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Schmid Named Kansas City Fed President

Congratulations to former NBA member Jeffrey Schmid on his appointment as president and CEO of the Federal Reserve Bank of Kansas City. Schmid, a Nebraska native, began his career in 1981 as an FDIC field examiner in Kansas City, Mo. From 1989 to 2007, he served as the president of American National Bank (Omaha). He was the chairman and CEO of Mutual of Omaha Bank from the bank’s establishment in 2007 to its sale to CIT Group in 2019. He then joined Dallas-based Susser Bank as CEO. In 2021, he was named the Southwestern Graduate School of Banking Foundation president and CEO.

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On Monday, a federal judge in Texas issued an order to block the enforcement of the Consumer Financial Protection Bureau's (CFPB) Section 1071 final rule. This order was granted while the Supreme Court considers a challenge to the constitutionality of the CFPB's funding structure. The request for the injunction came from the American Bankers Association (ABA), the Texas Bankers Association (TBA) and Rio Bank, based in McAllen, Texas, who filed a lawsuit to prevent implementation of the final rule.

While the plaintiffs sought a nationwide injunction, the injunction's scope was limited. It provides relief only to member banks of the ABA and TBA nationwide, rather than applying to all financial institutions covered by the rule.

The relief will remain in effect while the Supreme Court hears the constitutional challenge to the CFPB’s funding structure in the case CFPB v. Community Financial Services Association of America. Arguments in the case are scheduled for October. 

“TBA, Rio Bank and ABA are pleased with this immediate victory, but we remain committed to our larger case challenging the lawfulness and scope of CFPB’s over-reaching 1071 Final Rule that will only harm lending to small businesses and minority and women-owned enterprises. We look forward to the next steps in this case,” the plaintiffs said in a statement. 

Read the Order

Legislative, Policy & Regulatory Updates

Credit Card Competition Act Not Included in Senate Defense Bill

Despite efforts by the legislation’s sponsor, Sen. Roger Marshall (R-Kan.), the Credit Card Competition Act (S. 1838) was not included in the National Defense Authorization Act (NDAA) legislation passed by the Senate last week. However, supporters may attempt to attach the bill to the NDAA during the reconciliation of versions of the bill passed by the House and Senate. 

Bankers are urged to contact their lawmakers and ask them to oppose the Credit Card Competition Act. “This legislation is an anti-consumer, anti-competitive, and cynical attempt by the largest global merchants and biggest grocery chains to obtain a subsidy for themselves at the expense of smaller competitors and consumers,” the NBA and other state banking associations noted in a letter to Congress earlier this year. 

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Regulators Update Liquidity Risk, Contingency Funding Plan Guidance

Federal banking regulators have issued updated guidance on liquidity risks and contingency planning, which emphasized the importance of being prepared for unprecedented deposit outflows that can lead to institutional collapse. The regulators urged depository institutions to include the discount window in their contingency funding plans and expect them to be operationally ready to use it if necessary, conducting periodic transactions as part of their plans.

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FHA Proposes Removing Face-to-Face Requirement for Borrowers in Default 

A proposed rule from the Federal Housing Administration (FHA) would make permanent a pandemic-related rule that waives the Department of Housing and Urban Development’s requirement for mortgagees to meet in person with borrowers who are in default on their mortgage payments. 

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Meet Jacob Rupe! He interned at Waypoint Bank in Eustis and enjoyed learning more about the loan department. His internship has taught him the importance of getting to know the bank’s customers and listening to their concerns. He said the most beneficial part of the experience was getting to work with loan officers one-on-one.

Jacob is a senior Agribusiness major at the University of Nebraska-Lincoln and a graduate of Eustis-Farnam High School.

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Scenes of Nebraska Calendars

Order your calendars by the end of this week (Aug. 5) to have them shipped to you by early October. Calendars ordered by the final deadline (Sept. 3) should be shipped by the end of October.

Husker Harvest Days Admission & Lunch Tickets

There’s less than a month until the ordering deadline for Husker Harvest Days tickets! The NBA has admission tickets at a discounted rate of $9 - a savings of $6 off the gate price. Lunch tickets are also available for $15.

Husker Football & Volleyball Schedule Cards

Don’t forget to order the free Husker schedule cards before the fall sports begin! Sharing these cards with your customers is a great way to show your Nebraska and Husker pride. The schedule cards will once again feature both football and volleyball game dates and come in bundles of 250.

Contact Laurie Johnson at the NBA at [email protected] or 402-474-1555 with questions on any of these items.

The ABA is hosting a webinar on Aug. 4 at 10:00 a.m. CDT on recent developments related to Section 1071. Legal experts and senior leaders from ABA, TBA and Rio Bank will provide more details on this week’s court order from a federal judge in Texas delaying the CFPB’s implementation. The free webinar is open to ABA members and nonmembers. 

Legal questions about the court order or regulatory compliance with Section 1071 can be submitted in advance by emailing [email protected].

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