WBA Insurance Services Resources To Help You Win

It is nearly impossible to drive to and from work these days without noticing the "Now Hiring" signs in front of businesses. The signs may even list catchy phrases like "Great Benefits and Wages," as well. Your employees notice these signs, too. To attract and retain talent, bank employers must offer high-quality benefits as well as competitive wages. 

Many of you as HR professionals or CFOs have just gone through another year of health renewals for your business. The challenge of what to change in the form of deductibles and back-end risk for your employees seems to be a never-ending balancing act. It can be a difficult process to make those decisions and explain them to employees. One tool that can help banking HR professionals navigate renewals is the Wisconsin Banking Industry Compensation and Benefits Report, the largest Wisconsin-specific report; it contains salary and benefit information for 113 different jobs with data from 111 participating Wisconsin banks. The report is an excellent tool to help banks compare their benefit packages with peers. Visit www.wisbank.com/WIcompensation for more information or to purchase your copy of the report and to learn about participating in the 2019 report.

Another strategy to help create increased employee satisfaction and engagement is the idea of a "Benefit Stipend." It is a simple concept where the employee gets a set amount of premium dollars to use on supplemental coverages that the employee deems to be important to them. While many banks importantly provide company-paid life insurance and long-term disability coverage, these are plans that some employees may not see the immediate value today.  Providing your employees with access and some financial assistance to take care of pressing medical costs like deductibles and coinsurance gives them a greater feeling of financial security as a bank employee. 

Benefit stipends for supplemental insurance can start out at $5 to $10 per week and can be set up in a way to be used for plans that range from Accident, Hospital, and Critical Illness. WBA EBC is now offering a special pricing partnership with Aflac for bank employees to take advantage of these supplemental insurance plans. These benefit stipends can be designed to reflect length of service; with more tenured employees eligible for a higher amount which creates another value proposition for longevity of employment. 

Here at the WBA, we would love to talk to you about creative ways that a benefit stipend and other programs can help you maintain long-term employee relationships. WBA EBC has many product lines for your employees, including our WBA AHP, dental, vision, life/disability, and other ancillary products to help banks attract and retain the best talent. To start that conversation, please contact Brian Siegenthaler at 608-441-1211 or via email.

Lund is WBA executive vice president – chief of staff and president of EBC and MBIS.

By, Amber Seitz

The February 2019 edition of the WBA Compliance Journal has been published.

This month's Special Focus articles address the recent Koss Corporation v. Park Bank case. 

Click Here to View the February 2019 Compliance Journal.

By, Ally Bates

The below article is the Compliance Notes section of the February 2019 Compliance Journal. The full issue may be viewed by clicking here.

FRB and FDIC issued an advisory on Voluntary Private Education Loan Rehabilitation Programs to make financial institutions aware of an amendment to section 623 of the Fair Credit Reporting Act (FCRA). This amendment is contained in section 602 of the Economic, Growth, Regulatory Relief and Consumer Protection Act (EGRRCPA). It gives consumers the opportunity to rehabilitate a private education loan with a previously reported default under certain conditions. Financial institutions that choose to establish a private education loan rehabilitation program under Section 602 of the EGRRCPA (Section 602 Program) that satisfies the statutory requirements, including written approval of the terms and conditions from their federal regulatory agency, are entitled to a safe harbor from potential claims under the FCRA related to removal of the reported default. The advisory may be viewed at: https://www.fdic.gov/news/news/financial/2019/fil19005a.pdf


CFPB published the Reportable HMDA Data: A Regulatory and Reporting Overview Reference Chart for Data Collected in 2019. The chart is intended to be used as a reference tool for data points required to be collected, recorded, and reported under Regulation C. The chart may be viewed at: https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/cfpb_reportable-hmda-data_regulatory-and-reporting-overview-reference-chart-2019.pdf


FRB launched an interactive smartphone and tablet application, called Money Adventure Mobile App, designed to teach elementary school students about the security and design features of Federal Reserve notes. More information on the app may be viewed at: https://www.uscurrency.gov/educational-materials/classrooms/money-adventure-mobile-app


FRB, FDIC, and OCC released the Shared National Credit (SNC) Review. The review shows that the level of loans in the SNC portfolio with the lowest supervisory ratings (special mention and classified) declined, largely because of improving economic conditions in the oil and gas sectors. Despite the improvement, special mention and classified commitment levels remain elevated compared to prior economic cycles. The full review may be viewed at: https://www.fdic.gov/news/news/press/2019/pr19004a.pdf


