2012-11-14T20:05:58-06:00 2011-12-31 521855942 TATE AND TRYON 2021 L STREET NW SUITE 400 WASHINGTON DC 20036 990 2011-01-01 522080072 CONFERENCE OF STATE BANK SUPERVISORS INC CONF 2022962840 1129 20TH STREET NW NO 900 WASHINGTON DC 20036 THOMAS E HARLOW 2022962840 2012-11-14 1 BRIAN G FUNK P01213459 2022932200 2011 2016-02-24 21:20:13Z CSBS JOHN W RYAN 1129 20TH STREET NW NO 900 WASHINGTON DC 20036 82714163 0 X WWW.CSBS.ORG X 1996 DC TO SUPPORT THE LEADERSHIP ROLE OF STATE BANKING SUPERVISORS IN ADVANCING THE STATE BANKING SYSTEM; ENHANCING CONSUMER PROTECTION; ENSURING SAFETY AND SOUNDNESS; PROMOTING ECONOMIC GROWTH; AND FOSTERING INNOVATIVE STATE REGULATION OF THE FINANCIAL SERVICES INDUSTRY. 20 20 67 20 0 0 0 0 72233955 81792909 33858 -15317 331777 893727 72599590 82671319 511000 1911000 0 0 6762235 7056602 0 0 80658 48652149 51368268 55925384 60335870 16674206 22335449 37661063 59545327 16763546 17612361 20897517 41932966 X THE MISSION OF THE CONFERENCE OF STATE BANK SUPERVISORS (CSBS) IS TO SUPPORT THE LEADERSHIP ROLE OF STATE BANKING SUPERVISORS IN ADVANCING THE STATE BANKING SYSTEM AND STATE FINANCIAL REGULATION AND BENEFIT THE PUBLIC BY ENSURING SAFETY AND SOUNDNESS, PROMOTING ECONOMIC GROWTH AND CONSUMER PROTECTION, AND FOSTERING INNOVATIVE STATE REGULATION OF THE FINANCIAL SERVICES INDUSTRY.THE STATE BANKING DEPARTMENTS REGULATE VARIOUS TYPES OF FINANCIAL ACTIVITY WITHIN THEIR JURISDICTIONS, INCLUDING INSURED DEPOSITORY INSTITUTIONS SUCH AS BANKS, CREDIT UNIONS AND THRIFTS, MORTGAGE LENDERS, CONSUMER FINANCE LENDERS, PAYDAY LENDERS, CHECKER CASHERS, AND MONEY SERVICES BUSINESSES. 0 0 52714981 0 76782646 THE LARGEST PROGRAM IS THE ONGOING OPERATION OF THE NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY (NMLS). NMLS IS A WEB-BASED SYSTEM THAT ALLOWS STATE-LICENSED NON-DEPOSITORY COMPANIES, BRANCHES, AND INDIVIDUALS IN THE MORTGAGE, CONSUMER LENDING, MONEY SERVICES BUSINESSES, AND DEBT COLLECTION INDUSTRIES TO APPLY FOR, AMEND, UPDATE, OR RENEW A LICENSE ONLINE FOR ALL PARTICIPATING STATE AGENCIES USING A SINGLE SET OF UNIFORM APPLICATIONS. MORTGAGE LOAN ORIGINATORS EMPLOYED BY INSURED DEPOSITORY INSTITUTIONS ARE ALSO REGISTERED THROUGH NMLS. NMLS BRINGS GREATER UNIFORMITY AND TRANSPARENCY TO THESE NON-DEPOSITORY FINANCIAL SERVICES INDUSTRIES WHILE MAINTAINING AND STRENGTHENING THE ABILITY OF STATE REGULATORS TO MONITOR THESE INDUSTRIES AND PROTECT THEIR CITIZENS. NMLS BEGAN OPERATIONS ON JANUARY 2, 2008.THE STATE REGULATORY REGISTRY LLC (SRR), A WHOLLY OWNED SUBSIDIARY OF CSBS, OPERATES NMLS ON BEHALF OF STATE REGULATORS. CSBS, IN COOPERATION WITH THE AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS, ESTABLISHED SRR IN SEPTEMBER 2006.THE SECURE AND FAIR ENFORCEMENT OF MORTGAGE LICENSING ACT OF 2008 (THE SAFE ACT) INTRODUCED REQUIREMENTS FOR MORTGAGE LICENSEES, SUCH AS CRIMINAL BACKGROUND CHECKS, A CREDIT HISTORY REVIEW, PRE-LICENSURE EDUCATION REQUIREMENTS, AND BOTH A NATIONAL AND STATE-SPECIFIC TEST COMPONENTS EACH APPLICANT MUST PASS TO OBTAIN A LICENSE. IN 2011, ADDITIONAL FUNCTIONALITY WAS ADDED TO NMLS TO IMPLEMENT THE REMAINING MANDATES CONTAINED IN THE SAFE ACT, INCLUDING:--> THE REGISTRATION THROUGH NMLS OF ALL MORTGAGE LOAN ORIGINATORS AFFILIATED WITH AN INSURED DEPOSITORY INSTITUTION. REGISTRATION OF THESE INDIVIDUALS WAS COMPLETED ON JULY 29, 2011.