WIXLIB

BANCSERVE PRESSAug/Sept 2017BANCSERVE/HEALTHSERVE STAFFGovernment Relations:Steve Turkiewicz, CAEPresident/CEOEducation & Member Services:Pam O’ReillyAssociation Services DirectorHealthServe:Jill Martin, CISRInsurance Service Rep.Deannie Higgins, CISRInsurance Service Rep.Amy MillerAdministrative AssistantBANCSERVE Insurance Agency:Tempi Ruth, CIC, CAE, CISRSales DirectorBookkeeping:Karmen MillhouseAccounting TechnicianMBA/BANCSERVE, Inc.1 N. Last Chance Gulch, Ste.4Helena, MT 59601Telephone:800/541-5126406/443-4121Fax: 406/443-7850HealthServe1 N. Last Chance Gulch, Ste.4Helena, MT 59601Telephone:877/443-0520406/443-0520Fax: 406/495-2674Page 4Tax Reform: A Hard Job Worth DoingNothing in Washington that is worth doing is easy, and tax reform is no exception.There is no doubt that our tax code needs a rewrite. As Congress’ Joint Committee onTaxation points out, since our last overhaul in 1986, our economy has nearly doubledin size, and the internet and globalization have fundamentally changed the way we dobusiness.Today’s tax code fails to recognize these changes, puts us at a global competitivedisadvantage (the combined state and federal U.S. corporate tax rate of more than 39percent is two and three times higher than that of “competing” countries) and ultimatelyhinders job and economic growth.The good news is that leaders in the House, Senate and White House agree on the needfor tax reform and are committed to its enactment. While that creates a solid foundationfor this important effort, we all know it will take fortitude and persistence to change a taxcode that now spans 74,000 pages.ABA is strongly in favor of tax reform that strengthens economic growth and creates jobs.A stronger economy would be good for the country, our members, and their customers.We have made ourselves a resource to the lawmakers and staff who are at the center ofthis enormous undertaking, providing analysis and expertise. We also are encouragingbankers to raise this topic in meetings with their elected representatives.Of course, like others, we have strong opinions about specific provisions, like thedeductibility of interest and the tax-favored status of bank competitors. But we also knowthat economic growth — which tax reform is intended to spur — is priority number onefor our industry, and that any package put forward must be evaluated as a whole, based onits net impact on the economy, banks and bank customers.That is why we developed a set of core principles for tax reform that will serve as thebasis for our comprehensive analysis of any package that emerges from the deliberations.Those principles, which are available in full on aba.com, urge policymakers to: Lower rates for all businesses substantially — 15 to 20 percent has been proposed— to boost growth and allow U.S. businesses to be competitive in the global market Broaden the base and simplify the tax code to level the playing field Specifically eliminate favored tax treatment enjoyed by credit unions and the FarmCredit System Consider carefully the effects of any potential effort to limit the deductibilityof interest, which could adversely impact economic growth. (The extent of tax ratereductions will be a key factor in assessing the broader impact of any changes to thedeductibility of interest.) Avoid industry-specific taxes, which would be punitive, unfair and slow economicgrowth Provide adequate transition time for the market and balance sheets to adjust to thenew systemVisit us on the web at www.montanabankers.comOr call: 800/541-5126