CFPB released the 2019 Rural or Underserved Counties list. The list may be viewed at: https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/cfpb_rural-underserved-list_2019.pdf


HUD awarded $74 million to hundreds of public housing authorities across the country to continue helping public housing residents participating in the Housing Choice Voucher Program and/or reside in public housing to increase their earned income and reduce their dependency on public assistance and rental subsidies. These grants renew HUD’s support of 688 public housing authorities through the Department’s Family Self-Sufficiency (FSS)) program. The announcement may be viewed at: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_19_010


CFPB issued FAQs related to TRID. The FAQs may be viewed at: https://www.consumerfinance.gov/policy-compliance/guidance/tila-respa-disclosure-rule/tila-respa-integrated-disclosure-faqs/


FDIC adopted revised interagency examination procedures to incorporate CFPB amendments to Regulation E and Regulation Z. The examination procedures may be helpful to financial institutions seeking to better understand how FDIC examiners will evaluate an institution’s compliance with these regulations. The procedures may be viewed at: https://www.fdic.gov/news/news/financial/2019/fil19009.pdf


FTC will host a forum on small business financing on May 8, 2019, to examine trends and consumer protection issues in this marketplace, including the recent proliferation of online loans and alternative financing products. Further information may be viewed at: https://www.ftc.gov/news-events/events-calendar/strictly-business-ftc-forum-small-business-financing


FRB announced that it will begin its Survey of Consumer Finances, a statistical study of household finances that will provide policymakers with important insight into the economic condition of a broad cross section of American families in March. The survey has been undertaken every three years since 1983. It is being conducted for FRB by NORC, a social science research organization at the University of Chicago, through December of this year. The announcement may be viewed at: https://www.federalreserve.gov/newsevents/pressreleases/other20190213a.htm


OCC will host two workshops in Milwaukee, Wisconsin, at the Hilton Garden Inn Milwaukee Downtown, March 26 and 27, for directors of national community banks and federal savings associations supervised by the OCC. The Compliance Risk workshop on March 26 combines lectures, discussion, and exercises on the critical elements of an effective compliance risk management program. The Operational Risk workshop on March 27 focuses on the key components of operational risk—people, processes, and systems. The notice may be viewed at: https://www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-16.html


FRB announced a quality improvement initiative for Check Adjustments Services. The Federal Reserve Banks will charge a quality fee to depositing institutions for quality issues within work deposited with the Federal Reserve Banks. Additionally, the Federal Reserve Banks will charge a quality fee for cases submitted with incorrect or incomplete information that resulted in the prevention of automatic resolution of the request. These quality fees are designed to encourage greater efficiency through proper case submission and improved deposit practices. The announcement may be viewed at: https://www.frbservices.org/news/fed360/issues/011519/011519-check-adj-quality-initiative.html 


CFPB published an article on common errors in credit reports and how consumers can get them fixed. According to a study conducted by the Federal Trade Commission, one in five people have an error on at least one of their credit reports. The article may be viewed at: https://www.consumerfinance.gov/about-us/blog/common-errors-credit-report-and-how-get-them-fixed/


FRB issued changes to the Cash Services Manual of Procedures (CSMOP). The manual contains the requirements that apply to an Institution’s Currency and Coin transactions with a Federal Reserve Bank. An Institution that orders from and/or deposits Currency and Coin with a Federal Reserve Bank shall adhere to CSMOP, and/or such contract, which contains the prescribed procedures for FRB Cash Services. The manual may be viewed at: https://www.frbservices.org/assets/resources/rules-regulations/030119-operating-circular-2-csmop.pdf


CFPB has issued the 2019 edition of its List of Consumer Reporting Companies. The list may be viewed at: https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/cfpb_consumer-reporting-companies-list.pdf 


The House Financial Services Committee has released a transcript of Chairwoman Maxine Waters first policy speech in the 116th Congress. The speech outlines Waters’ priorities for the Committee like housing and strengthening CFPB. The speech may be viewed at: https://financialservices.house.gov/news/email/show.aspx?ID=LSOOG4ZWMHVGE 