--> THE DEVELOPMENT OF THE NMLS MORTGAGE CALL REPORT, REQUIRING MORTGAGE LICENSEES TO SUBMIT INFORMATION REPORTS CONTAINING QUARTERLY FINANCIAL AND ORIGINATION DATE THROUGH NMLS.--> THE ABILITY FOR STATE REGULATORS TO ENTER INTO AN NMLS RECORD ANY PUBLIC ENFORCEMENT ACTIONS TAKEN AGAINST MORTGAGE COMPANIES AND MORTGAGE LOAN ORIGINATORS (MLOS) IN NMLS. STATES BEGAN ENTERING THIS INFORMATION IN OCTOBER 2011.MAJOR MILESTONES ACHIEVED BY THE STATES, SRR, AND NMLS DURING 2011 INCLUDE:--> THE NMLS FEDERAL REGISTRY BECAME FULLY OPERATIONAL ON JANUARY 31, 2011, AND BY YEAR-END CONTAINED REGISTRATIONS FOR 11,081 INSTITUTIONS AND 375,654 REGISTERED MLOS.--> MAJOR FUNCTIONALITY WAS ADDED TO NMLS, INCLUDING THE SUBMISSION OF QUARTERLY MORTGAGE CALL REPORTS, ABILITY FOR STATE REGULATORS TO POST PUBLIC REGULATORY ACTIONS IN NMLS, CREDIT CHECK CAPABILITY FOR CONTROL PERSONS, QUALIFYING INDIVIDUALS AND BRANCH MANAGERS, AND THE ABILITY TO REQUIRE THE COMPLETION OF TESTING AND EDUCATION REQUIREMENTS PRIOR TO SUBMISSION OF A LICENSE APPLICATION.--> NMLS ADMINISTERED MORE THAN 130,000 TESTS (NATIONAL AND STATE TEST COMPONENTS) IN 2011, BRINGING THE TOTAL ADMINISTERED SINCE JULY 2009 TO MORE THAN 525,000 TESTS.--> NMLS CONTINUED TO MANAGE EXISTING AND APPROVE NEW COURSE PROVIDERS. BY THE END OF 2011, 170 COURSE PROVIDERS AND 1,200 PRE-LICENSURE AND CONTINUING EDUCATION COURSES WERE APPROVED BY NMLS, AND CLOSE TO 1.5 MILLION HOURS OF EDUCATION WERE DELIVERED THROUGH NMLS-APPROVED COURSES.--> THE MORTGAGE TESTING AND EDUCATION BOARD (MTEB) CONDUCTED NUMEROUS INVESTIGATIONS CONCERNING MLO TESTING AND EDUCATION MATTERS AND COURSES AND PROVIDERS, AND THE GROUNDWORK FOR THE DEVELOPMENT OF A UNIFORM STATE TEST COMPONENT WAS COMPLETED.--> SRR HELD TWO PUBLIC INDUSTRY MEETINGS WITH THE NMLS OMBUDSMAN.--> NMLS MANAGED 152,903 UNIQUE ENTITIES (COMPANIES, BRANCHES AND MLOS) WHICH HELD 288,170 STATE LICENSES FROM THE 58 PARTICIPATING STATE AGENCIES.--> FIVE STATE MORTGAGE REGULATORY AGENCIES RECEIVED CERTIFICATES OF ACCREDITATION BY THE CSBS/AARMR MORTGAGE ACCREDITATION PROGRAM. SUCH AGENCIES ARE CONSIDERED COMPLIANT WITH THE SAFE ACT SUPERVISORY PERFORMANCE STANDARDS UNDER THE FINAL SAFE ACT RULE.--> NMLS COLLECTED AND DISBURSED APPROXIMATELY $71 MILLION IN STATE LICENSE AND REGISTRATION FEES.--> NMLS CALL CENTER ANSWERED MORE THAN 936,000 INQUIRIES FROM USERS.--> NMLS RESOURCE CENTER WAS VIEWED BY OVER 2 MILLION UNIQUE VISITORS.--> NMLS CONSUMER ACCESS RECEIVED OVER 1 MILLION VISITORS WHO VIEWED OVER 56 MILLION PAGES OF INFORMATION ON LICENSED AND REGISTERED COMPANIES AND INDIVIDUALS.