undefined"No man is an island." – Businesses cannot succeed in serving their customers without the support and services of other businesses that specialize in certain areas, and banks are no exception. Without the services of third-party providers, it would be impossible for banks to provide their customers with the technology, products, and services they demand. Ultimately, a bank's relationship with its vendors is nearly as important as its relationship with its customers. 

That's why, when it comes to contract negotiations, a growing percentage of banks are choosing to engage the services of an outside consultant or attorney (or both) to assist them. When renewal season arrives, each bank must determine whether to go it alone or work with a partner, in addition to several other critical decisions. 

Factors to Consider First

When approaching a contract negotiation, bank leaders should consider three main factors before crafting their action plan: the importance of the vendor's services, how the contract fits with the institution's overall strategic plan, and timing. 

The very first question to ask is "how important is this contract?" because the answer will help determine how much to invest and whether outside assistance is required. "The criticality of the relationship that you're building, whether it's in terms of cost, your customers, or a particular product line, will help determine the amount of time and effort you put in," said Shane Bauer, FVP/Compliance, BSA & Security at Bankers' Bank, Madison. Hypothetically, a bank could put in weeks or months of work to negotiate the most beneficial contract possible with their office supply vendor, but they'd get a much better return on that time and effort by focusing on a technology or data contract instead. 

The next question management should consider is "how does this contract fit into our strategic plan?"; the answer will help the bank define needs, wants, and wishes. "Make sure you understand what you want to get out of the contract," Bauer advised. "What do you absolutely need to have, what will you ask for, and what will you wish for? Knowing that will help you stand your ground on the most important points." Understanding how the contract fits with the bank's strategic plan will also guide negotiations on terms. "One of the questions to think about is how the contract fits within the bank's strategic plan," said Patrick Neuman, attorney at Boardman and Clark, LLP. For example, many core data processor contracts, among others, have early termination fees. "Do you plan to remain independent for the next five years? If so, a five-year term is fine," Neuman explained. "However, if a sale or merger is on the table, then it may be worthwhile to take a hit on pricing in the short term to avoid a large termination fee or negotiating specific termination fees in connection with a sale." 

Finally, banks must consider time constraints when embarking on contract negotiations. Two of the biggest mistakes in contract negotiations are waiting until it's too close to the expiration date to do a thorough review of the contract and missing the expiration date altogether, triggering an auto-renewal. 

Three Common Mistakes to Avoid
  1. Not bundling. Using the same vendor for multiple services but not bundling those services together can be an expensive oversight. "If you bundle services from the same provider you tend to get a better rate and they're typically coterminous," Flynn explained. "If you have overlapping contract expiration dates, it could make it harder to leave that vendor in the future."
  2. Glossing over the boilerplate. "Not paying attention to the boilerplate provisions in a contract can be a mistake," said Neuman. "Nobody wants to read those provisions, but there really are a lot of important terms in the boilerplate that sometimes get overlooked." For example, venue and jurisdiction. If the vendor is located in a different state, the contract likely says that any contractual dispute suits or arbitration need to be brought in the vendor's home state. This puts the bank at a big disadvantage – it's dealing with unfamiliar law and will likely need to hire local counsel, increasing the bank's expense. 
  3. Not shopping around. Many banks are not fully aware of the scope of today's vendor marketplace, especially when it comes to technology providers, according to Flynn. "Don't get comfortable and complacent with a specific vendor, or you could miss significant reduction in expenses or new products and features," she said. "The marketplace is changing so rapidly, especially with the card processing mergers taking place. Sometimes it's beneficial to look around at other providers."

"Set a realistic timeframe for the project," said Kelly Flynn, national sales director – contract optimizer at John M. Floyd & Associates. "If your contract expires within the next six months, you're not giving yourself enough time to really evaluate the contract and whether or not you want to put it out to bid." She recommends starting the process 12-18 months prior to the expiration date. Avoid auto-renewals if at all possible, especially for technology contracts. "As technology advances, costs should go down," Flynn explained. "So, if you let a five-year technology contract auto-renew without sending a nonrenewal letter, chances are you'll end up overpaying. Let the vendor know they will need to earn your business each term." Starting early gives the bank time to set accurate pricing targets. "Efficiency is crucial to a community bank's survival, and much of that starts with making sure you are not overpaying your vendor compared to what the bank next door pays for similar services," said Charlie Kelly, partner at Remedy Consulting.

Regulatory Resources for Contract Negotiation

Choosing a Partner or Flying Solo

After determining the importance of the vendor's services, how the contract fits with the bank's overall strategic plan, and any timing constraints, the next step for bank leadership is to decide whether to enter into the contract negotiation using only in-house talent or to seek assistance from an outside partner. The primary benefits to keeping negotiations in-house are cost, speed, and simplicity. The bank does not need to pay for the services, doesn't need to spend extra time vetting and contracting with a third party before beginning negotiations, and eliminates the complexity of managing another third party.

However, for contracts that meet a certain importance threshold, the cost of keeping negotiations in-house could outweigh the cost of acquiring outside help. "If the cost of getting the contract wrong greatly exceeds the cost of getting assistance, you should get assistance," said Bauer, noting that core processor contracts are where banks most often seek outside help. By working with a third-party consultant or attorney, the bank gains access to valuable experience and information they wouldn't otherwise have. "Many banks simply do not negotiate their core contract frequently enough to know how much they pay compared to their peers, so they do not understand their negotiating strength," Mr. Kelly explained. "This can usually only be solved by bringing in a consultant that has a database of previous negotiations that can provide guidance to the bank."

The number of banks choosing to negotiate important contracts on their own is shrinking, but flying solo still may be the right choice for some institutions. The most important considerations when keeping things in-house is to centralize information. "If you're going it alone, the biggest thing is to stay organized," said Mr. Kelly. "Assign one individual to do the research and own the negotiation. Get organized internally so you know what you are trying to accomplish in price, product, and contract terms and conditions." However, even when electing to negotiate on their own, most community banks today hire an attorney for a legal review of their core data contracts, according to Neuman. "What you're looking for is someone who has experience with these vendors," he said. That familiarity, he explained, can save time and money for the bank because the attorney will see how the contract changes from year to year, allowing revision requests based on previous versions of the contract.

To find the right partner to guide negotiations, the bank should ensure the individual negotiator they'll be working with has deep industry experience. Requesting and verifying client references is one way to do so. It's also critical that leadership make the decision to work with an outside consultant early in the process. "If you're ultimately going to have someone do it for you, make that decision sooner rather than later," Mr. Kelly said. "The later they join, the less effective they can be."

In the end, the most important factor to keep in mind when negotiating third-party contracts is that the negotiation is the beginning of a relationship, one that is an important component of the bank's ability to serve its customers. "The best contract is one where both sides walk away feeling like they got something valuable out of it," said Bauer. "Even though you're playing poker and laying your cards down carefully, you're not trying to beat them. You want to build a good relationship."

Seitz is WBA operations manager and senior writer. 

Bankers' Bank is a WBA Gold Associate Member.
Boardman and Clark, LLP is a WBA Gold Associate Member.
John M. Floyd & Associates is a WBA Bronze Associate Member.
Remedy Consulting is a WBA Associate Member.

By, Amber Seitz

undefinedBanks have needed data processing systems since their inception, initially utilizing hand-written ledger systems to record transaction and customer data. Over the past 70 or so years, however, the digitization of data has created in incredible change within the core processing landscape. Today, the vast majority of banks partner with a third-party vendor for their core processing needs, and that relationship is the foundation for much of how the bank operates. 

After 50 years of relative stability, the core processing landscape is shifting again, forced by dramatic changes in consumer expectations which, in turn, are driven by largely ex-industry influences (Amazon, Google, etc.). The pace of change has also accelerated sharply. A system built 10 (or even five) years ago is nearing obsolescence today. In order to continue serving their customers well, bank leadership must continually survey the core landscape for new opportunities and challenges.

Dominating the Landscape

A handful of core providers dominate today's landscape. This small group of vendors—CSI, Finastra, FIS, Fiserv, Jack Henry, and UFS—hold well over 80% of market share nationwide. In Wisconsin, CSI, FIS, Fiserv, and Jack Henry hold over 95% of market share.*

There are many good reasons this oligopolist system exists. The top four core vendors have not only spent decades learning and mastering the business of banking, but they're large enough to form collections of "best-in-breed" technology products, mainly through acquisition of innovators. "Community banks want integrated solutions for their customers, and that's why ICBA has been at the forefront, having constructive and consistent dialogue with the core providers in order to ensure that the community bank perspective is heard loud and clear," said Kevin Tweddle, CPA, chief operating officer at ICBA Services Network. "We must continue to innovate at the core service provider level."