Aug/Sept 2017BANCSERVE PRESSPage 5ABA developed these principles through an internal tax reform working group that has coordinated closely withABA’s banker-led Taxation Administrative Committee and solicited feedback from bankers in various forums.We have highlighted the principles in communications to Capitol Hill, informing members that we will stronglysupport tax reform efforts that align with these principles.Our goal is to encourage a smart approach to comprehensive tax reform that can help America’s communitiesthrive.As a veteran of the Treasury Department in the early 2000s when tax cuts were enacted, I know this undertakingis hard — I have the bruises to prove it. But that doesn’t mean it can’t be done. It can, and we should doeverything in our power to make it happen.Rob Nichols, President and CEOAmerican Bankers AssociationWashington UpdateAugust/September 2017Job Title: Mortgage Loan OfficerEmployer: Farmers State BankLocation: Kalispell and Helena MontanaFarmers State Bank is seeking a full time Mortgage Loan Officer based out of the Kalispell and Helena markets. Theposition will be responsible for but not limited to; Maintain mortgage loan application volume in accordance with bankgoals and expectations. Interview loan applicants, record income, debt/credit history, and requests documents to verifysame. Underwrite loan applications according to Fannie Mae, Freddie Mac, investor and internal guidelines. Exhibitsprofessionalism while meeting with customers both in person and on the phone, making sure to exceed the customersexperience and satisfaction. Monitors lock-ins, commitment expirations and status of loans to achieve timely, satisfactoryclosings. Participates in the banks business development activities, represents the Bank in industry and professionalassociations, community organizations, local business groups, and promotes the Banks favorable image.Minimum Qualifications: High School Diploma or GED Have capacity to work independently as well as with a team. Ability to prioritize multiple tasksPreferred Qualifications Knowledge of Conventional, VA and RD loans. 5 years secondary market/consumer/commercial real estate and/or title documenting experience. Excellent skills in customer service and communication.Highlights: salaried position, local decision making, local processing, simple and concise products, portfolio loan options, and wherevacations are real vacations and your team covers for you.Full Benefit PackageTo apply interested parties should email resumes to Scott Falagan: scottf@farmersebank.com, then complete application on ourwebsite at www.farmersebank.com and send application and resume via mail to:Farmers State Bank, Attn: HR Department, PO Box 190, Victor, MT 59875.Farmers State Bank is an Equal Opportunity EmployerClose date: open until filledVisit us on the web at www.montanabankers.comOr call: 800/541-5126

BANCSERVE PRESSAug/Sept 2017By Victoria E. StephenPage 6Do We Finally Have a Better TRID?On July 7th the CFPB finally issued its much-anticipated final rule amending various parts of the TILA-RESPAIntegrated Disclosure Rule. Clocking in at 560 pages, the final rule clarifies a variety of issues that have beenthorns in the sides of lenders across the country for two years now, but it also leaves much to be desired.The final rule is effective October 1, 2017 but compliance isn’t mandatory until October 1, 2018. During thisyear-long optional compliance period, the bank can comply with the changes all at once or phase in the changesone at a time, even within the course of a single transaction.Despite this flexibility, the bank cannot phase in certain parts of the final rule in a way that would violateexisting rules, though. For example, the bank can’t provide a Good Faith Estimate followed by a ClosingDisclosure for a transaction secured by a cooperative unit because the current rule requires that disclosures onthe Loan Estimate also be included on the Closing Disclosure.Tolerances for the total of paymentsThe first of the substantive changes is the addition of a tolerance provision to the Total of Payments thatparallels the finance charge tolerance. Generally, the Total of Payments disclosure will be considered accurateif it is understated by no more than 100 or overstated at all, although this varies some based on the type andstatus of the loan.Privacy and sharing of informationThe CFPB noted that “it is usual, accepted, and appropriate” for the Closing Disclosure to be provided not onlyto consumers and sellers, but also their real estate brokers and other agents. The new rule clarifies that the bankmay provide separate disclosures to a borrower and seller if state law prohibits sharing this information, as wellas in any other situation where the bank chooses to provide separate disclosures.CooperativesThis change is probably the most straightforward. Cooperative units will now be subject to TRID regardlessof whether they are considered real property under state law. If you recall, TRID applies if a loan meets threebasic tests: 1. consumer purpose; 2. closed end; and 3. secured by real estate (other than reverse mortgages).The problem is that TRID itself doesn’t define real property; rather, state law does. With this change, the CFPBsought to create a uniform rule to avoid “uncertainty and potential inconsistency” in providing disclosures forcooperatives.Housing assistance lendingRegulation Z provides an exemption from the TRID requirements for low-cost, non-interest bearing,subordinate-lien housing assistance loans that satisfy six criteria, and Regulation X provides a similarexemption. One of the criteria limits the costs that may be paid by the borrower without loss of eligibility forthe partial exemption, and the final rule broadens these costs. Transfer taxes, recording fees, application fees,and housing counseling fees may now be paid by the borrower, and recording fees and transfer taxes are alsoexcluded from the 1-percent cap on total costs payable by the borrower.Further, it hadn’t been clear whether the lender was allowed to provide TRID disclosures even if the six criteriaof the exemption had been met. The new rule generally says the answer is yes. Assuming the loan meets the sixcriteria, the lender may provide either the general TIL disclosures or a compliant LE and CD, and does not needVisit us on the web at www.montanabankers.comOr call: 800/541-5126

