Pub 15 2020-2021 Issue 2

The COVID-19 pandemic has changed American life as we know it. As the country continues to deal with the health crisis, the effects of containment measures ripple through the American economy. Unemployment remains high as state economies expand and contract in inverse proportion to the virus’s spread. Regulators are in an arms race with rapidly changing markets, forcing banks to adapt to an ever-changing regulatory landscape. Even as we struggle to deal with the immediate concerns, we know the effects of this pandemic will be with us for some time. Economic shocks will continue to reverberate and play out in the housing markets around the country. As we shift into the next phase of operating in the pandemic and consider what options exist to help struggling mortgage borrowers, we should take note of the status of the expansive mortgagor protections passed by Congress, federal agencies, and other government authorities.

Becoming a Coach
If you’ve ever volunteered to coach youth sports — especially T-ball — you’ve probably learned as much as the kids about how to teach and train someone to perform an activity. The first lesson of coaching: it involves repetition. When I helped coach T-ball, our first day of practice involved running to first base over and over and coaching kids to listen to the first base coach. We spent a lot of time on the fundamentals and basics of baseball. When all is said and done, the purpose of T-ball is to provide the kids with a basic knowledge of the game and awareness of what to do when the ball is hit.

In times of economic stress, farmers sometimes sell their crops or livestock without paying their lenders. One of the tools lenders have for protecting their security interest in farm products is to comply with the Food Security Act of 1985 (the FSA) and, in a central filing state such as Nebraska, to file an effective financing statement (EFS) with the Secretary of State. This article will discuss the FSA’s impact on Nebraska lenders’ security interests in farm products, the filing requirements of an EFS, and select cases.

Lender Liability is when a lender is alleged to have
violated a duty of good faith and fair dealing owed to the borrower. Approximately 40% of directors and officers (D&O) policy claims paid fall under the lender liability insuring agreement of the policy. Almost half lender liability paid claims are brought forth by commercial borrowers because of the complexity of commercial lending. Most lender liability complaints are filed against the bank entity, but individuals can also be named.

2020 will certainly be remembered as the year COVID-19 changed the world as we know it. Likewise, the associated “Lockdown Recession” is already changing the way many banks manage their balance sheets. With loan demand dropping in most parts of the country and stimulus deposits adding to already bloated cash positions, proactive strategic planning has never been more crucial. More to the point, proper liquidity management may offer some of the additional margin and income banks desperately need.

Is racism baked into our nation’s systems of justice, health and education, or are there disproportionate correlations between race, poverty and crime? Are people too quick to accuse others of racism, or are those in positions of power too slow to recognize their role in perpetuating racial inequities? Is it fair that I posed these as either/or questions, or is all of the above true?

I look back on the past few months and wonder what happened to the spring and summer of 2020. Despite the many personal and professional challenges experienced during the COVID-19 pandemic, I have been spending some time each day in my office or at home trying to wrap my brain around lessons we have or