Regulatory pressure is another driver. Community banks often lack the time and resources to efficiently manage the compliance requirements of working with a large number of vendors. "Community banks don't often want to work with 20 different vendors," said Tweddle. "The benefit of these core providers is they offer a wide range of fairly strong solutions for the community bank in a one-stop-shop, but more can be done to ensure community banks' needs are being fully met." The top established cores also help keep their bank clients in compliance with technology requirements. "Banks depend on their core to provide the most compelling technology and compliance with regulations around technology," said Lisa Gold Schier, senior vice president of business innovation and endorsed solutions at ABA. 

Finally, these well-established vendors provide stability. "That's comforting for many of the banks who work with those established cores," said Gold Shier. If a bank chooses to partner with a newer vendor and that vendor disappears in a decade, the bank will be force to undergo the grueling task of switching cores. 

However, as with any large company, great size often makes for slow change. ABA's Core Platforms Committee, made up of 19 bankers from small and mid-sized institutions, narrowed down a list of concerns related to core services to three key areas of focus: easy access to customer data, more transparent contracts, and open API. "Open API architecture will help banks with technology, allowing them to partner and integrate with companies that offer emerging technologies," explained Gold Schier. "That will allow them to be more nimble in serving their customers." 

Directing change in an industry dominated by a few large players is a tall order, and over the past decade the largest players in the core software space have become larger. In June 2017, Misys and D+H combined to create Finastra, making the joint company the third-largest financial services technology company in the world. Fiserv completed its $22B acquisition of First Data Corporation on July 29, making the combined companies the largest merchant service platform in the world. Just a few days later, on July 31, FIS closed its $43B acquisition of Worldpay, Inc., adding to its payment processing services. "The top three core processors are huge and getting larger," said Viveca Ware, group EVP – regulatory policy at ICBA, who manages the core processing efforts. "It's not a matter of turning one ship, but of turning multiple ships to meet the demands of the marketplace."

Moving Mountains

Established core providers are being pushed to innovate faster by two pressure sources. First is changes within banking as an industry. "Today's core processor is the bank's most important strategic partner and requires ongoing strategic management," Ware explained. "It's no longer in the back room." Instead, the processor is responsible for much of the bank's customer interactions. That means if something is broken or not integrating properly, it's more than a handful of personal bankers or bank technology staff who notice something is wrong… tens of thousands of bank customers will, too. "The industry is changing so quickly based on customer expectations, banks need to quickly adopt technology that allows them to meet their customers' needs," said Gold Schier. "That's what we're looking for from the cores, being able to integrate with technology that allows the banks to compete."

The second source of pressure is fintech, specifically newer firms who are trying to elbow their way into the core vendor space with cutting-edge technology platforms and lightening-speed adaptability. "Some of the fintech companies are forcing the cores to sharpen their pencils," said Tweddle. While ICBA has not invested in or endorsed any core providers, their ThinkTECH Accelerator is entering its second year of operation and has already produced some notable fintech breakouts including MK Decision, which announced a partnership with ICBA's payments services subsidiary, ICBA Bancard, and Invest Sou Sou, winner of a FinovateSpring Best of Show Award. The accelerator, in partnership with The Venture Center in Little Rock, Ark., provides an outlet for community banks to directly engage and partner with early-stage fintech companies focusing exclusively on community bank product development. "As part of that process, we include the core providers because, at some point, they'll need to integrate in some form," Tweddle explained. In addition, the ICBA ThinkTECH Network, launched in 2018, provides member banks with a directory of fintech companies in a variety of areas, including mobile banking, lending, and security. 

To turn some of that pressure into action, ABA reached out to core providers Finastra, FIS, Fiserv, and Jack Henry requesting they spell out how they will adapt to address bankers' concerns, specifically around data access, contracts, and open API. "They're all engaging with us, and we're receiving a lot of communication from the industry, including other core processors and bankers," said Gold Schier. "We feel like we've started an industry dialogue about how we can serve the community by fostering relationships between banks and their processors."

ICBA has also reported positive reception to their outreach with established core providers. In January 2018, they released the Core Processor Resource Guide with best practices for community banks and their core processors. "Our goal was to equip our bankers and their core processors with tools to strengthen that relationship," said Ware. "We were thrilled with the reception we received." In addition to receiving thousands of downloads, the guide was also shared by core processors with their current and prospective bank clients. 

Another way ABA is working to support the banking industry is by supporting new technologies. The association recently invested directly in emerging core banking provider Finxact. "Finxact has the potential to drive market change, and we'll also learn from how they're coming to market," said Gold Schier. Additionally, ABA has invested in Summit Technology Group, a fintech company which helps banks transition to the cloud, and formed a strategic partnership with Alloy Labs Alliance, a shared innovation lab and accelerator. "They help banks foster a culture of innovation and look at how they can effectively and efficiently utilize bank-driven technology," Gold Schier explained. "It's not looking at a shiny object and implementing it."

On the Horizon

So, what's next in bank core processing? Banks should expect further change as both the established providers and the newcomers adapt to consumers' technology demands. "We hope to see increased ability to access technology from third parties and more transparent and open relationships that are focused on helping banks meet their customers' needs," said Gold Schier. Tweddle predicts a "plug and play" system as the pace of change and increased competition from challenger cores continue to force evolution within the industry. "It's an ecosystem where any given bank can plug and play different solutions that are relevant to their particular niche or strategy," he said. 

In Wisconsin, WBA has been working on legislation to help foster better data sharing between banks and their technology vendors, including core processors. FIPCO, a wholly owned subsidiary of the WBA, has been working closely with several core providers over the past few years to develop and implement various integrations with Compliance Concierge, FIPCO's loan and deposit account software. The association will continue to monitor the core landscape and provide member banks with the information and tools they need to serve their customers. 


Insight from the Cores: What are you investing in right now when it comes to financial technology and/or integration capabilities?

"CSI currently is investing significant effort toward a variety of technology initiatives, including CSIbridge, which is our open API platform. It allows our internal systems, our NuPoint core, to seamlessly integrate with customer-facing systems like digital banking, and it also allows third parties to easily integrate with financial institution data. CSI's additional strategic technology initiatives include digital deposit acquisition, business process automation technology, faster/real-time payments, and using data analytics for personalization." – Steve DuPerrieu, vice president of product management for Computer Services, Inc. (CSI)

"Community banks are demanding open, flexible core banking platforms that don't act as roadblocks to innovation. Finastra's Fusion Phoenix core presently meets many of the requirements of an open banking platform, but we continue to make incremental investments to more quickly adapt to the constantly evolving demands of the market and our clients, as well as technological advancements and disruption. It's a continuous journey demanding differentiation and flexibility, and Finastra is committed to leading that development. Our current investment is focused on delivering a best-in-class core with increased automation and workflow capabilities, fully digitized end-to-end user journeys with a superior focus on UI/UX. Investment is also targeted at open access to data and analytics, leveraging AI/ML to streamline onboarding and administration, and back office transformation." – Troy Land, vice president of retail, community markets at Finastra

"Fiserv is focused on driving purposeful innovation through the development and delivery of new solutions, strategic partnerships, and investments in innovative technology. This is done with a view toward what will benefit the people that use our services, whether they are working in a financial institution or a business, or are a consumer end user. We are committed to providing technology solutions that enable our bank clients to deliver differentiated services and reap the full benefit of emerging trends, including the move toward open banking and the delivery of open APIs, and the growing demand for real-time interactions. Fiserv today leverages cloud readiness as a foundational principle, and a wide range of Fiserv solutions, including core account processing platforms, are cloud-ready. We are making our robust API layer accessible to both clients and third parties, enabling them to access and share data, and creating a fintech solution ecosystem that will make it possible for financial institutions to roll out innovative products and services more quickly and cost-effectively. This includes a focus on real-time information and making it possible for developers to incorporate real-time event notification into new applications." – David McIninch, SVP of Strategy, Marketing & Product Management, Bank Solutions at Fiserv

"For over 50 years FIS has led the financial technology industry in delivering solutions that support banks while helping them compete effectively in the markets that they serve. FIS is acutely focused on supporting community banks by delivering our clients the most advanced, flexible, and cost-effective technology solutions available. Some recent investments in innovation include Core on Demand, a streamlined direct bank offering for community banks; the continued evolution of Code Connect, our award-winning API gateway delivering unprecedented access via thousands of APIs to FIS and third-party platforms; our Digital United platform, which enables banks to deliver a modern, seamless experience across both consumer self-service and banker-teller operations; and the modernization of our converged infrastructure and private cloud that have allowed us to implement an industry first self-imposed 15-minute SLA on critical applications." – Rob Lee, EVP, Head of Digital and Banking at FIS

