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Home I GBA University I Member Services I Volunteers I Government Relations I Calendar of Events               April 13, 2012

 

Beware of Tax Lien Poachers

A new scheme being perpetrated by purchasers of tax liens has come into focus in recent months that bankers need to be aware of and take precaution against. A general outline of the issue flows this way: in the event that real property taxes are not paid, some county tax commissioners will sell that tax execution to a third party investor with the taxpayer or lender having the ability to protect their interests in the subject property by redeeming the property within one year. A cottage industry has sprung up in which a third party investor, in collusion with another junior lien-holder, redeems the property before the owner or lender realizes what has happened, thereby ending the redemption period and establishing the junior lien holder in a priority position over everyone else. We describe these junior lien-holders as poachers because they became eligible to bid as a lien-holder usually as the result of purchasing a small lien they found somewhere in Georgia like a lien filed for homeowners association dues. The junior lien holder then forecloses its super lien and acquires the title to the property. While potential solutions to this problem are on the drawing board, it’s important that all real property taxes be monitored and paid on time so this set of circumstances doesn’t undermine your bank’s position in the property. With questions, please call GBA’s Elizabeth Chandler at 404.420.2027.

 

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Summer Rules Blockbuster from CFPB Coming

Eight mortgage servicing rule proposals on the way from the CFPB this summer will focus on new statement requirements, advance notice of adjustable-rate increases, new limits on force-placed insurance and more. The CFPB outlined in a memo out this week its intent to issue rules this summer that promise “no runarounds, no surprises,” from mortgage servicing companies and practices. It intends to finalize the rules by January 2013. Other proposals would mandate immediate crediting of consumer accounts when payments are received, acknowledgement and correction of errors within 30 days, and access to specialized foreclosure prevention teams.

 

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TDR Accounting, Reporting Guidance Issued by OCC

Responding to questions from bankers and examiners, the OCC late last week issued a bulletin covering accounting and reporting requirements for troubled debt restructurings (TDRs). The guidance outlines factors banks should evaluate when deciding whether to designate a loan as a TDR and other accounting issues. For example, the first concept outlined states, “All substandard loans on accrual status that are renewed, extended, or otherwise modified are not automatically considered to be TDRs.” It also outlines considerations for the appropriateness of accrual status and impairment analyses. Here’s the full OCC bulletin for reference.

 

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Annual Meeting Spotlight

How to Increase Recovery on Non-performing Real Estate and OREO

When loans secured by land and commercial properties become a problem, the proper steps can reduce risks, improve efficiencies and increase recoveries. There are a number of best practices to use at this point deep into the distressed real estate cycle. Michael Bull, President and founder of Bull Realty, Atlanta, will share his thoughts on some of the best practices in dealing with OREOs and marketing them for the best results. Some of the topics he’ll cover include the top 10 methods to increase the number of buyers and achieve the highest sales prices when liquidating land and commercial OREO, how to deal with forbearance agreements and short sales to increase recoveries, how to leverage the borrower to improve the value of the note and collateral, strategies to increase returns when selling notes and much more. This is one of many outstanding breakout sessions at GBA’s 2012 Annual Meeting scheduled for June 10-13 at The Grove Park Inn in Asheville, NC. You can get detailed information about the meeting by clicking on the meeting website.

 

Annual Meeting Room Reservation Deadline is May 8

Just a reminder that the room block for GBA’s 2012 Annual Meeting will expire May 8. The rooms are filling up quickly, so if you have not already done so, please make your reservations by calling The Grove Park Inn directly at 404.563.7900 or 877.787.3447. Be sure to let them know you are with the Georgia Bankers Association group to get the discounted room rate of $239 per night. With questions about hotel rates and availability or the Annual Meeting in general, please contact GBA’s Susie McGehee at 404.420.2010.

 

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GA Bankers Get Fair Lending Briefing

GBA member Senior Lending Officers and Compliance Officers got a thorough update about preventing fair lending problems during GBA’s joint Senior Lending and Compliance Peer Group meeting Wednesday in Macon. Two d-words are the preliminary triggers for being concerned about possible fair lending violations - “discretion” and “disparity” - said FDIC Fair Lending Examination Specialist Gary Clayton. Basically, banks need to have solid underwriting policies, and if lenders or underwriters have discretion in deviating from the policies, often for good business reasons, an emphasis should be placed on making sure that discretion is provided in a way that does not discriminate. Documentation is vital in backing up decisions with examiners. And, banks should self-monitor loans to get an early read on possible disparity in rates, terms, decline or approval rates and other factors. Those were two of many important concepts covered. See the article below about our GBA Basic Loan Compliance Seminar coming up if you or your co-workers need more detailed training on fair lending and other loan compliance areas.