CFPB has issued the Complaint Snapshot: Mortgage, detailing consumer complaints generally and in relation to mortgages. The report indicates that CFPB received approximately 71,000 mortgage complaints between November 1, 2016 and October 31, 2018, representing 11 percent of total complaints. The report may be viewed at: https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/cfpb_complaint-snapshot-mortage_2019-01_liwsYNV.pdf


FRB launched an interactive smartphone and tablet application designed to teach elementary school students about the security and design features of Federal Reserve notes. More information on the application may be viewed at: https://www.uscurrency.gov/educational-materials/classrooms/money-adventure-mobile-app  


CFPB the sixth annual report from the Office of Servicemember Affairs (OSA) highlighting issues and emerging trends facing servicemembers, veterans, and military families. The number of servicemembers, veterans, and military families turning to CFPB for help has continued to increase over time. As a result, the complaint volume from servicemembers has also risen over the years. From 2016 to 2017 there was a 47% increase in complaints received from servicemembers. The report may be viewed at: https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/cfpb_osa_annual-report_2018.pdf


FRB announced Consumer & Community Context, an article series that features original analysis about the financial conditions and experiences of consumers and communities, including traditionally underserved and economically vulnerable households and neighborhoods. The inaugural issue covers the theme of student loans, and includes articles on the effect that rising student loan debt levels may have on homeownership rates among young adults; and the relationship between the amount of student loan debt and individuals’ decisions to live in rural or urban areas. The first issue may be viewed at: https://www.federalreserve.gov/publications/files/consumer-community-context-201901.pdf 

By, Ally Bates

The below article is the Regulatory Spotlight section of the February 2019 Compliance Journal. The full issue may be viewed by clicking here.

Agencies Propose Thresholds Increase for the Major Assets Prohibition of the Depository Institution Management Interlocks Act Rules.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a proposed rule that would increase the major assets prohibition thresholds for management interlocks in the agencies’ rules implementing the Depository Institution Management Interlocks Act (DIMIA). The DIMIA major assets prohibition prohibits a management official of a depository organization with total assets exceeding $2.5 billion (or any affiliate of such an organization) from serving at the same time as a management official of an unaffiliated depository organization with total assets exceeding $1.5 billion (or any affiliate of such an organization). DIMIA provides that the agencies may adjust, by regulation, the major assets prohibition thresholds in order to allow for inflation or market changes. The agencies propose to raise the major assets prohibition thresholds to $10 billion to account for changes in the United States banking market since the current thresholds were established in 1996. The agencies also propose three alternative approaches for increasing the thresholds based on market changes or inflation. Comments are due 04/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28038.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 604-612.

Agencies Propose Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests In, and Relationships With, Hedge Funds and Private Equity Funds.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC) issued a proposal to amend the regulations implementing the Bank Holding Company Act’s (BHC Act) prohibitions and restrictions on proprietary trading and certain interests in, and relationships with, hedge funds and private equity funds in a manner consistent with the statutory amendments made pursuant to certain sections of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The statutory amendments exclude from these restrictions certain firms that have total consolidated assets equal to $10 billion or less and total trading assets and liabilities equal to five percent or less of total consolidated assets and amend the restrictions applicable to the naming of a hedge fund or private equity fund to permit an investment adviser that is a banking entity to share a name with the fund under certain circumstances. Comments are due 03/11/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-00797.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2778-2791. 

Agencies Propose Capital Simplification for Qualifying Community Banking Organizations.

The Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) issued a proposal that would provide for a simple measure of capital adequacy for certain community banking organizations, consistent with section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. Under the proposal, most depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets, that meet risk-based qualifying criteria, and that have a community bank leverage ratio (as defined in the proposal) of greater than 9 percent would be eligible to opt into a community bank leverage ratio framework. Such banking organizations that elect to use the community bank leverage ratio and that maintain a community bank leverage ratio of greater than 9 percent would not be subject to other risk-based and leverage capital requirements and would be considered to have met the well capitalized ratio requirements for purposes of section 38 of the Federal Deposit Insurance Act and regulations implementing that section, as applicable, and the generally applicable capital requirements under the agencies’ capital rule. Comments are due 04/09/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2018-27002.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 3062-3094.

Agencies Issue Final Guidance.

The Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC) are adopting this final guidance for the 2019 and subsequent resolution plan submissions by the eight largest, complex U.S. banking organizations. The final guidance is meant to assist these firms in developing their resolution plans, which are required to be submitted pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The final guidance, which is largely based on prior guidance issued to these Covered Companies, describes the Agencies’ expectations regarding a number of key vulnerabilities in plans for an orderly resolution under the U.S. Bankruptcy Code (i.e., capital; liquidity; governance mechanisms; operational; legal entity rationalization and separability; and derivatives and trading activities). The final guidance also updates certain aspects of prior guidance based on the Agencies’ review of these firms’ most recent resolution plan submissions. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00800.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1438-1464.

CFPB Finalizes Amendments to Fair Credit Reporting Act Disclosures.

The Bureau of Consumer Financial Protection (CFPB) is amending Regulation V, which implements the Fair Credit Reporting Act (FCRA), to add a section establishing a maximum allowable charge for disclosures by a consumer reporting agency to a consumer pursuant to FCRA section 609. CFPB is also amending Regulation V to add an appendix setting forth the statutory requirements for determining the maximum allowable charge; announcing the maximum charge for 2019; and preserving a list of historical maximum allowable charges. Historically, CFPB has published these FCRA annual adjustments as a notice. CFPB is now codifying those notices and adding a provision to Regulation V to track the FCRA’s provisions concerning the annual maximum allowable charge. The rule is effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28372.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 515-517.

CFPB Finalizes Home Mortgage Disclosure Adjustment to Asset-Size Exemption Threshold.

CFPB is amending the official commentary that interprets the requirements of the Bureau’s Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). Based on the 2.6 percent increase in the average of the CPI–W for the 12-month period ending in November 2018, the exemption threshold is adjusted to increase to $46 million from $45 million. Therefore, banks, savings associations, and credit unions with assets of $46 million or less as of 12/31/2018, are exempt from collecting data in 2019. The final rule is effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28373.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 513-515.

CFPB Finalizes Amendments to Truth in Lending Act Asset-Size Exemption Threshold.

CFPB is amending the official commentary that interprets the requirements of its Regulation Z (Truth in Lending) to reflect a change in the asset-size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI–W). Based on the 2.6 percent increase in the average of the CPI–W for the 12-month period ending in November 2018, the exemption threshold is adjusted to increase to $2.167 billion from $2.112 billion. Therefore, creditors with assets of less than $2.167 billion (including assets of certain affiliates) as of 12/31/2018, are exempt, if other requirements of Regulation Z also are met, from establishing escrow accounts for higher-priced mortgage loans in 2019. The final rule is effective 02/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2018-28374.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1356-1359.

CFPB Issues Inflation Adjustments for Civil Monetary Penalties.

CFPB finalized amendments to its rule that specifies the time period for which adjusted civil penalty amounts would be applied to conduct within its jurisdiction and is also adjusting specific civil penalty amounts in that rule to account for inflation. The rule is effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00488.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 517-520.

CFPB Issues Policy Guidance on Disclosure of Loan-Level HMDA Data.

CFPB is issuing final policy guidance describing modifications that CFPB intends to apply to the loan-level data that financial institutions report under the Home Mortgage Disclosure Act (HMDA) and Regulation C before the data is disclosed to the public. This final policy guidance applies to HMDA data compiled by financial institutions in or after 2018 and made available to the public by CFPB beginning in 2019. The final policy guidance was released on CFPB’s website on 12/21/2018. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28404.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 649-673.

CFPB Requests Comment on Consumer Credit Card Market.

CFPB is conducting a review of the consumer credit card market. In connection with conducting this review, CFPB is requesting information from the public regarding a number of aspects of the consumer credit card market. Comments are due 05/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00487.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 647-649.

CFPB Requests Comment on Information Collections.

  • CFPB announced it seeks comment on the information collection titled Joint Standards for Assessing the Diversity Policies and Practices. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 04/05/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00901.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1429-1430.
  • CFPB announced it seeks comment on the information collection titled Debt Collection Quantitative Disclosure Testing. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 03/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00905.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1430-1431.
  • CFPB announced it seeks comment on the information collection titled Making Ends Meet Survey. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 03/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00906.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1428-1429.
  • CFPB announced it seeks comment on the information collection titled Generic Information Collection Plan for Studies of Consumers Using Controlled Trials in Field and Economic Laboratory Settings. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2019-01166.pdf. Federal Register, Vol. 84, No. 25, 02/06/2019, 2175-2176.

CFPB Issues Fair Lending Report.