"Openness and integration to third-party solutions has always been an important focus for Jack Henry. Community bankers are dealing with increasingly large, complicated technology experiences, and we always want to make it easy for them to use whichever provider they feel is the best to solve their unique business case. This means that we are amenable to exposing technology connectivity and willing to facilitate real-time connectivity that optimizes the user experience. Openness in data is integral to a bank's future successes as well. Applying data brings a competitive edge, and our acquisition of Geezeo supports easy and open data aggregation. Geezeo cleans, normalizes, and auto-categorizes transaction data to make it understandable and actionable. The acquisition is further evidence of our commitment toward continued innovation in this area." – Stacey Zengel, vice president of Jack Henry & Associates and president of Jack Henry Banking

"UFS, which provides technology to 30% of Wisconsin commercial banks and is owned by 20 community banks, has been investing in platforms that empower bank options. Delivering flexibility, freedom, and efficiency enables our customers to execute on their strategies while leveraging services on par with much larger institutions. Our investment strategy is focused on a bank exclusive private cloud platform, open banking integration, and a cloud-based, multi-tiered cybersecurity solution. Leveraging these investments, we partner with our customers and a variety of fintech organizations to deploy flexible, customized solutions. Most recently, UFS customers have deployed innovative cash management and mortgage lending applications that drive revenue and improve operational efficiencies. Our banking community expects that we prioritize next generation solutions that produce revenue and enhance their leadership in serving business and families in their communities." – Mike Tenpas, CEO at UFS


 

*Listed alphabetically, not by market share. 

Seitz is WBA operations manager and senior writer.

By, Amber Seitz

Q: Is it possible to rely upon a previous flood determination?

A: Yes.

WBA has received numerous calls regarding the new private flood insurance rules. This has also triggered questions related to other components of the flood rules. One common topic is that of prior flood determinations. It is possible to rely on a previous determination for a refinancing or assumption of a loan to the same borrower secured by the same property under certain circumstances.

On July 1, 2009 the prudential federal regulators joined to issue guidance on loans in areas having special flood hazards, including a question and answer. This Q&A was published in the Federal Register Vol. 74, No. 138. Within that publication, Q&A 68 provides that bank may rely on the previous determination only if the original determination was made not more than seven years before the date of the transaction, the basis for the determination was set forth on the Standard Flood Hazard Determination Form, and there were no map revisions or updates affecting the security property since the original determination was made. 

Specifically:

"Reliance on previous determination: Any person increasing, extending, renewing, or purchasing a loan secured by improved real estate or a mobile home may rely on a previous determination of whether the building or mobile home is located in an area having special flood hazards (and shall not be liable for any error in such previous determination), if the previous determination was made not more than 7 years before the date of the transaction and the basis for the previous determination has been set forth on a form under this section, unless—

(1) map revisions or updates pursuant to section 4101(f) of this title after such previous determination have resulted in the building or mobile home being located in an area having special flood hazards; or

(2) the person contacts the Administrator to determine when the most recent map revisions or updates affecting such property occurred and such revisions and updates have occurred after such previous determination."

One common question associated with the Q&A is how map revisions or updates affect the potential for usage. Generally speaking, a bank may not rely on a prior determination If FEMA's map revisions or updates show that the security property has been remapped into an SFHA.

For additional guidance consider page 6 of the FDIC handbook: www.fdic.gov/regulations/compliance/manual/5/v-6.1.pdf

And the July 1, 2009 Q&A: www.fema.gov/media-library-data/20130726-1742-25045-4927/interagency_q_a.pdf

Birrenkott is WBA assistant director – legal. For legal questions, please email wbalegal@wisbank.com.

Note: The above information is not intended to provide legal advice; rather, it is intended to provide general information about banking issues. Consult your institution's attorney for special legal advice or assistance.

 

By, Amber Seitz

Taking care of communities is what community banks do! Learn how First Bank of Baldwin stepped up to serve a community after it was abandoned by a credit union and left without a financial institution in the latest Rose on the Road!

By, Ally Bates

FIPCO Compliance & Management Services: ShareFI

FIPCO Compliance Services, ShareFI, extends beyond the compliance resources already offered through the Wisconsin Bankers Association, like legal calls and the WBA Compliance Journal. Through consulting, coaching, and customized regulation reviews, we deliver practical, step-by-step process improvements, actionable recommendations, and comprehensive staff training – all at a reasonable cost.

ShareFI's variety of services are designed to meet the needs of small- to mid-size financial institutions—including many WBA member banks. Banks who choose FIPCO's ShareFI as their risk and operations management solution will receive consulting, guidance, and shared services from industry experts. Leading the team is Jeff Schmid, who joined FIPCO on July 15 after over three decades of experience in bank compliance and operations, including the examination procedures of FDIC, FRB, and OCC as well as governmental advocacy.

"Many of the other third-party firms who offer these types of services take a one-size-fits-all approach," Schmid explained. "They look at every bank as though it's a billion-dollar bank." ShareFI is designed to allow banks to right-size their experience, utilizing shared services (such as credit analyst roles) and one-off contracts, which are ideal to fill the gap between an unexpected departure and a new hire. It also levels the talent playing field for banks who are not large or complex enough to need full-time compliance staff, enabling them to access the talent and expertise of tenured, certified compliance personnel. 

ShareFI's team of experts will offer services and consulting in two main areas: compliance and management. The compliance side includes services such as risk management, loan review, and BSA review and support. On the management side, banks will have access to assistance with strategic planning, planning and implementing continuous improvement initiatives (such as transitioning to digital file storage), and core review. "We want to help banks find what's right for them," Schmid said of the core review services. "When those contracts come up, having an expert on your side is invaluable."  

ShareFI also features FIPCO's industry-famous customer service and dedication to client success. Unlike some third-party firms who will engage, review, report, and then leave, ShareFI's experts will continue to engage with the bank's management team and continuously report. "Examiners are looking for that ongoing reporting," Schmid explained. "We'll also help banks set up compliance policies if needed. It's about providing long-term support."

Request more info here!

Questions: please contact Jeff via email or 608-441-1220 to discuss what FIPCO's ShareFI can do for your institution.

By, Jen Harder

The below article is the Special Focus section of the August 2019 Compliance Journal. The full issue may be viewed by clicking here.

On July 3, 2019, Governor Tony Evers signed the State 2019-2021 Budget Bill (budget) into law after 78 line-item vetoes. WBA has been tracking the budget since it was introduced earlier this year and now offers this report on some of its more prominent features.

Budget Summary

The budget was presented to Governor Evers on June 28, 2019 and approved with partial veto on July 3, 2019. This version of the budget was just the final stop on a long process that began in the fall of 2018 when state agencies began to formulate their budget requests. The Executive Budget, the budget recommendations provided initially by the governor, was released in February and then Republicans in charge of the Joint Committee on Finance began to pick it apart. Deal-making throughout the summer between Governor Evers and the Legislature got a budget bill to the governor’s desk, which became 2019 Wisconsin Act 9 after the governor’s partial vetoes and signature. Considering this is the first time since the 2007-2009 budget that such a bill was passed under split government, the process went surprisingly smoothly.

WBA’s advocacy team campaigned for the interests of our members and reported on many key issues leading up to the passing of the budget as a way to keep members informed, as well as generate media and public support (in some cases). This long process saw many versions of the budget as different provisions were added and removed. Ultimately, Evers’s initial 1,100-page Executive Budget was whittled down to 500 pages by the Legislature. This article presents the results of the WBA’s efforts in the final budget. 

Highlights

The budget contains no major legislative victories, but also no major losses. While not exciting news, it demonstrates the importance of advocacy for our industry in the coming years. The WBA advocacy team worked hard and long hours on defense to achieve this “neutral” result by preventing many negative items from being added to the budget.

Highlights include provisions from the Tax Cut and Jobs Act (TCJA) proposed to conform Wisconsin’s tax code to the Internal Revenue Code. Those changes, which were ultimately removed from the final budget, would have increased taxation on Wisconsin business by over $362,000,000.* In addition to what was deleted from the final budget, a $500 million income tax cut was ultimately passed.

Select items that WBA followed closely and lobbied on are included in the table below. The table describes the provision, its ultimate outcome in the final budget, and the net impact this has on banking.

