Oklahoma Bankers Association We make bankers better!
In This Issue…
- From Adrian’s desk …
- Democratic state AGs file lawsuit to stop CFPB defunding
- ABA offers suggestions to agencies’ proposed safety, soundness rules
- OBA education corner …
From Adrian’s desk …
By Adrian Beverage
OBA President & CEO
Just some random tidbits that might be of interest to our bankers this week!
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I’m on vacation this week, so we’ll keep this short today. One thing I wanted to mention, though, is our fraud department tells me the credit washing trend is on the rise. Don’t forget to read Sharon’s article in the upcoming January 2026 edition of the Oklahoma Banker newspaper to learn what it is and how it could affect your bank’s credit risk.
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Finally: Go Big Red as we head to the Las Vegas Bowl this week to take on Utah!
Democratic state AGs file lawsuit to stop CFPB defunding
A coalition of 22 Democratic state attorneys general last week filed a lawsuit against the Trump administration to stop what they said was the “complete defunding” of the Consumer Financial Protection Bureau.
CFPB Acting Director Russ Vought has sought to terminate most of the bureau’s staff and said he does not intend to ask the Federal Reserve for the bureau’s next round of appropriations, with the agency expected to run out of available funding sometime next year. In a joint statement, the AGs said the bureau has a legal requirement to collect and process consumer complaints and share that data with states, and that Vought’s actions violate the law and the Constitution.
The plaintiffs in the lawsuit are the state attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New York, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Wisconsin and the District of Columbia.
ABA offers suggestions to agencies’ proposed safety, soundness rules
The American Bankers Association ABA responded on Monday to a notice of proposed rulemaking issued by the FDIC and the Office of the Comptroller of the Currency in October that would define the term “unsafe or unsound practice” for purposes of section 8 of the Federal Deposit Insurance Act and “revise the supervisory framework for the issuance of matters requiring attention and other supervisory communications.”
While its letter recommends some changes to the final rule, the ABA supports the joint agency proposal overall.
Regarding unsafe or unsound practices, ABA urged the rule clarifies that isolated or technical incidents do not qualify as “practices”; requires agency examiners “to provide demonstrable and quantifiable evidence to support the conclusion that material financial harm is ‘likely’”; and ties the materiality standard explicitly to case law. ABA also recommended revising or removing the agencies’ comments on tailoring as it relates to community banks, noting that supervisory and enforcement actions should be focused on a risk-based approach that “takes the risk profile of each institution into account rather than setting expected thresholds for materiality based on the size of an institution.”
ABA also supports the proposed standard for issuing MRAs and recommended requiring that violations of law must be “substantive” rather than technical, isolated, or immaterial; and incorporating the association’s comments regarding “material harm” throughout the proposal.
Additionally, ABA recommended that the final rule should codify the “strict parameters applicable to the agencies’ informal supervisory communications,” in addition to clarification about “whether composite rating downgrades within other rating systems would only occur in cases where the institution receives an MRA that meets the standard outlined in the proposal or an enforcement action pursuant to the agencies’ enforcement authority.” ABA also encouraged the FDIC and OCC to consider other recommendations related to the proposal, including self-identified acts or practices, MRA closure, coverage of legacy MRAs and examiner training.
OBA education corner …
So, on Saturday, everyone was sweating in 80-plus-degree weather. Only 24 hours later, a chilly cold front dipped temperatures into the 40s. Go home, Oklahoma weather, you’re drunk! While trying to figure out whether the weather allows for shorts or parkas, make sure you take a little time to keep up with what’s happening on the continuing education front, including the following:
- You’ve Been Served: Best Practices in Processing Subpoenas, Garnishments and Tax Levies, Jan. 6, webinar — This webinar will provide attendees with best practices and red flags for dealing with the various legal documents served upon financial institutions.
- Basic Real Estate Loan Documentation, Jan. 7, webinar — Real estate loan documentation is no easy task. Join us for an overview of basic real estate concepts and terminology, loan documentation and lending best practices.
- Processing Garnishments on Accounts Containing Federal Benefit Payments, Jan. 7, webinar — This webinar provides participants with the federal rules that are applicable when processing garnishments on deposit accounts receiving federal benefit payments.
- Managing OFAC: New Record Retention Rules and Hot Topics, Jan. 8, webinar — The new record retention rules introduced in March 2025 bring focus to our OFAC programs. These new record-keeping rules laser focus regulators on the documents and records we should be keeping.
- Dealing with Escrows: Regulatory Requirements Under Various Rules, Jan. 9, webinar — Detailed discussion around the laws and regulations that apply to establishing and maintaining escrow accounts for consumer mortgage loans.
- Using AI as Your Writing Assistant, Jan. 12, webinar — This webinar looks at employing artificial intelligence ethically and efficiently in every step of the writing process: planning, drafting, revising, editing and proofreading.
- ACH Rules Update: Are You Prepared for the 2026 Changes, Jan. 13, webinar — Nacha’s latest rules bring new fraud monitoring requirements, return code updates and funds availability exceptions. Stay ahead of the changes that impact your institution.
- Handling Accounts at Death, Jan. 15, webinar — When your account holder dies, many issues and questions arise. Learn about checks, IRAs, deposit ownership, trusts, UTMA, affidavits of heirship and other complex issues that can occur when an account holder is deceased.
- 2026 OBA Intermediate School, Session I-Feb. 26; Session II-June 1-5, Oklahoma City — This school is designed to prepare students to serve effectively and profitably the needs and desires of their banks and the banking public. A major objective of the program is to instill an appreciation for and an understanding of the operations and interrelationships of departments within a bank.