Wednesday, September 28, 2022

Week of May 30

In This Issue…

CFPB: Algorithms used in credit decisions must be explainable

In a new circular issued late last week, the CFPB said under the Equal Credit Opportunity Act and Regulation B, creditors are not permitted to use complex algorithms in credit decision-making if doing so means they are unable to provide “the specific and accurate reasons for adverse actions.”

Under ECOA and Reg B, creditors are required to provide such reasons to any applicant against whom adverse action is taken.

You can read the circular on the CFPB website by clicking here.

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2022 OBA Annual Washington Visit scheduled

Just a quick “save-the-date message” for our bankers: The OBA’s Annual Washington Visit has been scheduled for Sept. 26-28!

Registration information will be available in June. If you have any questions, contact Megan McGuire at the OBA.

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Fed board issues ‘Economic Well-Being of U.S. Households’ in 2021 report

The Federal Reserve Board last week issued its “Economic Well-Being of U.S. Households in 2021report, which examines the financial lives of U.S. adults and their families.

The report draws from the Board’s ninth annual Survey of Household Economics and Decisionmaking, or SHED, which was conducted in October and November of last year before the increase in COVID-19 cases from the Omicron variant and other changes to the economic landscape in recent months. The report, fact sheet, downloadable data, data visualizations, and a video summarizing the survey’s findings may be found here.

The report indicates self-reported financial well-being reached its highest level since the SHED began in 2013. In the fourth quarter of 2021, 78 percent of adults reported either doing OK or living comfortably financially. Financial well-being also increased among all the racial and ethnic groups measured in the survey, with a particularly large increase among Hispanic adults. Parents were one group who reported large gains in financial well-being with three-fourths saying they were doing at least OK financially, up 8 percentage points from 2020.

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OBA education corner …

Wow, our convention is over, Memorial Day weekend is behind us, it’s starting to feel like summer around here! During the summer, we slow our in-person events down significantly, but it doesn’t mean we don’t have anything going on! Check out the events below!

  • How to Craft an Effective Commercial Loan Write-Up, June 6, webinar — This webinar will cover the basics of how to craft an effective commercial loan write-up.
  • SAR Line-by-Line, June 7, webinar — During the webinar you will review line-by-line the text fields and requirements to complete the SAR.
  • Current Matters and Common Questions Impacting the Call Report, June 8, webinar — The Call Report for 2022 is impacted by new and recent reporting requirements related to the adoption of the lease accounting standard, reporting brokered deposits, sweep accounts and international remittance transfers.
  • BSA: CIP and CDD, June 8, webinar — This program will look line-by-line at the regulation and point out avenues of change to explore in 2022.
  • Effective Documentation for Employment Issues, June 10, webinar — This program covers the fundamentals of documentation and positive principles which can lead to solving problems before they result in discipline or discharge. It provides the foundation for effectively approaching issues and then having a strong and valid defense for the actions you take.
  • Robbery Basics & Beyond, June 13, webinar — In this session, we will reveal the facts about robbery, discuss current trends and provide step by step guidelines for effective prevention, safe response and dealing with aftereffects.
  • Bi-Monthly Compliance Briefing – June 2022, June 14, webinar — A bi-monthly update to help you keep up with changes and deadlines in the compliance area in a quick and easy format.
  • Dealing with Subpoenas, June 15, webinar — This webinar will provide attendees with the best practices and red flags for dealing with the various legal documents served upon financial institutions.
  • Right of Setoff, June 22, webinar — The Right of Setoff is a complicated, but very effective tool for collecting debts owed to a bank. Learn the best practices and dangers that can arise when using the power.
  • Treasury Management: A Powerful Tool to Increase Deposits and Fee Income, June 23, webinar — You will walk away from this course with a deeper knowledge of treasury management, learn to conduct risk assessments on new products and learn strategies to increase core deposits.

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