Provision Description Outcome Impact
Updating References to the Internal Revenue Code for Corporate Income and Franchise Taxes $12M tax on the banking industry by incorporating federal changes to Federal Deposit Insurance Corporation premium deductibility for banks with asset sizes from $10B to $50B REMOVED POSITIVE
Tax Credit Changes Several tax credit changes were proposed REMOVED NEUTRAL
Gas Tax Proposed 8 cents per gallon gas tax Replaced by $10 increase in registration fees NEUTRAL
Loss Limitation Provision for Taxpayers Other Than Corporations Proposed excess business loss limitation (a $166M increase). Meaning, those business losses by which the total deductions attributable to business exceed total gross income plus $250,000. Affects business gains and loss reporting. REMOVED POSITIVE
Limitation on the Deduction for Business Interest ($156 million increase) This provision would apply to all who have business interest expenses. Taxpayers may generally deduct interest expense paid over a taxable year. However, this limitation restricts the amount of deductible business interest expense to not exceed: 
1) The taxpayer’s business interest income for the year; 2) 30% of the taxpayer’s adjusted taxable income for the year; and 3) The taxpayer’s floor plan financing interest expense for the year
REMOVED POSITIVE
Accounting Rules for Accrual Method Taxpayers ($20M increase) Certain converting S corporations required to change from the overall cash method to an overall accrual method of accounting (as a result of revocation of S corporation election) REMOVED POSITIVE
Limitation on the Deduction of FDIC Premiums For banks with assets greater than $10B, phases out FDIC premium deduction ($12M increase) REMOVED POSITIVE
Limitation on the Deduction for Highly Paid Individuals Proposed modification to limit the deduction that can be taken with respect to compensation for “covered employees” to $1M per year. “Covered employees” are those who: 1) served as principal executive officer; 2) were in the top three highest-paid officers for the year; 3) were a covered employee during a prior tax year beginning in 2016 REMOVED NEUTRAL
Limitation on the Deduction for Entertainment, Amusement, and Recreation Expenses Proposal to eliminate the deduction for any expense related to activities generally considered entertainment, amusement, or recreation REMOVED POSITIVE
Amortization of Research and Experimental Expenditures Proposal to require specific research and experiment expenditures to be capitalized and amortized over a five-year period REMOVED POSITIVE
Wisconsin Economic Development Corporation (WEDC) Changes 14 different changes to WEDC REMOVED NEUTRAL
Increase and Subsequent Indexing of Minimum Wage Increase of statutory minimum wage by $1.00 beginning Jan. 1, 2020, to increase $0.75 each subsequent year for three years REMOVED POSITIVE
Family and Medical Leave Act (FMLA) Expansion Expanded coverage of FMLA in terms of applicability, permitted use, and qualifications REMOVED NEUTRAL
Increased Concentrated Animal Feeding Operations (CAFO) Fees Increased annual fee assessed to operators of CAFOs and added an application and renewal fee for the operation of a CAFO REMOVED NEUTRAL
Legalization of Medicinal Marijuana Funding to establish a medical marijuana program REMOVED NEUTRAL
Codifying Obamacare Into State Statute Accepts the federal Affordable Care Act’s provision for Medicaid REMOVED NEUTRAL
Property Taxes Increase Proposal to increase property taxes by a minimum of 2% per year REMOVED POSITIVE
Repeal of State Pre-Emption of Certain Employment Local Ordinances Repeal prohibition on local governments enacting ordinances regarding: 1) Minimum family and medical leave requirements; 2) Wage claims and collections; 3) Employee hours and overtime; 4) Required employment benefits; and 5) Solicitation of a prospective employee’s salary history REMOVED NEGATIVE
Creation of a Tax-Advantaged First-Time Homebuyer Savings Account Proposal to create savings accounts that permit certain contributions as exempt from state taxation REMOVED NEGATIVE
Historic Rehabilitation Tax Credit Changes Proposals to apply awards under the rehabilitation credit program on a per project basis rather than a per parcel basis and repeal the state’s supplement (given the repeal at the federal level) REMOVED POSITIVE
Repeal of Net Operating Loss Carryback Proposed repeal of state net operating loss carryback provisions to parallel the federal repeal REMOVED NEGATIVE
Amend Calculation of Low-Income Housing Tax Credit Proposal to add back low-income housing credits to taxable income of the entity claiming the credit REMOVED NEUTRAL
Limit Capital Gains Exclusion Proposal to eliminate the long-term capital gains exclusion for filers above certain income levels REMOVED NEUTRAL
Real Estate Transfer Fee Exemption Exemption for transfers from a subsidiary corporation to its parent corporation does not apply in cases where a non-corporate entity owns a majority of shares in the corporation. Specifies that the exemption does not apply to conveyances between different owners REMOVED POSITIVE
Student Loan Refinancing Study  Creation of an advisory group to study the development of an authority for the refinancing of student loans REMOVED NEUTRAL
Dark Store Legislation Reforms to assessment practices to clarify the assessment of leased property to specify that real property be assessed for property tax purposes at its highest and best use and that real property includes leases, rights and privileges pertaining to the property REMOVED NEUTRAL
Undocumented Immigrant Driver’s License Creation Extension of eligibility to receive driver’s licenses and identification cards for undocumented individuals if they comply with the driver knowledge and skills requirement REMOVED NEUTRAL
Bonding for New Water Lines Clean water fund program expanded to include bonding for safe drinking water loan program PASSED NEUTRAL
DATCP Industrial Hemp Program Funding for three additional agency positions PASSED POSITIVE
Wisconsin Forestry Practice Study Funding for the implementation of recommendations made in the Wisconsin Forestry Practices Study PASSED NEUTRAL

Conclusion
 
The budget process was surprisingly tame this year. Although the banking industry did not gain anything major, it also did not suffer any major loss. WBA was on the front line throughout the process, working to ensure the voice of Wisconsin’s banks was heard by decision-makers, even on topics that would only indirectly affect banks. Regardless of its impact on Wisconsin’s banks, the state budget is an important process that provides insight into what the governor and the Wisconsin Legislature currently consider important.

For more information on WBA’s Advocacy efforts contact Mike Semmann at msemmann@wisbank.com.

*All figures derived from the Wisconsin Legislative Fiscal Bureau.

By, Ally Bates

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

FTC announced Equifax Inc. has agreed to pay at least $575 million, and potentially up to $700 million, as part of a global settlement with FTC, CFPB, and 50 U.S. states and territories, which alleged that the credit reporting company’s failure to take reasonable steps to secure its network led to a data breach in 2017 that affected approximately 147 million people. The announcement may be viewed at: https://www.ftc.gov/news-events/press-releases/2019/07/equifax-pay-575-million-part-settlement-ftc-cfpb-states-related


NCUA issued a regulatory alert regarding the 2018 Farm Bill and industrial hemp. NCUA states some credit unions have lawfully operating hemp businesses within their fields of membership. Businesses dealing with hemp and hemp-derived products include manufacturing, distribution, shipping, and retail, among others. With recent changes in federal law, more hemp-related businesses may be founded, and existing ones may expand. Growth in hemp-related commerce could provide new economic opportunities for some communities, and will create a need for such businesses to be able to access capital and financial services. Credit unions may provide the customary range of financial services for business accounts, including loans, to lawfully operating hemp related businesses within their fields of membership. The alert may be viewed at: https://www.ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/serving-hemp-businesses


FRB, FDIC, OCC, and NCUA issued a joint statement on risk-focused Bank Secrecy Act/anti-money laundering supervision. The statement is intended to improve transparency into the risk-focused approach used for planning and performing BSA/AML examinations. The extent of examination activities necessary to evaluate a bank’s BSA/AML compliance program generally depends on the risk profile of the bank and the quality of processes implemented by the bank to identify, measure, monitor, and control risk and to report potential money laundering, terrorist financing, and other illicit financial activity. The statement may be viewed at: https://www.fdic.gov/news/news/press/2019/pr19065a.pdf


OCC released an update to the Bank Accounting Advisory Series (BAAS). The BAAS covers a variety of topics and promotes consistent application of accounting standards among national banks and federal savings associations. The new edition of the BAAS reflects accounting standards issued by the Financial Accounting Standards Board on such topics as hedging and credit losses. Additionally, the new edition includes recent answers to frequently asked questions from the industry and examiners. The update may be viewed at: https://www.occ.gov/publications/publications-by-type/other-publications-reports/pub-bank-accounting-advisory-series.pdf


OFAC has opened registration for the OFAC 2019 Fall Symposium. The symposium will be a comprehensive review of OFAC and current U.S. economic sanctions, including presentations on OFAC regulations affecting all U.S. persons, as well as targeted reviews of sanctions concerns for new and updated OFAC programs. In addition to formal presentations, OFAC staff will be available throughout the day to answer questions on issues unique to a number of regulated industries. Registration information may be viewed at: http://www.cvent.com/events/ofac-2019-fall-symposium/event-summary-3b1af6025b1a4d5d9ca214e9e1f9701f.aspx?RefID=Event%20Summary