Aug/Sept 2017BANCSERVE PRESSPage 7to provide the special information booklet, GFE, or HUD-1.Settlement service provider listBesides these new provisions, the final rule also clarifies several other existing areas of concern. One is whetherto apply the 10% tolerance level when the bank actually allowed the borrower to shop for a service, but failed toinclude the service on the settlement service provider list (SSPL). The final rule allows the bank to do so as longas it actually allows the borrower to shop; if it doesn’t, then the 0% tolerance applies. How does the bank provethat it allowed the borrower to shop though? Somewhat unhelpfully, the CFPB simply says that it depends “onall the relevant facts and circumstances” in each case.As we know, if the bank wants to apply “shopping tolerance levels” to settlement charges, it has to provide anSSPL listing the services it requires and for which the borrower can shop. For example, if the bank requireslender’s title insurance and allows the borrower to shop for it, the creditor has to disclose the lender’s titleinsurance on the Loan Estimate, and include it on the SSPL with at least one available provider.But what about fees that the lender doesn’t require, but the title company does? The final rule makes clear thatthe bank is not required to provide a detailed breakdown of all related fees that are not directly required by thebank, like a notary fee, title search fee, or other administrative services needed to provide the service requiredby the lender.What about everything else?As important as what the final rule does clarify, however, is what it doesn’t. Yes, we’re talking about theinfamous “black hole” problem. Instead of tackling the really tough issues like this one, the CFPB punted andissued a new proposal to request additional comments on it instead. If you’ve been lucky enough to not yetencounter this, a timing issue arises when the bank has to reset tolerances on the Closing Disclosure, but closinghas also been delayed.The new proposal would allow the bank to reset tolerances on the Closing Disclosure regardless of whenclosing is scheduled. The CFPB seeks comments on whether allowing this might have other undesired effects,and the deadline for submitting these is 60 days after publication in the Federal Register.While we still have to wait on a verdict for the black hole problem, there is a laundry list of other changesand clarifications that are worth reviewing in the final rule, including Calculating Cash to Close calculations,construction loan disclosures, escrow closing notices, partial payment disclosures, and several technicalcorrections. Find the full rule here: 7 cfpb e-Requirements TILA.pdfVictoria E. Stephen, Associate General CounselVictoria E. Stephen serves as Associate General Counsel for ComplianceAlliance. While receiving her Bachelor of Business Administration in BankingFinance from the McCombs School of Business, Victoria worked in both depositand lending services. She continued her interest in financial services at theUniversity of Texas School of Law by focusing on secured transactions, taxation,contracts, and corporate governance. Victoria has since worked in corporatetax law, mergers and acquisitions, and performed legal research on a range ofregulatory issues. As one of our hotline advisors, Victoria helps ComplianceAlliance members with a variety of compliance and regulatory questions.Visit us on the web at www.montanabankers.comOr call: 800/541-5126

Aug/Sept 2017BANCSERVE PRESSPage 8Is Your Debit Card Brand ProgramWorking For Your BankSeptember 6th, 2017 / 3:00 PM ESTSpeaker:Richard Green, Vice President, Business Development at PULSE, A Discover CompanyABSTRACT: Running a bank is a full time job and letting an existing signature debit network contract simplyroll over can seem like the right thing to do, but a closer look might prove otherwise. If it has been a few yearssince you last signed a contract with your signature network, now is the time to reassess. You are more thanlikely leaving non-interest income on the table, paying unnecessary fees or dealing with burdensome terms thatrestrict you from adapting to shifting market trends, including PINless and mobile transactions, the EMV liability shift and changes in the debit card landscape.LearningObjectives: In this presentation, you will learn: How a thoughtful review and analysis of their debit card program could drive greater non-interestincome for their institutions Practical, current strategies to reenergize your debit card program How issuers like you are seeing a significant increase in its debit card income after a brand switchRegistration Link: t/registration.htmlPlan ahead for the 2018 Executive Development ProgramOne of today’s challenges for our member banks is developing the bank’s “next generation” leadership. Today’sbank executive knows that tomorrow’s banking leader must understand the issues facing their institutions and bein a position to grow, contribute and make a difference. To meet this mounting need, MBA offers the ExecutiveDevelopment Program (EDP).Focusing on the strategic, fiscal management and communication skills required for successful leadership of abank, the program delivers real-world lessons that participants can put into immediate practice to benefit theirorganizations. The curriculum includes all the basic knowledge required of an effective banking leader: Understanding the Big PictureAnalyzing Bank Financial StatementsLeadership and ManagementBank ProfitabilitySales Performance, Expectations and MeasurementAsset Liability Management Credit and Risk ReviewLegislation and Politics on Bank PerformanceAudit and ComplianceCommunication and Influencing OthersNegotiations and Conflict ManagementCredibility and EthicsContact Pam O’Reilly for registration materials or with questions. 406-441-4703 or pam@montanabankers.comVisit us on the web at www.montanabankers.comOr call: 800/541-5126

