Week of Aug. 14

August 14, 2017

Greetings from Guy

By Guy Sims
OBA Chairman

Editor’s Note: Guy is out of town this week and will be back with his chairman update next week. In the meantime, however, enjoy a couple of photos he shared from his motorcycle trip to Sturgis during the past week!

Operation Choke Point: to be or not to be?

As reported to us by the ABA, there is a small group of Republican lawmakers who wrote to the heads of the Department of Justice, Federal Reserve and OCC about “Operation Choke Point.”

Included among the Congressman who joined in the letter were Reps. Bob Goodlatte, (R-Va.) and chairman of the House Judiciary Committee; Jeb Hensarling (R-Texas), chairman of the House Financial Services Committee; Blaine Luetkemeyer (R-Mo.); and Darrell Isa (R-Calif.).

The purpose behind the letter is to have the Department of Justice clarify its stand on the policy that identifies “undesirable” businesses (like payday lenders) and – working through federal banking regulators – DOJ tried to bring pressure on banks of all sizes to get rid of and end their services to the “undesirable” customers. We know of several OBA-member banks that were caught up in this “dragnet” operation trying to deal with a modern-day Detective Sergeant Joe Friday to avoid criminal charges from being brought.

The congressmen were directly asked to take action to formally and explicitly rescind existing Choke Point guidance. As you might expect, bankers are a bit nervous reengaging in those business services with those customers that had previously been targeted without some formal statement that “Choke Point” was in the history books.

Click here to read the letter.

Small business data collection: Don’t forget to comment

One of the more significant proposals from the CFPB is the current Request for Information that deals with implementing the requirements of Section 1071 of Dodd-Frank. That section requires banks to begin collecting data on small business loans like you do on consumer and other kinds of loans – especially as requirements relates to HMDA-reporting requirements.

We are working on a comment letter, but encourage your bank to submit a comment as well, even if it’s only focused on one of the proposed requirements. In particular, the Bureau wants information about current practices as they relate to small businesses that are minority- or women-owned.

“I just don’t think the CFPB understands how small business lending works,” OBA President and CEO Roger Beverage said. “I encourage bankers to explain the differences in consumer and residential real estate lending and why these kinds of loans differ from small business commercial lending. This is really an important issue that seems to be flying under the radar right now.”

In case you missed it …

Last week, there was an article in the American Banker talking about the increase in de novo applications. This chart was a part of that article that focused on the criticisms being made by Keith Noreika, acting comptroller of the currency, and we thought you would find it interesting.

You can read the article by clicking here.

Sen. Warren’s ‘brand’ is expanding

Last week, there was another article, this time in Politico, that we believe is important to the future of banking legislation.

The article talks about the growing popularity of Sen. Elizabeth Warren (D-Mass.), especially among liberal and far-left members of the Democratic Party. These “progressives” buy her action figures, coloring books and other items at her campaign’s own “online store.”

No other senator has such a “business” that’s been built around her person as we approach the 2020 presidential election. One commentator even referred to her as “the Apple of politics.”

“I want to believe that (Sen. Warren) will be there when we need her support and her vote on regulatory relief for community banks,” OBA President and CEO Roger Beverage said. “Most bankers in Oklahoma know I have believed she would be the champion for our member banks for some time. I have yet to see what that would look like, from her or from any other Democrat on the Committee. But I have not given up hope.

“The OBA’s top priority is to begin the process of ‘bifurcating’ the regulatory structure for community banks. Incidentally, and for what it’s worth, ‘bifurcation’ is Merriam-Webster’s ‘Word of the Day’ today.

“It’s a fairly simple concept and I know she thinks it’s a good idea – at least that’s what she told me a few years ago. But things like tailored regulation, portfolio lending and exemption from Basel III requirements for small banks keep ending up in the crosshairs of her opposition to ‘big banks.’ So far, we’ve been striking out.

“I’m hoping this year will be different. I’m optimistic that the chairman of the Senate Banking Committee (Sen. Mike Crapo, [R-Idaho]) will approach her with something that’s reasonable and simple, like the TAILOR Act (S. 366). My colleague in Georgia reported she was in Atlanta over the weekend and her ‘brands’ were all over town. I really hope she will be there to help when we need it, but I know she’s being touted as a possible presidential candidate, and that’s likely much more important than community banking in her eyes.”