FASB formally issued its proposal to delay the implementation of the current expected credit loss standard until January 2023 for certain companies. The delay would apply to small reporting companies (as defined by the SEC), non-SEC public companies and private companies. The exposure draft of the proposal may be viewed at: https://www.fasb.org/jsp/FASB/Document_C/DocumentPage?cid=1176173176157&acceptedDisclaimer=true


FHFA is making make several changes to the Uniform Residential Loan Application, including the removal of a question asking applicants to indicate their preferred language. As a result of the changes, FHFA also announced that it will postpone the deadlines for the implementation of the URLA and automated underwriting system. FHFA said it plans to assess how the changes will affect the timeline and will provide a new implementation date soon. The notice may be viewed: https://www.fanniemae.com/content/news/urla-announcement-august-2019.pdf


The State Bar of Wisconsin has posted revised Transfer by Affidavit forms to its website. The forms may be viewed at: https://www.wisbar.org/forPublic/INeedInformation/Pages/Probate.aspx#affidavit


CFPB released TRID frequently asked questions on providing Loan Estimates to consumers. The FAQs may be viewed at: https://www.consumerfinance.gov/policy-compliance/guidance/tila-respa-disclosure-rule/tila-respa-integrated-disclosure-faqs/


FDIC has published its 2019 Risk Review. The Risk Review provides a summary of risks that ultimately may affect FDIC-insured institutions and the FDIC’s Deposit Insurance Fund. Much of the discussion focuses on risks that may affect community banks. The full review may be viewed at: https://www.fdic.gov/bank/analytical/risk-review/index.html


FDIC released its July 2019 edition of the FDIC Consumer News. The July edition provides information for consumers applying for their first mortgage. The FDIC Consumer News may be viewed at: https://www.fdic.gov/consumers/consumer/news/july2019.pdf


Treasury Department and the IRS introduced a redesigned Form W-4 for tax year 2020. Several changes were made to the draft form based on extensive feedback from stakeholders with the goal of developing a form that provides taxpayers with a more flexible and transparent withholding system. Treasury does not anticipate further changes to the redesign beyond minor updates for inflation. The announcement may be viewed at: https://home.treasury.gov/news/press-releases/sm753


HUD announced the FHFA will insure mortgages on mixed-use development under the agency’s Section 220 Program in thousands of lower income communities across the country. FHA’s Section 220 Program insures lenders against loss on mortgage default. Historically, Section 220 has provided good quality rental housing in downtown urban areas that have been targeted for overall revitalization. Today’s announcement expands eligibility of mortgages insured under this program to all 8,764 Opportunity Zones, including those located in rural areas. The announcement may be viewed at: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_19_120


The NMLS Industry Terms of Use have been updated. Effective August 10, when NMLS users log into the system, they will be required to accept the new terms of use. The updated Terms of Use may be viewed at: https://mortgage.nationwidelicensingsystem.org/about/Pages/Policies.aspx


FRB posted its June 2019 G.19 Consumer Credit statistics, which indicate consumer credit increased at a seasonally adjusted annual rate of 5 percent during the second quarter. Revolving credit increased at an annual rate of 5-1/4 percent, while nonrevolving credit increased at an annual rate of 4-3/4 percent. In June, consumer credit increased at an annual rate of 4-1/4 percent. The report may be viewed at: https://www.federalreserve.gov/releases/g19/current/default.htm

By, Ally Bates

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

Agencies Propose Regulatory Capital Rules Regarding Treatment of Land Development Loans.

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 notice of proposed rulemaking to seek comment on the treatment of loans that finance the development of land for purposes of the one- to four-family residential properties exclusion in the definition of high volatility commercial real estate (HVCRE) exposure in the agencies’ regulatory capital rule. The proposal expands upon the notice of proposed rulemaking (HVCRE NPR) issued on 09/28/2018, which proposed to revise the definition of HVCRE exposure in the regulatory capital rule to conform to the statutory definition of “high volatility commercial real estate acquisition, development, or construction (HVCRE ADC) loan,” in accordance with section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). Comments are due 08/22/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-23/pdf/2019-15332.pdf. Federal Register, Vol. 84, No. 141, 07/23/2019, 35344-35352.

Agencies Issue Correction to 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 Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC) published a final rule in the Federal Register on 07/22/2019, that adopted final rules to amend regulations implementing Section 13 of the Bank Holding Company Act (the Volcker Rule) in a manner consistent with the statutory amendments made pursuant to certain sections of the Economic Growth, Regulatory Relief, and Consumer Protection Act. The document corrects errors in amendatory instructions in the rule. The corrections are effective 08/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-06/pdf/2019-16634.pdf. Federal Register, Vol. 84, No. 151, 08/06/2019, 38115.

Agencies Issue Notice of Funds Availability for Market Facilitation Program.

The Farm Service Agency (FSA), and the Commodity Credit Corporation (CCC) announces the availability of Market Facilitation Program (MFP) funds for eligible producers of specified agricultural commodities for 2019 that include certain non-specialty crops, specialty crops, dairy, and livestock as specified in the NOFA. On behalf of the Commodity Credit Corporation (CCC), the Farm Service Agency (FSA) will administer MFP. MFP dairy and livestock payments will be calculated on the eligible production amount multiplied by the participant’s share in the commodity multiplied by the MFP payment rate. MFP participants of non-specialty and specialty crops will receive an MFP payment based upon the participant’s ownership interest in the 2019 crop that was planted and reported to FSA for the 2019 crop year, including cover crops that are planted for harvest following a prevented planted non-specialty crop. The payment rate used by CCC to issue payments for non-specialty crops will be on a county-by-county basis and reflects the amount of damage incurred in a county by producers of the non-specialty crops from the imposition of tariffs by other countries on U.S. agricultural products. The payment rate for specialty crops will be on a state-by-state basis if sufficient data is available, otherwise payments will be on a national basis. The NOFA also announces the availability of 2018 MFP payments for a limited number of producers who are now eligible for assistance as the result of a provision of the Additional Supplemental Appropriations For Disaster Relief Act, 2019 (2019 Disaster Relief Act). The application is 07/29/2019 through 12/06/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-15767.pdf. Federal Register, Vol. 84, No. 145, 07/29/2019, 36565-36567.

CFPB Finalizes Amendments to Truth in Lending Annual Threshold Adjustments.

The Bureau of Consumer Financial Protection (CFPB) issued a final rule amending the regulation text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). CFPB is required to calculate annually the dollar amounts for several provisions in Regulation Z; this final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). CFPB is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on 06/01/2019. The final rule is effective 01/01/2020. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-01/pdf/2019-16300.pdf. Federal Register, Vol. 84, No. 148, 08/01/2019, 37565-37570.

CFPB Issues ANPR on Qualified Mortgage Definition Under Regulation Z.

CFPB issued an ANPR on the definition of “qualified mortgage” under Regulation Z. With certain exceptions, Regulation Z requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay any residential mortgage loan, and loans that meet Regulation Z’s requirements for “qualified mortgages” obtain certain protections from liability. One category of qualified mortgages (QMs) is loans that are eligible for purchase or guarantee by either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac). Under Regulation Z, this category of QMs (Temporary GSE QM loans) is scheduled to expire no later than 01/10/2021. CFPB currently plans to allow the Temporary GSE qualified mortgage (QM) loan category to expire in January 2021 or after a short extension, if necessary, to facilitate a smooth and orderly transition away from the Temporary GSE QM loan category. CFPB is considering whether to propose revisions to Regulation Z’s general qualified mortgage definition in light of that planned expiration and is issuing an ANPR to request information about possible revisions. Comments are due 09/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-31/pdf/2019-16298.pdf. Federal Register, Vol. 84, No. 147, 07/31/2019, 37155-37162.

CFPB Extends Comment Period for Debt Collection Practices.

CFPB published a Notice of Proposed Rulemaking (NPRM) requesting comment on CFPB’s proposed amendments to Regulation F which implements the Fair Debt Collection Practices Act (FDCPA) in the Federal Register on 05/21/2019. The proposed amendments would prescribe Federal rules governing the activities of debt collectors, as that term is defined in the FDCPA. The NPRM provided a 90-day comment period that was set to close on 08/19/2019. To allow interested persons more time to consider and submit their comments, CFPB has determined that an extension of the comment period until 09/18/2019, is appropriate. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-02/pdf/2019-16476.pdf. Federal Register, Vol. 84, No. 149, 08/02/2019, 37806-37807.

