Thursday, September 23, 2021

Week of June 3

In This Issue…

Congress passes two-week extension for Flood Insurance Program, avoiding lapse

Before the recent holiday recess, Congress left town without taking any action to extend the deadline for reauthorizing the National Flood Insurance Program, which would have expired Friday, May 31. That same day, the House passed bill S. 1693, earlier approved by the Senate, to extend the National Flood Insurance Program through June 14 and, thus, avoiding a lapse. President Trump is expected to sign the bill.

We understand the House is expected to vote as early as this week on a disaster relief package that contains a six-month extension for the NFIP.

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CBO positively scores H.R. 1595

Last week the Congressional Budget Office released its cost estimate for H.R. 1595, the SAFE Banking Act, to enable banks and credit unions to serve legitimate cannabis businesses in Oklahoma and 32 other states that have legalized the use of marijuana for either medical or recreational use. According to the CBO, this bill, which is strongly supported by the OBA, would save the federal government $4 million over a 10-year period.

“Sixty-eight percent of the nation’s population today lives those (33) states,” said OBA President and CEO Roger Beverage. “No matter how you cut it, that’s a significant number of people and it should result in a House majority approving this proposal.”

The OBA continues to ask the Oklahoma Delegation in Congress to address the barriers to bringing the marijuana business into the light and out of the shadows.

“By their very nature, any business that operates on a ‘cash-only’ basis creates a public safety hazard and becomes a target for the bad guys,” Beverage said. “No one I know is saying this bill legalizes the use of marijuana. It doesn’t, and the Association has not taken a position on the subject. But this bill does decriminalize the process for bringing a legal product in Oklahoma into the marketplace where it can be better tracked for tax and other purposes.

“It’s not just direct retailers that will be protected by this bill. It will protect the overall process for commercializing sales of the product at all states – growth, transportation, possession. Most importantly, it eliminates the criminal risk that banks face for choosing to do business with anyone acting within the delivery system for marijuana.”

The Act is currently poised to be approved by the full House. An identical companion bill is awaiting action in the Senate.

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Bill introduced to delay CECL

Last week, Sen. Thom Tillis (R-N.C.) introduced a bill that would delay the implementation of the Financial Accounting Standards Board’s current expected credit loss standard. Among other things, this new standard would require the Security Exchange Commission and federal banking agencies to conduct a “quantitative impact” study to determine what effect, if any, the new accounting standard will have on the economy.

Earlier this month, members of the House and Senate sent letters to the federal banking regulatory agencies voicing industry concerns about the lack of a thorough study to try and get a handle on the new standard’s impact on the economy. They were particularly concerned about the procyclical effects the standard would have on smaller banks. The OBA joined with the other members of the Alliance and the ABA asking for a delay in implementing the new standard.

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2019 Convention Golf Tournament rescheduled

Did you miss the 2019 Convention Golf Tournament? Well here’s your chance to show off your golfing skills!

We have rescheduled the tournament for July 29 at the River Oaks Golf Club. The tournament fee is $140 and the registration deadline is July 24. The tournament will begin with registration and a continental breakfast. Immediately following the tournament, we will hold an awards ceremony and provide lunch for the players. Sign up now to reserve your spot. We hope to see you on the course!

Click here to register for the rescheduled 2019 Convention Golf Tournament.

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OBA education corner …

It’s raining and raining and raining, and our sympathies are particularly with our friends in northeastern Oklahoma. If you are in a safe spot and waiting for the rains to end, taking part in OBA education events might just be best use of your time!

Take note of the following events:

  • Notary Public, June 11, webinar —  With this presentation notaries and others will learn best practices for dealing with issues unique to the financial industry.
  • Quarterly Compliance Briefing, June 18, webinar — The presentation will include a quarterly update that will address new items to be aware of, deadlines and what’s on the horizon.
  • HDMA Advanced Lessons, June 20, webinar — A two-hour webinar devoted to the more complicated areas associated with HMDA data collection and reporting. This is not an HMDA 101 class! It will provide understanding into the data fields that are giving banks the most headaches and help navigate a path to a higher level of HMDA understanding.
  • Three Key Risk Assessments in ERM, June 20, webinar — This webinar will first take you through a basic review of what is ERM and the basic steps to develop strong Risk Assessments to address key areas of your institution. Then will specifically focus on three key Risk Assessments you must have as critical components of your ERM Program.
  • Residential Construction Lending, June 21, webinar — This presentation will examine the characteristics and risks inherent with these borrowers; how to underwrite them and the real estate project under construction.
  • Signature Card Danger Zones, June 25, webinar — This webinar is a cost-effective way to train those who open new accounts on the potential liability of signature cards that are improperly set up.

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