--> SRR CONDUCTED MORE THAN 76 LIVE INDUSTRY AND REGULATOR USER TRAINING SESSIONS, INSTRUCTING MORE THAN 11,638 PROFESSIONALS.--> NMLS PROCESSING FEES REMAIN UNCHANGED FOR THE FOURTH STRAIGHT YEAR OF SYSTEM OPERATIONS. 1674045 0 12175 REGULATORY SERVICES - IN 2011, CSBS SPLIT THE REGULATORY FUNCTION INTO THE BANK SUPERVISION SECTION AND THE CONSUMER PROTECTION AND NON-DEPOSITORY SUPERVISION SECTION. THIS RECOGNIZES THE EXPANDED WORK CSBS IS DOING WITH AND ON BEHALF OF STATE REGULATORS, AS WELL AS THE WORKFLOW COMING FROM THE FEDERAL AGENCIES.THE BANK SUPERVISION SECTION WORKS CLOSELY WITH THE STATE BANKING DEPARTMENTS TO IMPLEMENT NEW SUPERVISORY PROCESSES, DEVELOP AND IMPROVE BEST PRACTICES, AND MAINTAIN EXAMINATION TOOLS. EQUALLY IMPORTANT IS THE SECTION'S DEDICATION TO FOSTERING BETTER STATE-FEDERAL AND STATE-STATE COLLABORATION AND COORDINATION.THE ROLE OF CSBS IN SUPPORT OF MONEY SERVICES BUSINESSES AND BANK SECRECY ACT (BSA) SUPERVISION EXPANDED IN 2011 AS THE CSBS BOARD OF DIRECTORS DEDICATED REGULATOR AND STAFF RESOURCES DIRECTLY TO THESE AREAS. RECOGNIZING INCREASING DEMANDS IN NON-DEPOSITORY SUPERVISION, CSBS FORMED THE CONSUMER PROTECTION AND NON-DEPOSITORY SUPERVISORY SECTION. THIS SECTION HAS RESPONSIBILITY FOR NON-DEPOSITORIES (INCLUDING MORTGAGE AND MONEY SERVICES BUSINESSES), THE BANK SECRECY ACT, CONSUMER PROTECTION, AND COORDINATION BETWEEN STATE REGULATORS AND THE CONSUMER FINANCIAL PROTECTION BUREAU. 739558 0 22459 LEGISLATIVE SERVICES - DURING 2011, MAJOR WORK STREAMS FOCUSED ON THE ONGOING RAMIFICATIONS OF THE FINANCIAL CRISIS, INCLUDING THE IMPLEMENTATION OF THE DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT OF 2010. CSBS STAFF HAS WORKED TO ANALYZE AND PROVIDE THE STATE PERSPECTIVE ON FEDERAL REGULATORY POLICY PROPOSALS THAT DIRECTLY AFFECT STATE-SUPERVISED ENTITIES. ALSO, CSBS STAFF FACILITATES STATE REPRESENTATION ON THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL (FFIEC) AND COORDINATES EFFORTS AMONG THE STATE BANKING DEPARTMENTS ON SUPERVISORY RELATED ISSUES.THROUGH REGULAR INTERACTIONS WITH CONGRESS, REGULATORY AGENCIES, AND OTHER ORGANIZATIONS CONCERNED WITH FINANCIAL SERVICES POLICY, CSBS'S LEGISLATIVE AND LEGAL SECTION MONITORS LEGAL AND LEGISLATIVE DEVELOPMENTS TO IDENTIFY POLICY PROPOSALS AND LEGAL ISSUES POTENTIALLY AFFECTING STATE BANK SUPERVISION AND STATE FINANCIAL REGULATION. 437574 0 4980429 MEMBERSHIP SERVICES & COMMUNICATIONS - CSBS'S ANNUAL STATE-FEDERAL SUPERVISORY SYMPOSIUM (SFSF), WHICH WAS HELD IN SEATTLE, WA IN MAY 2011, PROVIDED A FORUM FOR STATE AND FEDERAL FINANCIAL REGULATORS TO DISCUSS REGULATORY AND LEGISLATIVE POLICY ISSUES FACING FINANCIAL REGULATORS AND THE FINANCIAL SYSTEM AS A WHOLE. THE SFSF PROVIDED ALL ATTENDEES AN OPPORTUNITY TO ENGAGE IN FRANK DIALOGUE ON THE CHALLENGES AND OPPORTUNITIES FACING STATE AND FEDERAL REGULATORS ALIKE. THE 