CFPB Extends Comment Period for Home Mortgage Disclosure.

CFPB published a proposed rule in the Federal Register on 05/13/2019 (May 2019 Proposal). The May 2019 Proposal proposed amendments to Regulation C relating to the coverage thresholds for reporting data on closed-end mortgage loans and open-end lines of credit and partial exemptions under the Home Mortgage Disclosure Act (HMDA). To facilitate the potential revisions of the thresholds that CFPB proposed to take effect on 01/01/2020, CFPB provided a 30-day comment period, which ended on 06/12/2019. Later this summer, the national loan level dataset for 2018 and CFPB’s annual overview of residential mortgage lending based on that data (collectively, the 2018 HMDA Data) will be released. Stakeholders have asked to submit comments on the May 2019 Proposal that reflect the 2018 HMDA Data. To allow for the submission of such comments, CFPB now reopens the comment period on certain aspects of the proposal until 10/15/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-02/pdf/2019-16190.pdf. Federal Register, Vol. 84, No. 149, 08/02/2019, 37804-37806.

CFPB Requests Comment on Information Collections.

  • CFPB announced it seeks comment on the information collection titled Equal Access to Justice Act. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 08/28/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-16006.pdf. Federal Register, Vol. 84, No. 145, 07/29/2019, 36591-36592.
  • CFPB announced it seeks comment on the information collection titled Trail Disclosure Policy. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 08/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-31/pdf/2019-16239.pdf. Federal Register, Vol. 84, No. 147, 07/31/2019, 37263.
  • CFPB announced it seeks comment on the information collection titled Applications for Advisory Committees. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 08/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-31/pdf/2019-16304.pdf. Federal Register, Vol. 84, No. 147, 07/31/2019, 37263-37264.
  • CFPB announced it seeks comment on the information collection titled Policy On No-Action Letters and Compliance Assistance Sandbox Policy. CFPB also gave notice that it sent the collection to OMB for review. Comments are due 09/05/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-06/pdf/2019-16919.pdf. Federal Register, Vol. 84, No. 151, 08/05/2019, 38247-38248. 

FRB Requests Comment on Information Collections.

  • The Board of Governors of the Federal Reserve System (FRB) announced it seeks comment on the information collection titled Report of Selected Balance Sheet Items for Discount Window Borrowers. FRB also gave notice that it sent the collection to OMB for review. Comments are due 09/17/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-19/pdf/2019-15365.pdf. Federal Register, Vol. 84, No. 139, 07/19/2019, 34890-34892.
  • FRB announced it seeks comment on the information collection titled Capital Assessments and Stress Testing Reports. FRB also gave notice that it sent the collection to OMB for review. Comments are due 09/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-31/pdf/2019-16340.pdf. Federal Register, Vol. 84, No. 147, 07/31/2019, 37292-37302.
  • FRB announced it seeks comment on the information collection titled Capital Assessments and Stress Testing Reports. FRB also gave notice that it sent the collection to OMB for review. Comments are due 09/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-31/pdf/2019-16341.pdf. Federal Register, Vol. 84, No. 147, 07/31/2019, 37285-37292.
  • FRB announced it seeks comment on the information collection titled Savings and Loan Holding Company Registration Statement. FRB also gave notice that it sent the collection to OMB for review. Comments are due 10/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-08/pdf/2019-17007.pdf. Federal Register, Vol. 84, No. 153, 08/08/2019, 38964-38965.

FRB Announces Actions To Support Interbank Settlement of Faster Payments. 

FRB has determined that the Federal Reserve Banks (Reserve Banks) should develop a new interbank 24x7x365 real-time gross settlement service with integrated clearing functionality to support faster payments in the United States. The new service would support depository institutions’ provision of end-to-end faster payment services and would provide infrastructure to promote ubiquitous, safe, and efficient faster payments in the United States. In addition, FRB intends to explore expanded hours for the Fedwire Funds Service and the National Settlement Service, up to 24x7x365, to support a wide range of payment activities, including liquidity management in private-sector real-time gross settlement services for faster payments. Subject to the outcome of additional analysis of relevant operational, risk, and policy considerations, FRB will seek public comment separately on plans to expand hours for the Fedwire Funds Service and the National Settlement Service. Comments are due 11/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-09/pdf/2019-17027.pdf. Federal Register, Vol. 84, No. 154, 08/09/2019, 39297-39322.

FDIC Finalizes Amendments to Recordkeeping for Timely Deposit Insurance Determination.

The Federal Deposit Insurance Corporation (FDIC) is amending its rule entitled “Recordkeeping for Timely Deposit Insurance Determination” to clarify the rule’s requirements, better align the burdens of the rule with the benefits, and make technical corrections. The amendments are effective 10/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-30/pdf/2019-15535.pdf. Federal Register, Vol. 84, No. 146, 07/30/2019, 37020-37052.

FDIC Issues Terminations of Receivership.

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-2019-07-11/pdf/2019-14746.pdf. Federal Register, Vol. 84, No. 133, 07/11/2019, 33068-33069.
https://www.govinfo.gov/content/pkg/FR-2019-08-07/pdf/2019-16804.pdf. Federal Register, Vol. 84, No. 152, 08/07/2019, 38630.

FDIC Requests Comment on Information Collection.

FDIC announced it seeks comment on the information collection titled Appraisal for Higher-Priced Mortgage Loans. FDIC also gave notice that it sent the collection to OMB for review. Comments are due 09/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-16/pdf/2019-15035.pdf. Federal Register, Vol. 84, No. 136, 07/16/2019, 33943-33944. 34890-34892.

OCC Requests Comment on Information Collections.

  • The Office of the Comptroller of the Currency (OCC) announced it seeks comment on the information collection titled Lending Limits. OCC also gave notice that it sent the collection to OMB for review. Comments are due 08/26/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-26/pdf/2019-15861.pdf. Federal Register, Vol. 84, No. 144, 07/26/2019, 36161-36162.
  • OCC announced it seeks comment on the information collection titled Privacy of Consumer Financial Information. OCC also gave notice that it sent the collection to OMB for review. Comments are due 08/26/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-26/pdf/2019-15862.pdf. Federal Register, Vol. 84, No. 144, 07/26/2019, 36162-36164.
  • OCC announced it seeks comment on the information collection titled FFIEC Cybersecurity Assessment Tool. OCC also gave notice that it sent the collection to OMB for review. Comments are due 08/28/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-15964.pdf. Federal Register, Vol 84, No. 145, 07/29/2019, 36659-36662.
  • OCC announced it seeks comment on the information collection titled Minimum Security Devices and Procedures, Reports of Suspicious Activities, and Bank Secrecy Act Compliance Program. OCC also gave notice that it sent the collection to OMB for review. Comments are due 08/28/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-15959.pdf. Federal Register, Vol 84, No. 145, 07/29/2019, 36658-36659.
  • OCC announced it seeks comment on the information collection titled Municipal Securities Dealers and Government Securities Brokers and Dealers—Registration and Withdrawal. OCC also gave notice that it sent the collection to OMB for review. Comments are due 08/28/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-15962.pdf. Federal Register, Vol 84, No. 145, 07/29/2019, 36662-36664.

FFIEC Finalizes Order Granting in Part Temporary Waiver Relief.

The Federal Financial Institutions Examination Council (FFIEC) issued a final order pursuant to section 1119(b) of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended (Title XI) and the rules promulgated thereunder. This order grants in part, with specified terms and conditions, and with the FFIEC concurrence, a request for temporary waiver relief received from Governor Doug Burgum, State of North Dakota, the North Dakota Department of Financial Institutions, and the North Dakota Bankers Association, notice of which was published in the Federal Register on 05/30/2019. The order was applicable 08/07/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-07/pdf/2019-16908.pdf. Federal Register, Vol. 84, No. 152, 08/07/2019, 38630-38633.

HUD Announces Termination of Direct Endorsement.

The Department of Housing and Urban Development (HUD) issued a notice advising of the cause and effect of termination of Direct Endorsement (DE) approval taken by HUD’s Federal Housing Administration (FHA) against HUD-approved mortgagees through the FHA Credit Watch Termination Initiative. The notice includes a list of mortgagees that have had their DE Approval terminated. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-16/pdf/2019-15072.pdf. Federal Register, Vol. 84, No. 136, 07/16/2019, 33961-33962.

HUD Announces Section 108 Loan Guarantee Program Fee to Cover Credit Subsidy Costs for FY 2020.