CFPB is issuing its sixth Fair Lending Report of the Bureau of Consumer Financial Protection (Fair Lending Report) to Congress. CFPB is committed to ensuring fair access to credit and eliminating discriminatory lending practices. The report describes CFPB’s fair lending activities in prioritization, supervision, enforcement, rulemaking, interagency coordination, and outreach for calendar year 2017. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01568.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2824-2833. 
 
FRB Finalizes Amendments to Regulation A.

The Board of Governors of the Federal Reserve System (FRB) has adopted final amendments to its Regulation A to reflect FRB’s approval of an increase in the rate for primary credit at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of FRB’s primary credit rate action. The final amendments are effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28423.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 511-512.

FRB Finalizes Amendments to Regulation D.

FRB is amending Regulation D (Reserve Requirements of Depository Institutions) to revise the rate of interest paid on balances maintained to satisfy reserve balance requirements (IORR) and the rate of interest paid on excess balances (IOER) maintained at Federal Reserve Banks by or on behalf of eligible institutions. The final amendments specify that IORR is 2.40 percent and IOER is 2.40 percent, a 0.20 percentage point increase from their prior levels. The amendments are intended to enhance the role of such rates of interest in moving the Federal funds rate into the target range established by the Federal Open Market Committee. The final amendments are effective 01/31/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2018-28424.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 512-513.

FRB Requests Comment on Information Collections.

  • FRB announced it seeks comment on the information collection titled Registration of a Securities Holding Company. FRB also gave notice that it sent the collection to OMB for review. Comments are due 04/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00367.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 716-717.
  • FRB announced it seeks comment on the information collection titled Application Form for Membership on the Community Advisory Council. FRB also gave notice that it sent the collection to OMB for review. Comments are due 04/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00365.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 718-719.
  • FRB announced it seeks comment on the information collection titled Suspicious Activity Report. FRB also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00996.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1732-1734.
  • FRB announced it seeks comment on the information collection titled Recordkeeping Requirements of Regulation H and Regulation K Associated with the Procedures for Monitoring Bank Secrecy Act Compliance. FRB also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01000.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1731-1732.

FDIC Finalizes Amendments to Exception for a Capped Amount of Reciprocal Deposits from Treatment as Brokered Deposits.

The Federal Deposit Insurance Corporation (FDIC) is amending its regulations that implement brokered deposits and interest rate restrictions to conform with recent changes to section 29 of the Federal Deposit Insurance Act made by section 202 of the Economic Growth, Regulatory Relief, and Consumer Protection Act related to reciprocal deposits, which took effect on 05/24/2018. FDIC is also making conforming amendments to FDIC’s regulations governing deposit insurance assessments. The final rule is effective 03/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2018-28137.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1346-1354.

FDIC Finalizes Amendments to Depository Institution Management Interlocks Act.

FDIC finalized a rule in connection with an adjustment of the thresholds for the major assets prohibition of the Depository Institutions Management Interlocks Act (DIMIA) that has been proposed jointly by FDIC with the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System (FRB) through a notice of proposed rulemaking (NPR) published in the Federal Register on 01/31/2019. FDIC has decided to use this opportunity to make two purely technical corrections to FDIC Regulations, both pertaining to DIMIA implementation, by means of a separate final rule without notice and comment. The final rule is effective 02/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01193.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2705-2706.

FDIC Proposes Removal of Transferred OTS Regulations Regarding Lending and Investment.

FDIC proposes to rescind and remove from the Code of Federal Regulations rules entitled ‘‘Lending and Investment’’ (part 390, subpart P) that were transferred to FDIC from the Office of Thrift Supervision (OTS) on 07/21/2011, in connection with the implementation of Title III of the Dodd-Frank Act; amend certain sections of existing FDIC regulations governing real estate lending standards to make it clear that such rules apply to all insured depository institutions for which FDIC is the appropriate Federal banking agency; and amend part 365 by rescinding in its entirety the subpart concerning registration requirements for residential mortgage loan originators because supervision and rulemaking authority in this area was transferred to the Bureau of Consumer Financial Protection (CFPB) by the Dodd-Frank Act. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2018-28084.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1653-1661.

FDIC Requests Comment on Brokered Deposits and Interest Rate Restrictions.

