Vol. XXXIV, No. 7 Mandated Vaccine ExemptionsThe Nebraska Legislature has passed LB 906, which requires employers who mandate COVID-19 vaccinations to grant a vaccine exemption for medical or religious purposes. The new language took effect on February 28. Under LB 906, any employer that requires its job applicants or employees to be vaccinated against COVID-19 must grant an exemption from vaccination for individuals who provide a completed vaccine exemption form, seeking an exemption on the basis of a medical or religious reason. The form is available from the Nebraska Department of Health and Human Services and can be obtained at: https://dhhs.ne.gov/Documents/COVID-19-Vaccine-Exemption-Form.pdf. The vaccine exemption form allows an individual to declare either: 1) that a healthcare practitioner has provided the individual with a signed, written statement that, in the healthcare practitioner's opinion, receiving a COVID-19 vaccine is either medically contraindicated for the individual or medical necessity requires the individual to delay receiving such a vaccine; or 2) that receiving a COVID-19 vaccine would conflict with the individual's sincerely held religious belief, practice or observance. Individuals seeking an exemption for medical reasons must also provide a signed, written statement from a healthcare practitioner identified in the completed form. While an employer may require its exempted employees to be periodically tested for COVID-19, the testing must be conducted at the employer's expense. The new law also allows employers to require its exempted employees to wear or use personal protective equipment provided at the expense of the employer. Full-Text PDF The foregoing Compliance Update is for informational purposes only, and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Vol. XXXIV, No. 8 CFPB-Consumer Reviews-Unfair and Deceptive ActsI. Introduction The Consumer Financial Protection Bureau (CFPB) has issued a bulletin to remind regulated entities of the requirements of the CFPB and explain how the CFPB intends to exercise its enforcement and supervisory authorities when firms frustrate the ability of consumers to post honest reviews of products and services that they use. Firms taking such actions may be engaged in conduct prohibited by the Consumer Financial Protection Act (CFPA). II. Violations of the Consumer Financial Protection Act Sections 1031 and 1036 of the CFPA prohibit a covered person or service provider from engaging in an "unfair, deceptive, or abusive act or practice" that is "in connection with any transaction with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service." There are a number of ways that covered persons or service providers could violate this prohibition by interfering with consumer reviews.
III. Conclusion In summary, covered persons and service providers are liable under the CFPA if they deceive consumers using restrictions on consumer reviews that are unenforceable under the Consumer Review Fairness Act, if they unfairly deprive consumers of information by using such restrictions, or if they deceive consumers who read reviews about the nature of those reviews. If the CFPB identifies a violation of the CFPA, it intends to use its authorities to hold the violators accountable. Full-Text PDF The foregoing Compliance Update is for informational purposes only, and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Vol. XXXIV, No. 6 Non-Bank Marketing Restrictions: Nebraska State LawSome customers of Nebraska banks have recently received mailings relating to “matters of importance relating to their mortgage.” These letters typically include the name of the bank, loan amount and loan closing date, information that is readily available through public records; they also generally include some form of solicitation for a product or service offered by the company sending the communication. These communications can be misleading and generally are confusing to customers of the bank who may believe they are being contacted by their lender or that their lender has shared or released information regarding their loan to a third party. These types of misleading communications or solicitations were more prevalent in the early 2000s and resulted in the NBA seeking legislation to place restrictions on these types of activities. The provisions of Neb.Rev.Stat. §§ 8-2501 to 8-2505 are designed to address of these types of solicitations by non-banks (See, NBA Compliance Handbook, Volume II, Bank Promotion, Non-Bank Marketing Restrictions: Nebraska State Law). Section 8-2501 lists the requirements for using the name of a non-affiliated bank in a solicitation for business. The statute requires that a clear and conspicuous statutorily prescribed notice of: be given that the sender of the communication or solicitation is not affiliated with the bank, the name of which is referenced in the communication or solicitation. The statute requires a “clear and conspicuous” notice of “non-affiliation” to be of the same font size used to identify the financial institution and that the name of financial institution must be in close proximity to that notice including on an envelope or through an envelope window containing the statement. The statute also requires the non-affiliation disclosure to specifically state that the solicitation is not authorized by the financial institution. The Nebraska Department of Banking and Finance (Department) has investigated a number of these solicitations and responded in cases in which the company making the solicitation has failed to comply with the requirements of §8-2501. In these cases, the Department has directed the solicitor to either immediately comply with the requirements of §8-2501 to 8-2505 or to stop advertising using the name of an unaffiliated financial institution in Nebraska. The Department is authorized to take administrative actions or to refer the matter to other law enforcement agencies in Nebraska for a failure to respond to the Department’s directive. Full-Text PDF The foregoing Compliance Update is for informational purposes only, and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Vol. XXXIV, No. 5 Supreme Court Suspends OSHA Vaccine-for-Testing ETSOn Jan. 13, 2022, U.S. Supreme Court issued an order suspending OSHA’s vaccine-for-testing emergency temporary standard (ETS). The ETS would require employers with at least 100 employees to ensure workers are either vaccinated or get tested weekly for COVID-19 and wear masks. The Sixth Circuit Court of Appeals had previously lifted the Fifth