HUD announced the fee it will collect from borrowers of loans guaranteed under HUD’s Section 108 Loan Guarantee Program (Section 108 Program) to offset the credit subsidy costs of the guaranteed loans pursuant to commitments awarded in Fiscal Year 2020. HUD sets the fee for Section 108 loan disbursements under loan guarantee commitments awarded for FY 2020 at 2.00 percent of the principal amount of the loan. For the fee announcement, HUD is not changing the underlying assumptions or creating new considerations for borrowers. The fee is applicable 10/01/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-23/pdf/2019-15627.pdf. Federal Register, Vol. 84, No. 141, 07/23/2019, 35299-35301.

HUD Requests Comment on Information Collections.

  • HUD announced it seeks comment on the information collection titled Housing Counseling Program. HUD also gave notice that it sent the collection to OMB for review. Comments are due 09/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-16/pdf/2019-15071.pdf. Federal Register, Vol. 84, No. 136, 07/16/2019, 33960-33961.
  • HUD announced it seeks comment on the information collection titled Ginnie Mae Mortgage-Backed Securities Guide. HUD also gave notice that it sent the collection to OMB for review. Comments are due 09/17/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-19/pdf/2019-15416.pdf. Federal Register, Vol. 84, No. 139, 07/19/2019, 34919-34922.
  • HUD announced it seeks comment on the information collection titled Mark-to-Market Program: Requirements for Community-Based Non-Profit Organizations and Public Agencies. HUD also gave notice that it sent the collection to OMB for review. Comments are due 09/17/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-19/pdf/2019-15415.pdf. Federal Register, Vol. 84, No. 139, 07/19/2019, 34919.
  • HUD announced it seeks comment on the information collection titled Multifamily Housing Procedures for Projects Affected by Presidentially-Declared Disasters. HUD also gave notice that it sent the collection to OMB for review. Comments are due 09/17/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-19/pdf/2019-15414.pdf. Federal Register, Vol. 84, No. 139, 07/19/2019, 34922.
  • HUD announced it seeks comment on the information collection titled Nonprofit Application and Recertification for FHA Mortgage Insurance Programs. HUD also gave notice that it sent the collection to OMB for review. Comments are due 09/23/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-23/pdf/2019-15629.pdf. Federal Register, Vol. 84, No. 141, 07/23/2019, 35415-35416.

FEMA Issues Final Flood Elevation Determination. 

The Federal Emergency Management Agency (FEMA) has made final Base (1-percent-annual-chance) Flood Elevations (BFEs) and modified BFEs for communities in the state of Minnesota. The BFEs and modified BFEs are the basis for the floodplain management measures that each community is required either to adopt or to show evidence of being already in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP). The effective date is the date of issuance of the Flood Insurance Rate Map (FIRM) showing BFEs and modified BFEs for each community. This date may be obtained by contacting the office where the maps are available for inspection as indicated in the table in the final rule. The final rule may viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-01/pdf/2019-16410.pdf. Federal Register, Vol. 84, No. 148, 08/01/2019, 37610-37611.

FEMA Issues Final Rules on Suspensions of NFIP Community Eligibility.

  • FEMA issued a final rule which identifies communities in the states of Illinois, and Nebraska, 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-2019-07-25/pdf/2019-15765.pdf. Federal Register, Vol. 84, No. 143, 07/25/2019, 35833-35836. 
  • FEMA issued a final rule which identifies communities in the states of Michigan, Minnesota, and Ohio, 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-2019-08-07/pdf/2019-16806.pdf. Federal Register, Vol. 84, No. 152, 08/07/2019, 38563-38566.

FEMA Issues Final Flood Hazard Determinations.

FEMA has issued a final notice which identifies communities in the states of Iowa, and Ohio, where flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in FEMA’s National Flood Insurance Program (NFIP). The final notice is effective 12/20/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-08/pdf/2019-17020.pdf. Federal Register, Vol. 84, No. 153, 08/08/2019, 39008-39010.

FEMA Issues Final Notices of Changes in Flood Hazard Determinations.

FEMA issued new or modified Base (1% annual-chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) for communities in the states of Illinois, Michigan, and Wisconsin. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities. The flood hazard determinations modified by each LOMR will be used to calculate flood insurance premium rates for new buildings and their contents. The effective date for each LOMR is indicated in the table in the final notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-01/pdf/2019-16412.pdf. Federal Register, Vol. 84, No. 148, 08/01/2019, 37665-37668.

FEMA Issues Proposed Flood Hazard Determinations.

  • FEMA has requested comments on proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for communities in the state of Iowa. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP). Comments are due 10/17/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-19/pdf/2019-15337.pdf. Federal Register, Vol. 84, No. 139, 07/19/2019, 34910-34911.
  • FEMA has requested comments on proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for communities in the states of Iowa, Michigan, and Minnesota. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP). Comments are due 10/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-01/pdf/2019-16414.pdf. Federal Register, Vol. 84, No. 148, 08/01/2019, 37661-37663.

Treasury Finalizes Requirement to Notify IRS of Intent to Operate as a Section 501(c)(4) Organization.

The Department of the Treasury (Treasury) finalized regulations relating to the section 506 requirement, added by the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act), enacted on 12/18/2015, that organizations described in section 501(c)(4) of the Internal Revenue Code (Code) must notify the Internal Revenue Service (IRS), no later than 60 days after their establishment, of their intent to operate under section 501(c)(4). The regulations are effective 07/19/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-23/pdf/2019-15614.pdf. Federal Register, Vol. 84, No. 141, 07/23/2019, 35301-35307.

Treasury Requests Comment on Information Collections.

  • Treasury announced it seeks comment on the information collection titled Request for Transcript of Tax Return and IVES Request for Transcript of Tax Return. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 09/23/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-24/pdf/2019-15705.pdf. Federal Register, Vol. 84, No. 142, 07/24/2019, 35709-35710.
  • Treasury announced it seeks comment on the information collection titled Security Summit application process. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 08/28/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-15984.pdf. Federal Register, Vol. 84, No. 145, 07/29/2019, 36664-36664.
  • Treasury announced it seeks comment on the information collection titled U.S. Employment Tax Returns and Related Forms. Treasury also gave notice that it sent the collection to OMB for review. Comments are due 09/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-01/pdf/2019-16381.pdf. Federal Register, Vol. 84, No. 148, 08/01/2019, 37711-37714.

FHFA Issues Orders on Reporting by Regulated Entities of Stress Testing Results. 

The Federal Housing Finance Agency (FHFA) issued Orders, dated 03/05/2019, with respect to stress test reporting as of December 31, 2018, under section 165(i)(2) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). Summary Instructions and Guidance accompanied the Orders to provide testing scenarios. The Orders are applicable 03/05/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-25/pdf/2019-15766.pdf. Federal Register, Vol. 84, No. 143, 07/25/2019, 35811.

SBA Issues Interim Final Rule on Monetary-Based Industry Size Standards.

The Small Business Administration (SBA) is adjusting the monetary-based industry size standards (i.e., receipts- and assets-based) for inflation that has occurred since the last adjustment in 2014. These size standards will be reviewed again as part of the ongoing second 5-year review of size standards, as mandated by the Small Business Jobs Act of 2010 (Jobs Act). Also adjusted for inflation are receipts-based size standards that apply to sales or leases of Government property and stockpile purchases. The rule is effective 08/19/2019, comments are due 09/16/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-18/pdf/2019-14980.pdf. Federal Register, Vol. 84, No. 138, 07/18/2019, 34261-34281.

SBA Requests Comment on Information Collection.

SBA announced it seeks comment on the information collection titled Federal Agency Comment Form. SBA also gave notice that it sent the collection to OMB for review. Comments are due 08/19/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-18/pdf/2019-15308.pdf. Federal Register, Vol. 84, No. 138, 07/18/2019, 34467-34468.

RBC Invites Applications for Rural Economic Development Loan and Grant Programs for Fiscal Year 2020. 

The Rural Business-Cooperative (RBC) invites applications for loans and grants under the Rural Economic Development Loan and Grant (REDLG) Programs for fiscal year (FY) 2020, subject to the availability of funding. This notice is being issued in order to allow applicants sufficient time to leverage financing, prepare and submit their applications, and give RBC time to process applications within FY 2020. Successful applications will be selected by RBC for funding and subsequently awarded to the extent that funding may ultimately be made available through appropriations. Important dates for applicants are listed in the notice. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-18/pdf/2019-15263.pdf. Federal Register, Vol. 84, No. 138, 07/18/2019, 34333-34337.

CCC Finalizes Regulations on Trade Mitigation Program.