Click here to read the article.

OBA education corner …

Same as kids currently preparing to go back to school for the year, bankers should be preparing to go back to school themselves with education opportunities from the OBA! Take a peek at the upcoming events:

New Business Accounts: The Interview, CIP, New CDD, Aug. 15, webinar — This program will focus on building the process from different types of entities to different types of risk.
Same-Day ACH: Round Two, Aug. 16, webinar — We’ll review the rule, volume and who’s currently using Same-Day ACH.
Applicants and Applications, Aug. 17, webinar — Join us for this two-hour applicants and applications compliance webinar. This webinar will cover the latest requirements and guidance.
Flood Insurance: Compliance Issues and Enforcement, Aug. 22, webinar — We’ll concentrate on some of the more vexing issues in flood compliance by explaining best practices in keeping your portfolio covered.
Opening Trust Accounts: Documenting Authority and Liability, Aug. 23, webinar — This webinar will cover standard trust-opening procedures and many questions that arise as trusts and account holder situations change.
Call Report for Banks: Recent Changes, Highlights, Aug. 23, webinar — The webinar will cover the latest revisions and recently approved changes to the call report, as well as updates due to revisions in accounting standards.
Dealing with Casual Days, Dress Codes and Work Appearance, Aug. 25, webinar — This program will cover the practical and legal issues and the current trends in workplace appearance and what you should and shouldn’t do about it.
Cash Management, Aug. 29, webinar — During this two hour webinar, you will gain a more in-depth knowledge of cash management (a.k.a. Treasury Management) products and services.
BSA/AML, Aug. 29, Tulsa — This program is designed to assist experienced personnel in staying ahead of BSA/AML compliance steamroller.
BSA/AML, Aug. 30, Oklahoma City — This program is designed to assist experienced personnel in staying ahead of BSA/AML compliance steamroller.
60 Critical Steps for Handling Delinquent and Abandoned Safe Deposit Boxes, Aug. 30, webinar — This webinar answers questions regarding the collection of past due box rent, drilling delinquent boxes, securing drilled and inventoried box contents, reporting abandoned property to state authorities and many other legal and compliance issues have caused concern and confusion for the safe deposit industry.
Loan Doc for Real Estate Secured Commercial Lending, Sept. 7 – Tulsa; Sept. 8 – Oklahoma City — Attend this proactive seminar and receive a thorough overview of commercial lending “loan documentation” with an emphasis on “commercial real estate” transactions.
Cybersecurity Seminar, Sept. 12, Oklahoma City — This interactive, in-person seminar is designed to provide education on evolving cybersecurity threats and what your institution should do to
prevent, detect and respond to these threats.
Advanced New Accounts Seminar, Sept. 26 – Tulsa; Sept. 27 – Oklahoma City — The opening of new
accounts is about to become more complex than ever. Make sure you are prepared.
2017 OBA/BKD Symposium, Sept. 28, Oklahoma City — This conference is a must attend for all Directors, CEOs, CFOs and others in the banking industry who are impacted by economic, accounting, credit, legal, taxation, regulatory or other issues impacting the banking industry in these challenging times.
2017 OBA Consumer Lending School, Oct. 2-6, Oklahoma City — The school is designed for consumer lenders, credit administration personnel, loan secretaries and others who are involved in consumer lending.

Also, take note the OBA 2017-18 Emerging Leaders Academy is currently accepting applications. We’re looking for the best and brightest bankers who seek to sharpen their leadership skills. The Academy will help you reach new heights with powerful speakers offering information leaders need for effectively maneuvering in today’s business climate. Each session helps participants become true leaders by understanding those around you through non-traditional methods.

There are six sessions to the Academy: Sept. 29, Oct. 13, Nov. 9, Jan. 26, Feb. 20, March 16.

Click here for more information or to apply! For more information, please contact Megan McGuire at (405) 424-5252 or megan@oba.com.

Finally, the dates and locations for the 2018 Senior Management Conference and the 2018 OBA Convention have been set. The 2018 SMC will take place on April 8-10 at the Four Season Resort in Las Vegas. The convention will be held on May 21-23 at the Hard Rock in Tulsa. More details will be coming soon!

With these dates in mind, if you or your company would like to propose a speaker for any of these events, you can download the OBA’s Speaker Proposal Form by clicking here.