Aug/Sept 2017BANCSERVE PRESSPage 9Banker's Toolbox Launches Due DiligenceManager To Address Beneficial OwnershipRulesHolistic and Active Approach to FinCEN's "Fifth Pillar" Integrated with Comprehensive BSA SolutionAUSTIN, Texas, Aug. 16, 2017 /PRNewswire/ -- Banker's Toolbox, Inc., the leader in Bank Secrecy Actanti-money laundering compliance solutions for financial institutions, announced today the launch of its DueDiligence Manager solution for Beneficial Ownership.This extension of the existing BAM platform delivers exciting and holistic features including a completelyflexible question builder and automated periodic risk reviews to remain watchful in the pursuit of accuracy andvigilance against criminal behavior."Beneficial Ownership as the "fifth pillar" for anti-money laundering (AML) programs represents the mostsignificant regulatory challenge to community financial institutions since the USA PATRIOT Act in 2001,"said John Meyer, Chief Product Officer of Banker's Toolbox. "It is our role as compliance partner for ourfamily of customers to assist in these challenges."Due Diligence Manager can be deployed both within the Banker's Toolbox BAM solution or as a standalonesolution to meet the requirements of Beneficial Ownership. This type of flexible implementation is a keydifferentiator for Due Diligence Manager. "We are pleased that financial institutions that are not using BAM still have the ability to use Due Diligence Manager. The beauty of this product, is that it conforms to yourprocess, it changes for you, not the other way around," states Meyer.Banker's Toolbox also provides consulting services for Customer Due Diligence business processes, policies,procedures and calibration.All covered financial institutions are required to comply with the final rule by May 11, 2018."With our banking expertise, focus on transparency, flexibility and integration capabilities, Banker's Toolboxis uniquely qualified to build better solutions for the community financial institutions we serve," said DebEshbaugh, Senior Product Manager for the BAM platform. "Due Diligence Manager is another example ofthe leadership we will continue to provide in advance of all future developments."To learn more about Banker's Toolbox, visit www.bankerstoolbox.com.About Banker's Toolbox, Inc.Austin, TX-based Banker's Toolbox, Inc. helps organizations manage risk and streamline compliance. Thecompany's product suite consists of proven solutions for money laundering detection and reporting, riskmanagement through fraud prevention, secure wire processing automation, and commercial real estate loanportfolio risk assessment. The Banker's Toolbox team is a unique combination of seasoned bankers, formerregulators, and information technology experts. For more information, visit the company's website at www.bankerstoolbox.com.CONTACT: Banker's Toolbox Contact: Kep Lee, kepl@bankerstoolbox.comVisit us on the web at www.montanabankers.comOr call: 800/541-5126

Aug/Sept 2017BANCSERVE PRESSPage 102017 MBA Conferences and Workshopsq 2017 IRA Basics & Update, Hilton Garden Inn, Missoula - Sept. 6-7q 2017 Security Conference, Best Western GranTree, Bozeman - Sept. 11-12q 2017 Lending Compliance, Best Western Gran Tree, Bozeman - Sept. 13-14q 2017 Women in Banking, Best Western Gran Tree, Bozeman - Oct. 4-5Watch for our next set of Conferences and Workshops coming in 2017 at www.montanabankers.com or for moreinformation contact Pam O’Reilly, Association Services Director, at 800/541-5126 or pam@montanabankers.com.MBA Education Program Web SeminarsThe Montana Bankers Association is providing live web seminars targeted to a more advanced audience, inaddition to new programs for previous participants. If you are looking to supplement your current educationplan in a cost efficient

Northeastern: Rich Kingsley, President/CEO Valley Bank Glasgow, MT Bob Galt, President/CEO First State Bank of Malta . Ranking as to need/want-sults need/want 3 Executive Learning Path CB Security Executive (CBSE) 2 . To provide further feedback or if you have questions for MBA training staff, contact Pam O'Reilly at pam@montanabankers .