 

 

About GBA Peer Groups and Roundtables

GBA has several Peer Groups and Roundtables for members. The groups meet between two and four times each year, with meetings covering the latest hot topics for each professional area. And the peer networking is a tremendous value. Click here for access to details. With questions about GBA Peer Groups, contact Alison Moreau at 404.420.2034.

 

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Fed’s Beige Book

Moderate Growth, Positive Expectations, Energy Costs a Concern

Economic activity across the South expanded at a moderate pace in late February through March, said the Federal Reserve’s latest Beige Book overview of the Sixth Federal Reserve District, which includes Georgia. Auto sales and hospitality reported robust activity. Homebuilders and brokers experienced improved sales of new and existing homes. Rising energy prices drew the most concerns from contacts. Within the banking sector, community banks reported high liquidity from increased deposit balances and weak loan demand. Auto lending was a bright spot. Higher regulatory costs and pricing competition were among the most significant concerns by banks. Here’s a link to the full Sixth-District report.

 

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Bush Feeling Better about Southern Economy

SNL Financial commentator and bank analyst Nancy Bush writes that she’s more encouraged about the economy and prospects for banks across the South in an article titled, “Is the South Rising Again?” She cites the good market performance of several Southeastern banks during the first quarter, the emergence of auto and other manufacturing in Georgia and other states, promising Federal Reserve economic reports and appealing quality-of-life-factors as reasons for the region to be optimistic. Here’s a link to the article, shared with permission from GBA Associate Member SNL Financial.

 

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Basic Deposit and Operations Compliance Seminar April 24

Don't wait any longer to register for GBA’s Basic Deposit and Operations Compliance Seminar. This seminar will be held on Tuesday, April 24, at the Idle Hour Country Club in Macon. In easy-to-understand language, this one-day seminar will cover the regulatory requirements for deposit and operations compliance. The following topics will be covered:

  • BSA, CIP, OFAC

  • Reg DD, Reg E, Reg CC

  • New overdraft disclosure requirements, opt-in process

  • NOW & MMDA account rules

  • New privacy notices.

The registration fee is $225 for members and $175 for any additional registrants from the same institution. Click here to register. With questions, please contact GBA's Courtenay Pope at 404.420.2015.

 

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Basic Loan Compliance Seminar April 25-26

GBA’s Basic Loan Compliance Seminar will be April 25-26 at the Idle Hour Country Club in Macon. This two-day seminar provides an in-depth look at loan compliance. It will cover basic compliance requirements, common problem areas and will offer extensive question-and-answer sessions to cover bank-specific details. We will also complete several real-world loan compliance reviews and develop risk-based loan compliance self-audit checklists. Topics to be covered:

  • Truth-in-Lending requirements

  • GFE, HUD settlement statements

  • Higher-priced mortgage loans, escrow (Truth-in-Lending, RESPA disclosures)

  • Flood insurance

  • Fair Credit Reporting Act/FACT Act

  • Reg B, fair lending.

The registration fee is $225 for members. GBA has reserved a room block of rooms at the Homewood Suites with a group rate of $109 single or double per night upon availability. When making reservations, please ask for the Georgia Bankers Association block. Call the hotel at 478.477.9776 for room reservations. Click here to register. With questions, please contact GBA's Courtenay Pope at 404.420.2015.

 

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Georgia Banking School: An Essential Step to Enhance Your Career April 29 - May 4

The Georgia Banking School is a three-year school designed for first-level and mid-level managers to provide a thorough understanding of critical banking functions such as asset-liability management, lending, human resource management, sales and marketing, investments and technology. In addition, the legal, regulatory and economic environments are analyzed from the perspective of the banking industry. Enroll now and join the Class of 2014. This year’s session will take place April 29 - May 4 at the University of Georgia’s Center for Continuing Education in Athens. Click here to register online. For more information, please contact Marybeth Jones at 404.420.2032.

 

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Southern Operations & Technology School April 29 - May 4

A-to-Z Operations and Technology Training Can Give your Career a Boost

The Southern Operations & Technology School is the most comprehensive resource in the Southeast for bank operations and technology training. The 2012 session will be April 29 - May 4 at the University of Georgia in Athens. The primary goals of the school are to strengthen management skills, increase awareness of regulatory and compliance issues, expose students to current and future technologies and products, develop an understanding of the interrelatedness of key operations areas and how they contribute to the bank’s profitability, and promote an understanding of how operations and technology affect other functional areas of the bank. Click here to register online. For more details or to register, please call GBA’s Marybeth Jones at 404.420.2032.

 

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Rural Development & Lending Conference May 10-11

This year’s Rural Development and Lending Conference is May 10-11 at the Savannah Riverfront Marriott. The Hon. John Bulloch, Chairman, Agriculture and Consumer Affairs Committee, Georgia State Senate, will give an agriculture legislative update. Other topics include real estate trends, a regulatory update, current legal issues in agriculture, a peer exchange, market trends and an economic overview. For hotel reservations, please call the hotel directly at 912.233.7722. Click here for full details and to register online. With questions, please call GBA’s Marybeth Jones at 404.420.2032.

