Thursday, September 24, 2020

Week of Sept. 14

In This Issue…

From the chairman …

By Rick Walker
OBA chairman

Let’s talk FOOTBALL,  POLITICS and take ACTION!

Football:

Since  college football is back, and I know the word “football” will get you to read this article …

… You can have the greatest talent, but if each player doesn’t think they are the one who has to make every play when they are on the field, you won’t have a winning team. If they don’t believe they have to execute and make that tackle or put forth the extra effort because they think someone else is going to do it, it will be the design for disaster.  I’m asking you to be the banker who steps up and makes the play.

Talk:

With a Democratic-controlled U.S. House of Representatives, a narrowly controlled Republican Senate and a presidential election that could end up very different than the way most Oklahomans vote, the 2020 Senate elections will be paramount to our industry.  Oklahoma’s congressional members are very supportive of our industry, but unfortunately not all states (which still impacts us) have that luxury.

Action:

With only seven weeks remaining until the election, it imperative you take action to help decide the fate of our industry.  Here’s how:

Friends of Traditional Banking:

  • Non-partisan grassroots effort, organized by bankers.
  • Chooses two congressional races each cycle, and encourages our membership to donate directly to those campaigns.
  • Are the inverse of a PAC – instead of spreading a little bit of money to a lot of campaigns, it focuses a lot of money on a couple of key campaigns.

Key Races:

  • Sen. Joni Ernst, Republican, Iowa
  • Sen. Cory Gardner, Republican, Colorado
  • Sen. Martha McSally, Republican, Arizona
  • Sen. Thom Tillis, Republican, North Carolina

Go to Friends of Traditional Banking website for detailed, great information – but, more importantly, take action and help fund these campaigns.

Let’s help banking, and let’s chalk up a win for us and our fellow bankers’ future!

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Hofmeister joins OBA on Tuesday @ 10 call

Oklahoma Superintendent of Public Instruction Joy Hofmeister joined the OBA for the initial Tuesday @ 10 video conference call today. Hofmeister shared a presentation on Oklahoma schools and answered questions from the group.

You can download and watch the entirety of the call by clicking here. (Note: The first couple of minutes are audio only until the superintendent’s internet connection straightened up.)

The OBA Tuesdays @ 10 calls are meant to bring the newsmakers from across the state and nation directly to Oklahoma bankers’ computer screens and telephone lines. Not all will have a direct correlation with banking, such as Hofmeister today, but with bankers deeply woven in the fabric of their communities, all should be interesting guests.

Look for the next Tuesday @ 10 call to take place two weeks from today, Sept. 29, with the guest to be determined.

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State Question 805: What about it?

For some time, a proposal to amend our state constitution has been floating around without a great deal of public discussion or debate. It deals with non-violent felony sentences and whether enhanced sentences can be administered for criminals with past felony convictions.

Recently, we’ve received some calls asking about the OBA’s position on this proposed amendment. At this point, there is no OBA position on SQ 805. But it may change next week.

The OBA Government Relations Council will meet the day before the OBA Board of Directors meets on Wednesday, Sept 23. The GRC will likely consider this state question and make a recommendation to the Board that the Association support, oppose or stay neutral on this issue.

SQ 805 states if a person is convicted of committing a non-violent felony (i.e., a crime  for which the penalty is either imprisonment in the state penitentiary or death), the court may not consider the criminal’s former non-violent felony convictions as a factor to increase or otherwise enhance the criminal’s ultimate sentence.

Under current law, the district attorney may recommend, and the court may impose, a longer sentence if the criminal has completed his or her term within 10 years of the current conviction. That’s the law today. SQ 805 will change that outcome (under the guise of criminal justice reform) by prohibiting extended sentences because of a prior felony conviction.

There are some exceptions, as you might imagine. This new rule would not apply to someone who was previously convicted of a violent felony. There’s a listing of what kinds of crimes are included, like murder, rape, burglary and robbery. But there are some important crimes against banks that are NOT included – like embezzlement, identity theft and grand larceny.

Perhaps as importantly, this proposal amends the state’s constitution! That fact alone causes many Oklahomans to pause just a bit before taking a position to support, oppose or remain neutral with respect to this proposal.

If you have thoughts or suggestions you would like our GRC and board to consider, please let us know at your earliest opportunity.

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Voting deadlines approaching

The upcoming elections to be held on Nov. 3 are of critical importance to all Americans. Regardless of whether you or anyone else you know is a Democrat, Republican or independent, that person must be registered to vote to cast a ballot.

HERE ARE THE DEADLINES BY WHICH YOU MUST BE REGISTERED:

  • Oct. 9 — Voter registration deadline for in-person voting.
  • Oct. 9 — Voter registration deadline for voting by mail.
  • Oct. 27 — Absentee ballot request deadline.
  • Oct. 29 — Early voting start date.
  • Oct. 31 — Early voting end date.
  • Nov. 3 — Absentee ballot return deadline.

If you have any specific questions or concerns, please let us know.

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Some misinformation floating around about proposed revisions to QM definition

Last week, ABA filed comments regarding the CFPB’s proposed revisions to the Qualified Mortgage definition in anticipation of the expiration of the GSE patch’s in January 2021.  There have been some recent misunderstandings or mischaracterizations of the ABA’s position on those revisions.

First, the ABA’s position outlined in a letter to the Bureau was created by a working group that included banks of all sizes. The ABA has been an advocate for the creation of the QM portfolio and small creditor QM exemptions, both of which must be preserved in any new rule proposed by the CFPB.

