Tennessee Bankers

This Week Newsletter

April 16, 2018 - Issue No. 1815

General Assembly Pushes Towards Adjournment

With the exception of relevant finance committees where the budget and appropriations bills will be heard along with bills with a fiscal impact that will be taken up after the budget, most Senate and House committees have closed or are expected to conclude their business this week. The full House is expected to vote on the budget on Tuesday, April 17.

This is an important step in signaling the end of session is near. Although a firm adjournment has not been announced, many expect the General Assembly to conclude their business by Friday, April 20; however, several key initiatives of the administration, including juvenile justice reform and addressing the opioid epidemic are still in play, so the legislature’s work could continue until sometime the following week.

TBA Wraps Up Its Legislative Year

As reported last week, TBA’s legislation to allow banks to pledge out-of-state bonds as collateral for public deposits overwhelmingly passed on the Senate and House floor. It was signed by the Speakers of the Senate and House and sent to the Governor for signature. Once signed, it will take effect on July 1, 2018.

TBA has also been supporting legislation (SB 1758 / HB 1794) to authorize remote notarization in Tennessee, which has passed the Senate on March 26 and will be on the House floor Tuesday, April 17.

Other legislation that TBA has been working on to ensure it does not have a negative effect on the banking industry should be amended this week. Those include bills that would have imposed mandatory reporting and criminal liability for failure to report all instances of suspected elder financial exploitation and enhanced monetary penalties for cases where a lien is contested and found invalid.

Mulvaney: CFPB ‘Opening Up’ Rules in Search of ‘Unnecessary Burden’

The CFPB is revisiting several rules to reconsider whether they impose “unnecessary burden or restrict consumer choice,” Acting Director Mick Mulvaney told the House Financial Services Committee last Wednesday, April 11. Specifically, he said, the bureau is revisiting the Home Mortgage Disclosure Act data expansion and its small-dollar loan rule.

“Regarding HMDA, the bureau intends to open a rulemaking to reconsider various aspects of the 2015 HMDA rule, such as reporting thresholds and transactional coverage and reconsider data points not mandated by the Dodd-Frank Act,” Mulvaney said. He also explained that the federal banking agencies’ goal with supervising HMDA compliance is “to help companies identify any weaknesses” and that they “will credit good-faith efforts to comply.”

Agencies Discuss Risk Management Role of Cyber Insurance

As banks continue to face threats from cyber incidents, the Federal Financial Institutions Examination Council last Tuesday issued a joint statement on how its member agencies view the role of cyber insurance in banks’ overall risk management strategies. The statement did not contain any new regulatory expectations.

While banks are not required to have cyber insurance, FFIEC noted that it can be a helpful tool to mitigate risk but emphasized that a sound control environment remains the primary defense against cyber threats.

When assessing the costs and benefits of cyber insurance, the agencies recommended that banks involve multiple stakeholders across the organization; perform proper due diligence to understand cyber insurance coverage and identify any gaps; and evaluate cyber insurance as part of an annual review and budgeting process.

Financial Products and Services Inc., TBA’s insurance agency subsidiary, offers cyber insurance policies that cover a wide range of cyber and privacy exposures, including data breach liability, cyber liability and cyber publishing and social networking liability.

CFPB Seeks Public Feedback on Consumer Complaints, Inquiries

The CFPB last Thursday issued a request for information seeking feedback on its handling of consumer complaints and inquiries. The request is the 12th in an ongoing series of RFIs designed to provide the CFPB with input on how to improve outcomes for both consumers and covered entities.

The public is invited to submit comments on how the bureau is collecting and monitoring responses to consumer complaints, how it responds to consumer inquiries about financial products and services, and how these processes could be improved. Read the RFI.

Register for The Universal Banker—Today and Tomorrow's Retail Banker

With reduced in-branch transactions and customer visits and an increase in technology, less traditional teller functions are needed. No longer can a frontline team member say: “It’s not my job!” Today’s frontline team is shifting from traditional singular positions such as tellers, new account representatives, financial service representatives, etc., to a multi-tasking, “universal” personal banker. In addition, today’s customer base is shifting from the traditional visit to the bank twice a week to a quick response, electronic banking relationship.

The Universal Banker seminar focuses on the essentials for today’s banking environment to develop the universal branch, getting the right team on board, providing exceptional service, and building profitable relationships from millennials to baby boomers.

This program, which takes place June 12 and 13 at Nashville's TBA Barrett Training Center, is highly recommended for all bank employees in customer contact positions, branch managers, retail branch administrators, and marketing directors.

Register today!

Improve the Financial Capability of Your Entire Community with EVERFI

EVERFI was founded 10 years ago with the ambition to reach consumers and communities of the greatest need with just-in-time financial education. Today, through partnerships with 750 financial institutions, over 20,000 K-12 schools and their districts, their tools are set to educate 18,000,000 students and consumers this year on topics of home ownership, budgeting, and more.

To celebrate the last decade of impact and promote April as Financial Literacy Month, TBA is putting a focus this month on promoting EVERFI’s comprehensive financial capability solution to our member banks. If you would like to learn more visit www.EVERFI.com or contact Stacey Langford to schedule a meeting with TBA’s dedicated EVERFI representatives.

Welcome New Associate Member

TBA welcomes new associate member Peace Communications in the category of Information Technology. Please learn more about each of our associate member companies by visiting our online directory of associate members and thank them for their support of the Tennessee banking industry through membership.

Ag Bankers Meet with Templeton, Gonzales

Tennessee ag bankers met with Ag Commissioner Jai Templeton and TDFI Commissioner Greg Gonzales to discuss the ag banking in Tennessee.

TBA On the Road

  • The TBA Young Bankers Division Leadership Convention convenes April 15-17 at the iconic Peabody Memphis. Follow on socials at #TBAleadership.
  • The PEP Financial Literacy Awards luncheon is held in conjunction with the Leadership Convention at 12:45 pm CT, April 16. Support your colleagues in their financial literacy accomplishments by tuning in on Facebook Live.

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

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