This publication is produced and published by Eide Bailly and distributed with the understanding that the information contained does not constitute legal, accounting or other professional advice. It is not intended to be responsive to any individual situation or concerns as the contents of the publication are intended for general informational purposes only. Readers are urged not to act upon the information contained in this publication without first consulting competent legal, accounting or other professional advice regarding implications of a particular factual situation. Questions and information for publication can be submitted to your Eide Bailly representative. MEET RYAN CAPOUCH Ryan is a financial institutions compliance associate and a relative newcomer to Eide Bailly, but he brings a wealth of knowledge and experience to his role. He has more than eight years of experience in banking and accounting, working with financial institutions of varying sizes.

He has significant knowledge of many bank regulations, including Truth in Lending, Truth in Savings, Electronic Funds Transfer Act, the Equal Credit Opportunity Act and more. At Eide Bailly, Ryan works with financial institutions to establish compliance programs and helps monitor bank’s compliance programs on an ongoing basis, as well as provide training. He serves as a resource for bank employees who have regulatory questions or concerns, and assists clients with compliance risk assessments, as well as pre-exam regulatory requests. He also works closely with regulators during on-site examinations and completes ACH audits. “The regulatory landscape is complex and ever-changing.

When I’m able to help banks understand requirements and take a proactive approach to compliance, I feel good knowing I’m not just helping them now, I’m helping them create a successful future.” n To request reprints of this publication, send a written request to ReprintRequest@eidebailly.com. © 2015 Eide Bailly LLP. Effective Date: Sept. 18, 2015 NACHA – Unauthorized Return Rate Threshold & Reinitiation of Entries Description T  he rule will reduce the current return rate threshold for unauthorized debit entries (Return Reason codes R05, R07, R10, R29 and R51) from 1.0 percent to 0.5 percent. The new return rate for ACH debit entries returned due to administrative or account data errors will be 3 percent. The new return rate level for debit entries (excluding RCK entries) that are returned for any reason will be 15 percent. Effective Date: October 1, 2015 T  he rules also address new requirements regarding reinitation of entries. Compliance required by October 3, 2016 An Independent Member Firm of HLB International Regulation Department of Defense – Military Lending Act of 2006 The final rule extends the types of closed-end and open-end consumer credit products covered under the MLA to include those aligned with the definition of credit under Regulation Z and the Truth in Lending Act. The final rule still exempts residential mortgages and vehicle-secured purchase loans.

There is also a temporary exemption for coverage of credit cards until October 3, 2017. The final rule modifies the process for a creditor in determining whether a consumer is a “covered borrower.” T  he rule also modifies the disclosures and implements the MLA enforcement provisions. Regulation H Flood Insurance Effective Date: Managing Editor: Liz Stabenow Send comments to: possibilities@eidebailly.com COMPLIANCE REMINDERS/DUE DATES October 1, 2015 To view this and previous issues of Possibilities, visit www.eidebailly.com/publications Ryan Capouch FI Compliance Associate 605.977.2792 rcapouch@eidebailly.com As set forth in the final rule, a lender may charge a borrower beginning on the date that flood insurance lapsed (or was insufficient), or the date of notification to the borrower, whichever is later. A lender must terminate any force-placed insurance within 30 days of receipt of confirmation of sufficient existing coverage, and must refund to the borrower any premium and related fees charged during the overlapping coverage. Under the final rule, there is an exemption for flood insurance for detached structures that are part of a residential property, but are detached from the primary residential structure and do not serve as a residence. .