Circuit Court of Appeals’ prior stay on the ETS. The U.S. Supreme Court’s order reinstates the stay on the ETS, thereby suspending implementation of the ETS pending further review. Full-Text PDF The foregoing Compliance Update is for informational purposes only, and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Community Bank Leverage RatioVol. XXXIX, No. 2 The federal banking agencies have issued an interagency statement on the optional community bank leverage ratio framework. The temporary relief measures affecting the framework will expire on December 31, 2021. Beginning on January 1, 2022, the community bank leverage ratio requirement will revert to greater than 9% as established under the 2019 final rule. The community bank leverage ratio framework includes a two-quarter grace period that allows a qualifying community bank to continue reporting under the framework and be considered “well capitalized” as long as its leverage ratio falls no more than one percentage point below the applicable community bank leverage ratio requirement. The community bank leverage ratio framework is optional. A qualifying community bank with less than $10 billion in total consolidated assets as of the report date and that meets other prudential criteria is eligible to opt into the framework. The interagency statement serves as a reminder that a qualifying community bank that elects the community bank leverage ratio framework will be subject to a community bank leverage ratio requirement of greater than 9% when it submits its March 31, 2022, call report. Starting on January 1, 2022, a qualifying community bank must report a leverage ratio greater than 8% to use the two-quarter grace period. The grace period allows a qualifying community bank additional time to build capital and manage its balance sheet to either remain in the framework or prepare to comply with the generally applicable risk-based and leverage capital requirements. The interagency statement clarifies that a community bank would not be viewed negatively within the examination process due solely to its use of the grace period. Full-Text PDF The foregoing Compliance Update is for informational purposes only, and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Community Reinvestment Act Thresholds Vol. XXXIX, No. 3 The federal banking agencies have recenty amended their Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define “small bank” or “small savings association” and “intermediate small bank” or “intermediate small savings association.” As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index. Effective January 1, 2022, banks that, as of December 31 of either of the prior two calendar years, had assets of less than $1.384 billion are “small banks.” Small banks with assets of at least $346 million as of December 31 of both of the two prior calendar years and less than $1.384 billion as of December 31 of either of the two prior calendar years are “intermediate small banks.” The asset-size thresholds for “small savings associations” and “intermediate small savings associations” are identical to those set forth above for “small banks” and “intermediate small banks.” Full-Text PDF The foregoing Compliance Update is for informational purposes only and does not constitue legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to hlep answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Regulation Z Higher Priced Mortgage Loan Escrow RequirementsVol. XXXIX, No. 4 The Consumer Financial Protection Bureau (CFPB) has issued a final rule to reflect a change in the asset size for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the 12-month period ending in November 2021. The exemption threshold has been adjusted to increase from $2.230 billioin to $2.236 billion, based on the increase in the average of the CPI-W for the 12-month period ending in November 2021. As a result, creditors with assets of less than $2.236 billion (including assets of certain affiliates) as of December 31, 2021, are exempt, if other requirements of Regulation Z are also met, from establishing escrow accounts for higher-priced mortgage loans in 2022. This asset limit also applies during a grace period, in certain circumstances, with respect to transactions involving applications received before April 1, 2023. The adjustment to the escrow exemption asset-size threshold will also increase a similar threshold for small-creditor portfolio and balloon-payment qualified mortgages. Balloon-payment qualified mortgages that satisfy all applicable criteria, including being made by creditors that have (together with certain affiliates) total assets below the threshold, are also exempt from the prohibition on balloon payments for high-cost mortgages. The final rule became effective on January 1, 2022. Full-Text PDF The foregoing Compliance Update is for informational purposes only and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
Home Mortgage Disclosure Act (HMDA) - Change in Exemption Threshold Vol. XXXIX, No. 1 The Board of Governors of the Federal Reserve System recently published in the Federal Register its annual notice of the asset-size exemption threshold for depository institutions under Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). By this amendment, the Board of Governors has increased the asset-size exemption threshold to $50 million in 2022 for depository institutions that are required to report data under HMDA. As a result of this action, depository institutions with assets of $50 million or less as of December 31, 2021, are exempt from data collection in 2022. An institution’s exemption from collecting data in 2022 does not affect its responsibility to report the data it was required to collect in 2021. The adjustment was effective January 1, 2022. A review of the HMDA exemption threshold is mandated by provisions of the Economic Growth and Regulatory Paperwork Reduction Act of 1996. The adjustment reflects changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers for the 12-month period ending in November 2021. Full-Text PDF The foregoing Compliance Update is for informational purposes only, and does not constitute legal advice. As a reminder, the NBA general counsel is the attorney for the Nebraska Bankers Association, not its member banks. The general counsel is available to assist members with finding resources to help answer their questions. However, for specific legal advice about specific situations, members must consult and retain their own attorney.
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