The Commodity Credit Corporation (CCC) is revising the regulations to implement a Trade Mitigation Program (TMP) for producers of 2019 agricultural commodities that have been significantly impacted by trade actions of foreign governments resulting in the loss of exports. As part of TMP, the Market Facilitation Program (MFP) regulation specifies the eligibility requirements, payment calculations, and application procedures. The details for specific commodities and the relevant application start dates will be announced in applicable notices of funds availability (NOFAs). As part of TMP, the Expanded Domestic Commodity Donation Program (EDCDP) regulation specifies disposition of surplus commodities through outlets not currently used in existing Food and Nutrition Service (FNS) programs, the application process, eligibility, and use of grants or cooperative agreements. The details for specific commodities and conditions will be announced in applicable notices of commodity availability (NOCAs). This rule adds new subparts to the TMP regulation to address the 2019 agricultural commodities. The rule is effective 07/29/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-15700.pdf. Federal Register, Vol. 84, No. 145, 07/29/2019, 36456-36464.

CFTC Requests Comment on Information Collection. 

The Commodity Futures Trading Commission (CFTC) announced it seeks comment on the information collection titled Protection of Consumer Information under the Fair Credit Reporting Act. CFTC also gave notice that it sent the collection to OMB for review. Comments are due 09/24/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-26/pdf/2019-15933.pdf. Federal Register, Vol. 84, No. 144, 07/26/2019, 36086-36088.

SEC Issues List of Rules To Be Reviewed Pursuant to the Regulatory Flexibility Act.

The Securities and Exchange Commission (SEC) is publishing a list of rules to be reviewed pursuant to Section 610 of the Regulatory Flexibility Act. The list is published to provide the public with notice that these rules are scheduled for review by the agency and to invite public comment on whether the rules should be continued without change, or should be amended or rescinded to minimize any significant economic impact of the rules upon a substantial number of small entities. Comments are due 08/12/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-11/pdf/2019-14616.pdf. Federal Register, Vol. 84, No. 133, 07/11/2019, 33024-33027.

SEC Issues Correction to Broker-Dealer Standard of Conduct.

SEC issued technical corrections to a rule published in the Federal Register on 07/12/2019 regarding the Broker-Dealer Standard of Conduct. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-09/pdf/C1-2019-12164.pdf. Federal Register, Vol. 84, No. 154, 08/09/2019, 39178.

FTC Requests Comment on COPPA.

The Federal Trade Commission (FTC) requests public comment on its implementation of the Children’s Online Privacy Protection Act (COPPA), through the Children’s Online Privacy Protection Rule (COPPA Rule). Comments are due 10/23/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-25/pdf/2019-15754.pdf. Federal Register, Vol. 84, No. 143, 07/25/2019, 35842-35847.

NCUA Finalizes Fidelity Bonds Rule.

The National Credit Union Administration (NCUA) finalized a rule that amends its regulations regarding fidelity bonds for corporate credit unions and natural person credit unions. The rule strengthens a board of directors’ oversight of a federally insured credit union’s (FICU) fidelity bond coverage; ensures an adequate period to discover and file fidelity bond claims following a FICU’s liquidation; codifies a 2017 NCUA Office of General Counsel legal opinion that permits a natural person credit union’s fidelity bond to include coverage for certain credit union service organizations (CUSOs); and addresses NCUA approval of bond forms. The final rule is effective 10/22/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-24/pdf/2019-15709.pdf. Federal Register, Vol. 84, No. 142, 07/24/2019, 35517-35525.

NCUA Finalizes Real Estate Appraisals Amendments.

NCUA is amending the agency’s rule requiring real estate appraisals for certain transactions. The final rule accomplishes four objectives: Increasing the threshold below which appraisals are not required for commercial real estate transactions from $250,000 to $1,000,000; restructuring the rule to enhance clarity; exempting from the rule certain federally related transactions involving real estate in a rural area; and making conforming amendments to the definitions section. The final rule is effective 10/22/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-24/pdf/2019-15708.pdf. Federal Register, Vol. 84, No. 142, 07/24/2019, 35525-35538.

NCUA Proposes Exceptions to Employment Restrictions.

NCUA issued a proposal to update and revise its Interpretive Ruling and Policy Statement (IRPS) regarding statutory prohibitions imposed by Section 205(d) of the Federal Credit Union Act (FCU Act). Section 205(d) prohibits, except with the prior written consent of NCUA, any person who has been convicted of any criminal offense involving dishonesty or breach of trust, or who has entered into a pretrial diversion or similar program in connection with a prosecution for such offense, from participating in the affairs of an insured credit union. Based on its experience with IRPS 08–1 since its issuance in 2008, NCUA is proposing to rescind current IRPS 08–1 and to issue a revised and updated IRPS to reduce regulatory burden. NCUA is proposing to amend and expand the current de minimis exception to reduce the scope and number of offenses that would require an application to NCUA. Specifically, the proposed IRPS would not require an application for insufficient funds checks of aggregate moderate value, small dollar simple theft, false identification, simple drug possession, and isolated minor offenses committed by covered persons as young adults. Comments are due 09/27/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-15706.pdf. Federal Register, Vol. 84, No. 145, 07/29/2019, 36488-36501.

NCUA Requests Comment on Information Collections.

  • NCUA announced it seeks comment on the information collection titled Production of Non-public Records and Testimony of Employees in Legal Proceedings (Touhy Request). NCUA also gave notice that it sent the collection to OMB for review. Comments are due 09/27/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-15967.pdf. Federal Register, Vol. 84, No. 145, 07/29/2019, 36625.
  • NCUA announced it seeks comment on the information collection titled Supervisory Committee Audits and Verifications. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 09/27/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-29/pdf/2019-15965.pdf. Federal Register, Vol. 84, No. 145, 07/29/2019, 36624-36625.
  • NCUA announced it seeks comment on the information collection titled NCUA Call Report and Profile. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 09/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-05/pdf/2019-16633.pdf. Federal Register, Vol. 84, No. 150, 08/05/2019, 38062-38063.
  • NCUA announced it seeks comment on the information collection titled NCUA Call Report. NCUA also gave notice that it sent the collection to OMB for review. Comments are due 10/08/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-09/pdf/2019-17028.pdf. Federal Register, Vol. 84, No. 154, 08/09/2019, 39377-39378.

DOL Finalizes Association Retirement Plans and Other Multiple-Employer Plans. 

The Department of Labor (DOL) issued a final regulation under title I of the Employee Retirement Income Security Act (ERISA) that expands access to affordable quality retirement saving options by clarifying the circumstances under which an employer group or association or a professional employer organization (PEO) may sponsor a multiple employer workplace retirement plan under title I of ERISA (as opposed to providing an arrangement that constitutes multiple separate retirement plans). The final regulation does this by clarifying that employer groups or associations and PEOs can, when satisfying certain criteria, constitute “employers” within the meaning of ERISA for purposes of establishing or maintaining an individual account “employee pension benefit plan” within the meaning of ERISA. As an “employer,” a group or association, as well as a PEO, can sponsor a defined contribution retirement plan for its members (collectively referred to as “multiple employer plans” or “MEPs” unless otherwise specified). Thus, different businesses may join a MEP, either through a group or association or through a PEO. The final regulation also permits certain working owners without employees to participate in a MEP sponsored by an employer group or association. The final rule primarily affects groups or associations of employers, PEOs, plan participants, and plan beneficiaries. It does not affect whether groups, associations, or PEOs assume joint-employment relationships with member-employers or client employers. But it may affect banks, insurance companies, securities broker-dealers, record keepers, and other commercial enterprises that provide retirement-plan products and services to ERISA plans and plan sponsors. The final rule is effective 09/30/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-07-31/pdf/2019-16074.pdf. Federal Register, Vol. 84, No. 147, 07/31/2019, 37508-37544.

DOL Requests Comment on Information Collection. 

DOL announced it seeks comment on the information collection titled The Family and Medical Leave Act of 1993, As Amended. DOL also gave notice that it sent the collection to OMB for review. Comments are due 10/04/2019. The notice may be viewed at: https://www.govinfo.gov/content/pkg/FR-2019-08-05/pdf/2019-16636.pdf. Federal Register, Vol. 84, No. 150, 08/05/2019, 38061-38062. 

By, Ally Bates

Rose recently visited Ladysmith to congratulate Scott Von Haden on his retirement as president/CEO of Ladysmith Federal Savings and Loan Association and welcome Bill Dyson as the bank's new president/CEO.

By, Ally Bates

Bass, Beavers, and Beyond! Rose spent several days visiting with WBA members in northwest Wisconsin, check out some of the highlights of her trip!

By, Ally Bates