FDIC is undertaking a comprehensive review of the regulatory approach to brokered deposits and the interest rate caps applicable to banks that are less than well capitalized. Since the statutory brokered deposit restrictions were put in place in 1989, and amended in 1991, the financial services industry has seen significant changes in technology, business models, and products. In addition, changes to the economic environment have raised a number of issues relating to the interest rate restrictions. A key part of FDIC’s review is to seek public comment through this Advance Notice of Proposed Rulemaking (ANPR) on the impact of these changes. FDIC will carefully consider comments received in response to this ANPR in determining what actions may be warranted. Comments are due 05/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2018-28273.pdf. Federal Register, Vol. 84, No. 25, 02/06/2019, 2366-2400.  

FDIC Requests Comment on Information Collections.

  • FDIC announced it seeks comment on the information collection titled Market Risk Capital Requirements. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 04/02/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-01/pdf/2019-00558.pdf. Federal Register, Vol. 84, No. 22, 02/01/2019, 1121-1123.
  • FDIC announced it seeks comment on the information collection titled Mutual-to-Stock Conversion of State Savings Banks. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 03/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-01/pdf/2019-00560.pdf. Federal Register, Vol. 84, No. 22, 02/01/2019, 1123-1125.
  • FDIC announced it seeks comment on the information collection titled Privacy of Consumer Information. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 03/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-01/pdf/2019-00561.pdf. Federal Register, Vol. 84, No. 22, 02/01/2019, 1120-1121.

FDIC Issues Terminations of Receiverships.

  • FDIC as Receiver was charged with the duty of winding up the affairs of former depository institutions and liquidating all related assets. The Receiver has fulfilled its obligations and made all dividend distributions required by law. The Receiver has further irrevocably authorized and appointed FDIC-Corporate as its attorney-in-fact to execute and file any and all documents that may be required to be executed by the Receiver which FDIC-Corporate, in its sole discretion, deems necessary, including but not limited to releases, discharges, satisfactions, endorsements, assignments, and deeds. Effective on the termination dates listed in the final column of the chart in the notice, the Receiverships have been terminated, the Receiver has been discharged, and the Receiverships have ceased to exist as legal entities. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2019-01310.pdf. Federal Register, Vol. 84, No. 25, 02/04/2019, 2224-2225.
  • FDIC as Receiver for former depository institutions, intends to terminate its receivership for the institutions listed in the notices. The liquidation of the assets for each receivership has been completed. To the extent permitted by available funds and in accordance with law, the Receiver will be making a final dividend payment to proven creditors. Based upon the foregoing, the Receiver has determined that the continued existence of the receiverships will serve no useful purpose. Consequently, notice is given that the receiverships shall be terminated, to be effective no sooner than thirty days after the date of this notice. If any person wishes to comment concerning the termination of any of the receiverships, such comment must be made in writing, identify the receivership to which the comment pertains, and be sent within thirty days of the date of this notice to: Federal Deposit Insurance Corporation, Division of Resolutions and Receiverships, Attention: Receivership Oversight Department 34.6, 1601 Bryan Street, Dallas, TX 75201. No comments concerning the termination of the above-mentioned receiverships will be considered which are not sent within this time frame. The notices may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01542.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2865.
    https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01027.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1729-1730.

OCC Requests Comment on Information Collections.

  • The Office of the Comptroller of the Currency (OCC) announced it seeks comment on the information collection titled Company-Run Annual Stress Test Reporting Template and Documentation for Covered Institutions under the Dodd-Frank Wall Street Reform and Consumer Protection Act. OCC also gave notice that it sent the collection to OMB for review. Comments are due 03/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00418.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 881-882.
  • OCC announced it seeks comment on the information collection titled Community and Economic Development Entities, Community Development Projects, and Other Public Welfare Investments. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00951.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1821-1822.
  • OCC announced it seeks comment on the information collection titled Domestic First Lien Residential Mortgage Data. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00949.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1823-1824.
  • OCC announced it seeks comment on the information collection titled Interagency Guidance on Asset Securitization Activities. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01114.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1824-1825.
  • OCC announced it seeks comment on the information collection titled Interagency Statement on Complex Structured Finance Transactions. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01076.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1828-1829.
  • OCC announced it seeks comment on the information collection titled Margin and Capital Requirements for Covered Swap Entities. OCC also gave notice that it sent the collection to OMB for review. Comments are due 03/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00952.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1825-1828.
  • OCC announced it seeks comment on the information collection titled Market Risk. OCC also gave notice that it sent the collection to OMB for review. Comments are due 03/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00953.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1829-1830.
  • OCC announced it seeks comment on the information collection titled Reverse Mortgage Products: Guidance for Managing Compliance and Reputation Risks. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01075.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1822-1823.
  • OCC announced it seeks comment on the information collection titled Survey of Minority Owned Institutions. OCC also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-00950.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1830-1831.

