Pub. 5 2016 Issue 8

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 10 KBA LENDING CONFERENCE MOVES TO MANHATTAN Dr. Bruce Morgan, Professional Bank Consultants, leads a panel discussion to assist bankers with their next examination. Panelists included James LaPierre from the FDIC, Jim Hunter from the Federal Reserve Bank in Kansas City, and Rod Werhan from the OCC. T HE HILTON GARDEN Inn in Manhattan, KS was the setting for the 2016 KBA Lending Conference on October 13 and 14. KBA Board Chairman Jim Hoskins welcomed attendees and recognized the Lending Committee who planned this conference before introducing the keynote speaker, Lindsey Piegza, Chief Economist from Stifel, Nicolaus & Company. Ms. Piegza captured the attention of the audience with her presentation “The Economy Analysis,” offering up-to-the- minute insights at the pace of our economic recovery and what it means going forward for overall growth, interest rates and monetary policy. She noted that the “Fed’s ability to raise rates is data dependent,” meaning the Fed wants sustainable, moderate footing. Inflation has improved from 2015, yet still fails to meet the 2% target growth. She touched on topics such as the impact Brexit may have on our economy, as well as the impact of the impending elections in the U.S. Additionally, she noted that the debt appetite is diminished, lower gas prices have given a muted boost to the average American household, yet retail sales are still weak. Median household income is up approximately 5%, yet rising household income has failed to recapture the previous peak prior to the recession. Business investment remains sluggish as well. In conclusion, Ms. Piegza left the group with some silver linings: home sales are positive, inventory growth declines, the pressure on the U.S. dollar is easing, crude oil prices are improving modestly, and presented, consumer confidence is on the rise, as is savings by consumers. Terri Thomas, SVP of the KBA Legal Department presented “Hot Topics in Lending Compliance.” To begin her presentation, she gave an overview of the CFPB ruling that had just come down the day before, and was no doubt on the mind of each lender present. She followed that with information on the latest amendments to lending laws and regulations, along with compliance topics that are drawing the attention of bank regulators, including the temporary extension of protections under the Servicemembers Civil Relief Act (SCRA), exam procedures for the Military Lending Act, HMDA amendments, the CRA Interagency FAQ’s as of July 2016, FASB standard on Financial Instruments, Current Expected Credit Loss (CECL), as well as proposed amendments by the CFPB on payday and small dollar loan rules, limitations on mandatory arbitration clauses, and amendments to TRID. Terri completed her talk with an update on Fair Lending. During the luncheon, KBA President Chuck Stones addressed the group with some words of encouragement as to the state of community banking, and what we can do to continue positive growth for the longevity of our organizations. Following lunch, participants were able to choose from multiple concurrent sessions. Trent Fleming from Trent Fleming Consulting spoke on the timely topic of “Introduction to Technology for Lenders.” He examined ways lenders can leverage technology to improve service, reduce costs, and compete effectively at both the consumer and commercial levels. Dylan Serrault, KBA staff attorney, gave lenders insight with his presentation “HMDA Revisions and Updates.” Dylan covered everything the lenders need to know (and, self- admittedly, probably some things they didn’t want to know) about the new HMDA requirements. His topics ranged from types of institutions and transactions subject to the new rule with a deep dive into the collection, recording, and reporting of new data points and modification of data points under the old rule. Christopher Conn, special agent with Small Business Adminstration, spoke on the topic of “SBA Origination Fraud Looming,” noting that the SBA has experienced a significant uptick in the number of lender service providers utilized by banks during the SBA commercial lending process. Subsequently, the amount of origination fraud has become alarming. He shared examples of fraud that is currently occurring, and shared tips on how to identify and report these schemes. “Community Bank Lending: Learning from the Past to Find Success in the Future” was a panel discussion led by Earl McVicker, CEO of Central Bank and Trust Company in Hutchinson. Other panelists included John Price, EVP and chief lending officer for Valley View State Bank in Overland