 

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CEO Panel to Headline Leadership GBA Conference July 22-25

Even during a tough economy, some banks have managed to continue to post relatively strong results. Join Chuck Beard, President & CEO of Commercial Banking Company, Valdosta; Rick Whaley, President & CEO of The Citizens Bank of Americus; and Tom Wiley, President & CEO The Coastal Bank, Savannah, as they share their methods and philosophies for profitably growing their institutions. Leadership GBA’s 2012 Leadership Conference is July 22-25 at The King and Prince on St. Simons Island, GA. GBA has reserved a block of rooms at The King and Prince at a reduced rate of $209 to $229 per night. Reservations may be made by calling the hotel directly at 912.638.3631 or 877.543.6077. Be sure to say you are with the GBA to receive this special rate. The cut-off date for reservations is June 18, 2012. After this date, all reservations will be subject to prevailing rate and space availability. With questions about the conference or Leadership GBA in general, please contact GBA’s Susie McGehee at 404.420.2010 or Jennifer Stevens at 404.420.2024.

 

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Webinars

Escrow Rules, Investment Strategies and Robbery Prevention among Highlighted Webinars

A GBA Webinar is a great way to quickly get the training you need right from the comfort of your office. Here is a sample of upcoming offerings. Check the Calendar of Events for any webinars you are interested in at www.gabankers.com.

All webinars are live and allow time for questions and answers. The $255 registration fee gives you access to one web site “seat,” one telephone site license and all handout materials. If you can't attend the webinar, you may buy the audio CD, handout materials and a password to see the information online. With questions, please contact GBA's Courtenay Pope at 404.420.2015.

 

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AIB Instructor-Led Online Courses for May

Here are the instructor-led AIB online classes offered the week of May 14. These courses are instructor-facilitated with weekly assignments but can be taken from your home or your office. All you need is a computer, printer and Internet access. Classes with an asterisk * require Microsoft Excel Software. Please register two weeks in advance to secure a seat in the class.

There is still room in the classes offered the week of May 7. Please register as soon as possible.

Please see the AIB Online Course Schedule for a complete listing or contact GBA's Alison Moreau at 404.420.2034 with questions.

 

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Looking for a No-Cost, Value-Added Customer Appreciation Program? Affinion Has It

Affinion's Customer Appreciation Program has been increasing customer retention among its clients for 20 years. The program allows your bank to offer a $1,000 Accidental Death and Dismemberment policy to customers as a sign of your appreciation for their loyalty and business. Endorsed by the both the American Bankers Association and the Georgia Bankers Association, the Affinion program provides a no-cost, no-risk opportunity to express your appreciation and earn ongoing fee income. For information, contact Morgan Harris at 615.764.2753.

 

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Employee Benefit Enhancements are Easy and Affordable with Holmes-Shaw

Holmes-Shaw has built a full portfolio of complementary products and services around the GBA Insurance Trust's core benefit programs, allowing participants and their employees to expand their benefit selections affordably. Some of these products and services include:

 

  • Medical Benefits

  • Group Life Insurance

  • Long Term Disability Insurance

  • Dental Coverage

  • Voluntary Accidental Death Coverage

  • Voluntary Short Term Disability Insurance

  • Voluntary Life Insurance.

The wide variety helps Holmes-Shaw meet each company's unique needs, and Holmes-Shaw develops programs directly with insurance companies or through strategic partnerships, allowing them to present the best options to its clients. With questions or to learn more about how Holmes-Shaw can help your company enhance its current benefit offerings, contact Bruce Shaw, 770.642.2150 or the GBA's Bogan Brannen, 404.420.2014.

 

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Find a Job, Post a Job with GBA Job Bank

The Georgia Bankers Association offers free job posting resources for our member banks. These listings can be viewed online or through our print publication, the GBA Bulletin, mailed every other week. Resume postings are also available. For more information, please contact Kenyetta Parks at 404.420.2035.

 

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Read All About It: Send Us Your News

Please remember to include the Georgia Bankers Association on the list of recipients for announcements about promotions, new employees and special recognition your bank has received. We want to share your news with your colleagues across the state. Please forward your announcements and photos to GBA's David Oliver and Bogan Brannen.

 

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Newsmakers

 

Atlanta -- SunTrust Bank

Reginald "Reggie" Davis has joined the bank as Executive Vice President and Head of Consumer Deposit Products.

 

Dalton -- BB&T (formerly Hardwick Bank)
Our condolences to the family and friends of Ken Boring, former CEO of Hardwick Bank, who passed away April 8.

 

Greenville -- Greenville Banking Company

Congratulations to President, John Townsend, the officers, employees and directors of the bank which is celebrating it’s 125th Anniversary this month.

 

Davis

 

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