FEMA Issues Final Rules on Suspensions of NFIP Community Eligibility.

The Federal Emergency Management Agency (FEMA) issued a final rule which identifies communities in the state of Iowa, where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP) that are scheduled for suspension on the effective dates listed within the final rule because of noncompliance with the floodplain management requirements of the program. If FEMA receives documentation that the community has adopted the required floodplain management measures prior to the effective suspension date given in the final rule, the suspension will not occur and a notice of this will be provided by publication in the Federal Register on a subsequent date. The effective date of each community’s scheduled suspension is the third date listed in the third column of the tables in the final rule. The final rule may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-01/pdf/2019-00699.pdf. Federal Register, Vol. 84, No. 22, 02/01/2019, 978-989.

Treasury Issues Final Rule on Qualified Business Income Deduction.

The Department of the Treasury (Treasury) issued a final rule concerning the deduction for qualified business income under section 199A of the Internal Revenue Code (Code). The regulations will affect individuals, partnerships, S corporations, trusts, and estates engaged in domestic trades or businesses. The regulations also contain an anti-avoidance rule under section 643 of the Code to treat multiple trusts as a single trust in certain cases, which will affect trusts, their grantors, and beneficiaries. The final rule is effective 02/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01025.pdf. Federal Register, Vol. 84. No. 27, 02/08/2019, 2952-3014.

Treasury Proposes Rule on Qualified Business Income Deduction.

Treasury issued proposed regulations concerning the deduction for qualified business income under section 199A of the Internal Revenue Code (Code). The proposed regulations will affect certain individuals, partnerships, S corporations, trusts, and estates. The proposed regulations provide guidance on the treatment of previously suspended losses that constitute qualified business income. The proposed regulations also provide guidance on the determination of the section 199A deduction for taxpayers that hold interests in regulated investment companies, charitable remainder trusts, and split-interest trusts. Comments are due 04/09/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01023.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 3015-3023.

Treasury Announces Pricing for 2019 United States Mint Numismatic Products.

Treasury announced pricing changes and new pricing for some 2019 United States Mint Numismatic Products. The pricing may be viewed in the second column of the chart in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01636.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2949.

FHFA Issues Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions.

The Federal Housing Finance Agency (FHFA) has adjusted the cap on average total assets that is used in determining whether a Federal Home Loan Bank member qualifies as a “community financial institution” (CFI) to $1,199,000,000, based on the annual percentage increase in the Consumer Price Index for all urban consumers (CPI–U), as published by the Department of Labor (DOL). The changes are effective 01/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2019-01154.pdf. Federal Register, Vol. 84, No. 25, 02/06/2019, 2225.

FSA Requests Comment on Information Collection.

The Farm Service Agency (FSA) announced it seeks comment on the information collection titled Farm Loan Programs, Direct Loan Making. FSA also gave notice that it sent the collection to OMB for review. Comments are due 04/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2019-01071.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1700-1701.

FCA Finalizes Amendments to Farmer Mac Investment Eligibility.

The Farm Credit Administration (FCA) issued a final rule adopting amendments to regulations governing the eligibility of non-program investments held by the Federal Agricultural Mortgage Corporation (Farmer Mac) to remove references to, and requirements relating to, credit ratings in compliance with section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The final rule is effective 02/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-08/pdf/2019-01072.pdf. Federal Register, Vol. 84, No. 27, 02/08/2019, 2706-2707.

FCA Issues Inflation Adjustments for Civil Monetary Penalties.

FCA issued inflation adjustments to civil money penalties (CMPs) that FCA may impose or enforce pursuant to the Farm Credit Act of 1971. The inflation adjustments are applicable 01/15/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-04/pdf/2019-00789.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 1354-1356.

FASB Issues Accounting Technical Release 19.

The Federal Accounting Standards Advisory Board (FASB) has issued Federal Financial Accounting Technical Release (TR) 19, Rescission of Technical Release 8. The TR is available on the FASAB website at http://www.fasab.gov/accounting-standards/. Copies can be obtained by contacting FASAB at (202)512–7350. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-31/pdf/2019-00500.pdf. Federal Register, Vol. 84, No. 21, 01/31/2019, 712.

