Hopefully you are already planning for the annual Savings Week. It is officially scheduled for the last week of February. FDIC has materials available, if you do not have anything prepared. A nice statement header or lobby signage promoting savings is appropriate at this time. Be sure to document what you provide for the next exam.
Click here for the link to the FDIC materials: https://www.fdic.gov/consumers/education/
For my Illinois clients, Missouri is following behind you a couple years but the information here applies to both states.
What are the implications to banks and credit unions now that the state has legalized medical marijuana? The federal laws regulating “illegal drugs” did not change. So if your organization decides to provide services to a marijuana related business, you should know and understand the risks. As in everything we do, risk vs. reward has to be a consideration.
The Department of Justice and FinCEN both made weak attempts to provide guidance. They neither gave approval, but the DOJ said, “we are likely to be too busy to prosecute a bank to enforce drug laws”.
FinCEN did not go that far, they said, the states legalizing marijuana does not affect the institutions obligation to file a SAR and to monitoring illegal activity (federal).
So to provide them services, you are only legal in your state.
Now the question of providing ATM services, once you allow them to use your network, they cross state lines. So do you provide them on site ATM’s? Do you provide them debit cards? Do you provide them credit cards?
The dilemma continues to grow. Webster defines a dilemma as a choice between two undesirable options. That pretty well sums it up.
Here are 2 important facts to consider:
Regardless of the fact Missouri and Illinois law changed, the production and distribution of marijuana remains illegal under federal law. Therefore, your institution can face serious risks if you chose to bank the medical marijuana industry in your state.
If you decide not to bank the medical marijuana industry, you still will have to enhance your due diligence to identify businesses that indirectly receive revenue from production and sale of marijuana. For example, a business/entity renting a building to a medical marijuana business to store their product or provides security services to a medical marijuana facility. Know Your Customer goes to a new level going forward.
While this is already an issue in Illinois, Missouri won’t start allowing legal business activity until early 2019, so get ready, the question is inevitable from either your management, your employees or the public.
Consumers will be able to place a freeze on their credit at all consumer credit reporting agencies. They will also be able to remove the freeze as needed.
Are you loan officers aware of the need to ask the applicant during the application process if there is a freeze on their credit? It might be a good time to incorporate that question in the loan officer interview. Eliminate having to call the applicant back when you attempt to pull credit and it is blocked.
There is still a couple months before the freeze capabilities is mandatory for all consumer credit reporting agencies, so you might want to give this some thought before September 21.
The Federal Reserve Board has issued a final rule to amend the check collection and return provisions in subparts C and D of the regulation, but left unchanged, for now, subpart B, which covers the funds availability and funds availability disclosure requirements. Rulemaking on subpart B must be done in partnership with the CFPB.
In the final rule, the Board has modified the current check collection and return requirements to reflect the virtually all-electronic check collection and return environment and to encourage all depository banks to receive, and paying banks to send, returned checks electronically. The Board has retained, without change, the current same-day settlement rule for paper checks. The Board is also applying Regulation CC’s existing check warranties under subpart C to checks that are collected electronically, and in addition, has adopted new warranties and indemnities related to checks collected and returned electronically (including those deposited via remote deposit capture and mobile remote deposit capture) and to electronically-created items.
The final rule will be effective July 1, 2018.
Also changes were made to availability of US states or territories that are not in the contiguous 48. Adding an extra day for credit on items for Guam, Northern Marriana Islands, and American Somoa.
Good time to quickly review those procedures manuals and perhaps policies to assure they don’t contradict the revisions.
The Economic Growth, Regulatory Relief, and Consumer Protection Act was enacted on May 24, 2018.
Section 304 of this Act restores the Protecting Tenants at Foreclosure Act 0f 2009 (12 U.S.C. 5220) and repeals its sunset provision.
The new Act is effective 30 days after enactment, which is June 23, 2018.
In case you missed it, June 2018 was the revision to the Compliance Examination Handbook. Yes, finally, Reg. CC now says $200, rather than the old $100, with regard to same day availability.
Check it out, the June 2018 version, hot off the press.
A few days ago I stated that the CFPB has a new name and many were surprised by this statement. So I did a bit of research.
THE CFPB DOES HAVE A NEW NAME.
It appears in April 2018, Director Mulvaney clarified the name of the Consumer Financial Protection Bureau is really the Bureau of Consumer Financial Protection. The original Dodd Frank apparently reads, Bureau of Consumer Financial Protection and not Consumer Financial Protection Bureau. In his presentation in April, he stated many reasons for changing this now and “making it accurate”, he also stated that prior lawsuits were against the CFPB and not the BCFP.
Note: I see a bunch of attorneys charging their clients mega fees to get back to the court with changes to their lawsuits, the defendant is not the CFPB but the BCFP.
Many detractors are raising issues with the fact that all media must be redesigned and communications still need to be changed because e-mail and twitter still say CFPB. These detractors feel he is “creating” or retaining jobs for marketing and media people to make these changes.
The President did promise to minimize regulations (many thought possibly he would eliminate the CFPB) and it appears this is the method to do so, the CFPB is no more, but the BCFP is new and improved.
Finding it hard to find an appraiser? As the USPAP requirements continue to tighten, appraisers are falling like flies. The problem is there are few “new” appraisers. You may say, I have my appraisers, they do a great job, so why do I care……. BECAUSE your regulators are now increasing their oversight of your appraisers. Are you testing their appraisals? Do you have strong appraisal review procedures in place? If you find issues with an appraiser, do you remove them immediately and then if you remove them, do you review the appraisals they did for you in the past? How do you find which loans in your portfolio each appraiser provided? Should you begin coding loans so you can pull a report? Does your Board approve your appraisers? I could go on with my questions, but be aware, your regulators are very conscious of appraisers that have problems at other banks, thus if another institutions problem appraiser is on your list, you can count on your regulator looking for those specific loans and increased scrutiny.
The HMDA signage has changed. Here is a pdf you can print and post in your lobby.
When was the last time you pulled out your resume’ and updated it? We suggest updating your resume’ at least annually. Your regulators are going to ask for it, so let’s make it fresh and current. Include all those credentials you may have earned since you last edited it. Also, do you conduct a “qualification” review? We have a form available. It will help your board assess your qualifications and provide the regulators with the documentation they want to see. Document your board really does consider your qualifications each year. Priceless. Simply request it from our contact us page and its on its way to you.