Pub. 6 2015 Issue 4

www.wvbankers.org 4 West Virginia Banker 24 8 © 2015 West Virginia Bankers Association The newsLINK Group, LLC. All rights reserved. West Virginia Banker is published four times each year by The newsLINK Group, LLC for the West Virginia Bankers As- sociation and is the official publication for this association. The information contained in this publication is intended to provide general information for review and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the West Virginia Bankers Association, its board of directors, or the publisher. Likewise, the appear- ance of advertisements within this publication does not constitute an endorsement or recommendation of any product or serviced advertised. West Virginia Banker is a collective work and as such some articles are submitted by authors that are independent of the West Virginia Bankers Association. While West Virginia Banker encourages a first print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at: 855-747-4003. 6 Looking Forward to Helping WVBA Move Forward I would like to take the opportunity to thank the Association Board of Directors for selecting me to help lead the WVBA forward. By Sally Cline, Executive Vice President, WVBA 8 Municipal Bonds and Penion Liabilities Municipal bonds are a key component of most bank investment portfolios. By Dana Sparkman, Vice President/Municipal Analyst, The Baker Group 10 Chapter 7 Debtors Cannot Strip Junior Liens A second mortgage is a “junior lien” because, in the event of a foreclosure, the debt owed on a second mortgage can be collected only after the debt owed on a first mortgage has been satisfied. By Julia A. Chincheck and Daniel J. Cohn, Bowles Rice LLP 12 The Unintended Consequence of the CFPB’s Pre- Foreclosure Rule Among the amendments is a new requirement that all mortgage servicers refrain from making a “first notice or filing” required to foreclose until a borrower is at least 120 days delinquent. By Kevin R. Waldo and Charles D. Dunbar, Jackson Kelly 14 Unauthorized Transfers Present Growing Risks for Commercial Accounts Banks and other financial institutions must heed the warnings of recent cases addressing the issue, as well as the statutory framework that explains who is responsible for resulting losses. By R. Scott Adams, Spillman, Thomas and Battle 18 Pentegra’s Building a Better 401(k)—Part I Retirement savings can indeed be bewildering – and, perhaps, frightening for some – but to suggest that it’s outlived its usefulness is frankly absurd. By Mark Hogan, Regional Director, Pentegra 20 Homeowner’s Association Liens HOAs can take assessment liens on a homeowner’s property if the homeowner stops paying her monthly fees. Usually, these liens are considered junior to mortgage liens which were recorded prior to the HOA assessments becoming past due. By David Thomas and Kelsey Jonas 23 Calendar of Events 24 Does Your Financial Institution Need an Employee Benefit Plan Audit? The most common misconception while determining if your institution needs an audit is that the requirement is based on the number of plan participants and not the number of eligible plan participants By Susan A. Barber, CPA, CGMA Partner, Arnett Carbis Toothman LLP 26 Integrated CRMs Boost Profitability Through Innovation, Agility, Collaboration Community banks have a dilemma. Under significant market pressure to boost profitability, they need growth. By Shanda Purcell , Customer Relationship Management, CSI 28 Earning CRA Credit is Easy When You Partner with the Senior Housing Crime Prevention Foundation Bankers are finding it more difficult to find high quality, lowrisk CRA community development loans, investments or grants. of 2015.