NCUA Issues Inflation Adjustments for Civil Monetary Penalties.

The National Credit Union Administration (NCUA) is amending its regulations to adjust the maximum amount of each civil monetary penalty (CMP) within its jurisdiction to account for inflation. The final rule is effective 02/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-06/pdf/2019-01123.pdf. Federal Register, Vol. 84, No. 23, 02/04/2019, 2052-2056.

NCUA Issues Technical Amendments.

NCUA is issuing a final rule to make technical amendments to various provisions of the NCUA’s regulations. These technical amendments correct minor drafting errors and inaccurate legal citations and remove unnecessary regulatory provisions no longer applicable to federally insured credit unions (FICUs). The amendments are effective 02/05/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-02-05/pdf/2018-27472.pdf. Federal Register, Vol. 84, No. 24, 02/05/2019, 1601-1610.

SSA Issues Inflation Adjustments for Civil Monetary Penalties.

The Social Security Administration (SSA) is giving notice of its updated maximum civil monetary penalties. These amounts are effective from 01/15/2019 through 01/14/2020. These figures represent an annual adjustment for inflation. The updated figures and notification are required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-24/pdf/2019-00091.pdf. Federal Register, Vol. 84, No. 16, 01/24/2018, 360.

SSA Requests Comment on Information Collection.

SSA announced it seeks comment on the information collection titled Request to be Selected as a Payee. SSA also gave notice that it sent the collection to OMB for review. Comments are due 03/26/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-01-25/pdf/2019-00194.pdf. Federal Register, Vol. 84, No. 17, 01/25/2019, 371-377.

By, Ally Bates

In a recent comment letter to FRB and CFPB, WBA voiced support for a recent proposal by the Agencies to use a calculation methodology for implementing a statutory requirement to adjust the dollar amounts in the EFA Act every five years.

In the proposal, the Agencies would release adjusted amounts in the first quarter of 2019 with an effective date of April 1, 2020, to provide appropriate time after issuance for implementation. Subsequent adjustments would be made every five years, with implementation occurring a reasonable period of time thereafter to allow for necessary changes to be made to an institution's systems, disclosures, etc.

WBA supports this proposal and expressed appreciation to the Agencies for acknowledging that frequent or abrupt changes to regulatory requirements cause challenges for institutions trying to stay in compliance.

The proposal from the Agencies also included a request for comment on a previously proposed amendment to Regulation CC from FRB which sought to reduce the period of time within which deposited funds may be held. WBA opposed this proposal when it was initially issued in 2011, and still opposes it today.

View WBA's Comment Letter.

 

By, Ally Bates

Q: Does Negligence Prove Bad Faith Under Wisconsin’s Uniform Fiduciary Act?

A: No. In a recent Wisconsin Supreme Court ruling, the Court found that negligence does not amount to bad faith under the Uniform Fiduciary Act.

On Jan. 29, 2019, The Wisconsin Supreme Court issued its opinion in the Koss Corporation v. Park Bank case (Koss Corp.). The case involved the definition of “bad faith” under Wisconsin’s Uniform Fiduciary Act (UFA). WBA filed an amicus brief as the case worked its way through the court system. Previously, there was little case law in Wisconsin interpreting “bad faith” under the UFA.

Koss Corp. addressed the question of whether a bank can be held liable for the actions of a third party fiduciary. Specifically, whether a bank can be held liable for acting in “bad faith” in its transactions with an employee who embezzled millions from a corporate deposit account. The UFA provides protections from such liabilities and was adopted by Wisconsin in 1925. Section 112.01(9) of the UFA provides standards whereby a bank can obtain protection from claims involving the acts of a customer’s fiduciaries. In this case, that section forms the basis of Koss Corporation’s claim that Park Bank acted in bad faith.

Koss Corporation alleged, based upon 112.01(9), that Park Bank’s transactions were done in bad faith. Because neither 112.01(9) or the rest of the UFA defines bad faith, its definition became the issue before the Court.

The Court ruled that Park Bank did not act in bad faith and negligence does not amount to bad faith.

This ruling is significant in helping banks to understand how to protect themselves from liability when dealing with fiduciaries. WBA recommends that banks consider reviewing their policies and procedures in light of the case and potentially work with their legal counsel for a full analysis of the case's impact.

Read the Court’s opinion here.

 

By, Scott Birrenkott