideas freely, dissect challenges openly, and discuss solutions that can improve the performance of your bank in the area of compliance.

Discussion Topics

  • Compliance exam issues—both lending and deposit
  • Possible regulator hot topics
  • Compliance challenges/successes
  • Boards of directors and officer issues
  • BSA exam challenges/topics

These meetings are held four times per year at the TBA Barrett Training Center in Nashville, with the first taking place Nov. 2.

Exclusive sponsorship available, contact Stacey Langford for details.

Click here to learn more.

Second Session of Senior Retail Banking Officer Forums Set for Nov. 14

In its fourth year, the Senior Retail Banking Officer Forums affords a platform for retail banking officers to exchange ideas freely, examine pressing issues in today's ever-evolving regulatory, cost-conscious, and productivity-driven environment.

"I was personally encouraged by our president/CEO to participate in the TBA Senior Retail Banking Officer Forums. He had participated in the CEO Forums and recognized the value that small classroom engagement can offer. This will be my third year in the program, and I continue to learn new things with each quarterly session. Interactive small groups are a much desired format versus the traditional course lecture.

The benefits are twofold: open discussion between peers is insightful and honest, but the professional relationships you develop will serve you well for many years to come."
–Robyn Medley, SVP/Director of Retail, Reliant Bank

The next Forum is at Nashville's TBA Barrett Training Center on Nov. 14.

Click here to learn more.

Leverage EVERFI for Consumer Financial Education

TBA is a proud to be a long-standing partner with EVERFI, an online consumer financial education platform that integrates with your digital marketing strategy, aligns to your products and services, and is built to empower your consumers and employees to manage their finances. EVERFI offers innovative and turnkey tools to bring financial education to a bank’s core audiences including consumers, employees, and employer groups. The financial education resources act as content marketing to build consumer financial capability while also building the bank’s brand in the community. Learn more about the latest innovations from EVERFI at EVERFI.com/Consumer-Financial-Education or reintroduce yourself to what they have to offer by contacting Tom O’Keefe.

Financial PSI This Week: Bank Boards—Does Your Bank Have a Breach Response Plan in Place?

When a data breach or other cyber event occurs, the damages can be significant, often resulting in lawsuits, fines, and serious financial losses. What’s more, cyber exposures impact businesses of all kinds, regardless of their size, area of focus, or status as a private or public entity.

For organizations to truly protect themselves from cyber risks, corporate boards must play an active role. Not only does involvement from leadership improve cyber security, it can also reduce liability for board members.With that in mind, does your bank have a breach response plan in place?

Even the most secure organizations can be impacted by a data breach. What’s more, it can often take days or even months for a company to notice its data has been compromised.

While cyber security programs help secure an organization’s digital assets, breach response plans provide clear steps for companies to follow when a cyber event occurs. Breach response plans allow organizations to notify affected customers and partners quickly and efficiently, limiting financial and reputational damage.

Board members should ensure that crisis management and breach response plans are documented. Specific actions noted in breach response plans should also be rehearsed through simulations and team interactions to evaluate effectiveness.

In addition, response plans should clearly identify key individuals and their responsibilities. This ensures that there is no confusion in the event of a breach and your organization’s response plan runs as smoothly as possible.

If you have any questions and to make sure you are covered, please contact Jon Goodson or Ted Frizen.

TBA On the Road

TBA’s Government Relations team participates in the ABA’s annual State Issues Summit.

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