The proposed QM revisions supported by the ABA and the state associations not only retain these provisions, but continue to give loans that fall within them preferential treatment. Indeed, in the proposal, the CFPB clearly states “[T]he Bureau is not proposing to alter the higher threshold of 3.5 percentage points over APOR for small creditor portfolio QMs and balloon-payment QMs made by certain types of small creditors.”

The CFPB also explains that neither the removal of DTI requirements nor the addition of the pricing conditions will have an adverse impact on the ability of small entities to access small creditor QM categories. This explanation is unambiguous.

Secondly, the ABA and the state associations strongly support the Bureau’s proposal to replace the 43% debt-to-income ratio as a QM qualification standard with a price-based approach that is a more reliable indicator of risk. The proposal eliminates the otherwise rigid guidelines for purposes of underwriting contained in Appendix Q.

As noted in the ABA’s comment letter, signed by a broad coalition of industry, consumer and civil rights organizations, these changes will promote access to credit for all communities in a safe and sustainable way.

If you have questions or concerns, call us.

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OBA Oktoberfest Golf Tournament set for Oct. 5

Has 2020 been a little bit rough? Well here’s your chance to get out of the rough and onto the green!

Show off your golfing skills or simply join your banking peers as a social registrant at the 2020 OBA Oktoberfest Golf Tournament on Oct. 5 at River Oaks Golf Club in Edmond.

The tournament fee is $150 and the registration deadline is Sept. 30. 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! Not golfing? Join your banking peers as a social attendee for lunch (served outside), refreshments and fellowship on the patio. Social attendee registration fee is $50.

Click here for more details and to access the registration form. Questions? Contact Adrian Beverage or Megan McGuire. If you are interested in sponsorship opportunities, contact Thi Pham.

Tournament Schedule
9 a.m. – Registration & Continental Breakfast
10 a.m. – Shotgun Start
Immediately Following Golf – Lunch & Awards

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Answer leadership’s call: OBA Emerging Leaders Academy application deadline approaching

Take note the OBA 2020-21 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.

The OBA extends an invitation to any employee of a bank that is a member of the OBA to apply. A panel of bankers will review the applicants and choose those accepted into the Academy (maximum 30 bankers). Participants must attend all sessions to successfully graduate from the program.

There are six sessions to the Academy: Nov. 4, Dec. 10, Jan. 22, Feb. 23, March 26, April 30. Graduation will take place in May 2021 at the OBA Annual Convention.

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

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OBA education corner …

You can smell the fall in the air! We hope you’re enjoying this weather and we hope you are partaking in OBA education events, even during the pandemic. Some live events are starting to peek their heads out from underneath the blanket! Look for those coming up soon. You can also download a flyer highlighting upcoming webinars by clicking here, or just peruse below for those coming soon!

NOTE: Effective March 16, and until further notice, TTS (our webinar provider) has extended the OnDemand access period for all ‘Live Plus Five (Days)’ registrants to 60 days (versus five business days). Also, they are waiving the $75 per location fee for additional locations.

  • Employment Records and How to Keep Them, Sept. 24, webinar — This program provides information not just on what records you should keep and for how long, but on the several underlying and even more important issues of record creation, storage, and the DON’TS, which create the major liabilities.
  • Ten Practices to Create and Present Engaging Training, Sept. 28, webinar — Are you and your PowerPoint presentations in harmony or do you feel like you’re in a constant battle for attention with your slide deck?
  • Virtual Essential Teller Issues Seminar, Sept. 28, Sept. 29, virtual seminars — The program zeroes in on six modules that remind your tellers of the importance of what they do, how they do it, what they say, and how they deliver customer service.
  • The Right of Setoff, Sept. 29, webinar — Do you know when the right of setoff is allowed and when it isn’t? Do you know if your financial institution has a statutory or contractual right of setoff? Do you understand the financial risks of using your setoff rights incorrectly?
  • Opening Trust Accounts, Sept. 29, webinar — This webinar will cover standard trust-opening procedures and many “dos and don’ts” that arise as trusts and account holder situations change.
  • HR Basics for Supervisors, Sept. 30, webinar — This webinar will review HR legal basics for managers and give them practical tools to avoid HR legal issues.
  • BSA/AML & OFAC Compliance, Part 1, Oct. 1, webinar — In Part 1, we’ll discuss the Bank Secrecy Act provisions in general, including program requirements, risk assessments, CTRs, SARs, and the Beneficial Owner provisions, among other things.
  • Being Strategic with Base Compensation for Non-Executive Positions, Oct. 1, webinar — Our focus in this session is on helping HR professionals sort through some of the compensation-related challenges they may encounter.
  • Dealing with Subpoenas, Summonses, Garnishments, Tax Levies, Etc., Oct. 1, webinar — This webinar will provide attendees with the best practices and red flags for dealing with the various legal documents served upon financial institutions. This webinar does NOT discuss the procedures mandated by particular state laws.
  • 2020 Advanced New Accounts Seminar, Oct. 20, Tulsa — This program will get you up to speed on both practical and legal requirements for opening and documenting various types of non-basic new accounts.

Mark your calendars for these other future events. The 2021 OBA Convention will be held on May 24-26 at the new Omni Hotel in Oklahoma City, and the OBA Senior Management Forum, March 28-30 at the Bellagio in Las Vegas. Look for more information coming soon on both these programs.

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