2011 SFSF WAS ATTENDED BY 78 STATE REGULATORS FROM 35 STATES AS WELL AS 58 FEDERAL REGULATORS REPRESENTING FOUR FEDERAL AGENCIES, INCLUDING THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE SYSTEM, THE FINANCIAL CRIMES ENFORCEMENT NETWORK, AND THE OFFICE OF THE COMPTROLLER OF THE CURRENCY.OTHER ACTIVITIES OF THE MEMBERSHIP AND COMMUNICATIONS DIVISION INCLUDED THE BANKERS BRIEFING IN WASHINGTON, DC, ADMINISTERING ACTIVITIES OF THE BANKERS ADVISORY BOARD, PRODUCING THE CSBS EXAMINER (A WEEKLY NEWSLETTER), THE SUPERVISORY DIRECTORY, AND UPDATING/MAINTAINING THE CSBS WEBSITE. 1911000 1911000 0 BOTH CSBS AND ITS WHOLLY OWNED SUBSIDIARY STATE REGULATORY REGISTRY LLC (SRR) PROVIDE ANNUAL OPERATING SUPPORT TO THE EDUCATION FOUNDATION OF STATE BANK SUPERVISORS (EFSBS), A RELATED 501(C)(3) EDUCATIONAL FOUNDATION, TO ASSIST EFSBS IN CARRYING OUT ITS MISSION. IN ADDITION, IN DECEMBER 2011, SRR APPROVED A $1 MILLION GRANT TO EFSBS IN ORDER TO SUPPORT THE DEVELOPMENT OF A NEW ONLINE TRAINING PLATFORM. 2348574 1911000 4980429 57477158 1 0 0 1 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 1 37 0 1 67 1 0 0 0 0 1 1 0 0 0 0 0 X 20 20 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X THE ORGANIZATION 2022962840 1129 20TH STREET NW NO 900 WASHINGTON DC 20036 X JOHN P DUCREST 3.00 X X 0 0 0 WILLIAM S HARAF 3.00 X X 0 0 0 GREG GONZALES 3.00 X X 0 0 0 CANDACE A FRANKS 3.00 X X 0 0 0 CHARLES A VICE 3.00 X X 0 0 0 JOSEPH A SMITH JR 3.00 X X 0 0 0 SCOTT D CLARKE 3.00 X 0 0 0 JEFFREY C VOGEL 3.00 X 0 0 0 GAVIN M GEE 3.00 X 0 0 0 DAVID J COTNEY 3.00 X 0 0 0 JAMES M SCHIPPER 3.00 X 0 0 0 CHARLES G COOPER 3.00 X 0 0 0 MARK KAUFMAN 3.00 X 0 0 0 VAUGHN M NORING 3.00 X 0 0 0 J THOMAS CARDWELL 3.00 X 0 0 0 HOWARD F PITKIN 3.00 X 0 0 0 LLOYD P LAFOUNTAIN III 3.00 X 0 0 0 DAVID H MILLS 3.00 X 0 0 0 JOHN D HARRISON 3.00 X 0 0 0 ROBERT J ENTRINGER 3.00 X 0 0 0 DAVID C TATMAN 3.00 X 0 0 0 SCOTT JARVIS 3.00 X 0 0 0 LAUREN KINGRY 3.00 X 0 0 0 ARTHUR NEIL MILNER 37.50 X 538233 59803 59641 JOHN RYAN 37.50 X 406011 0 40434 THOMAS HARLOW 37.50 X 231539 25727 41907 MICHAEL STEVENS 37.50 X 287907 31990 47282 WILLIAM MATTHEWS 37.50 X 286007 0 45625 JOHN GORMAN 37.50 X 278458 0 47700 MARGARET LIU 37.50 X 256150 0 39339 BARBARA MICHELS 37.50 X 226129 0 35617 TIMOTHY DOYLE 37.50 X 222886 0 38090 CHARLES CROSS 37.50 X 127475 84983 44640 MARY BETH QUIST 37.50 X 172749 19194 35134 JOHN PRENDERGAST 37.50 X 196241 0 16889 PETER MARKS 37.50 X 160674 0 36746 VICKIE SLATER 37.50 X 130466 0 22803 ANTHONY DONFOR III 37.50 X 115673 12853 20806 MARY PFAFF 37.50 X 117826 0 27920 TIMOTHY LANGE 37.50 X 122390 0 12480 EDWARD SMITH III 37.50 X 113572 0 25295 3990386 234550 638348 29 0 1 0 FINANCIAL INDUSTRY REGULATORY AUTHORITY 9509 KEY WEST AVE ROCKVILLE MD 20850 DEVELOPMENT/HOSTING OF NMLS 31884198 FEDERAL BUREAU OF INVESTIGATION CJIS DI 1000 CUSTER HOLLOW RD CLARKSBURG WV 26306 NMLS CRIMINAL BACKGROUND CHECKS 8907607 FIELDPRINT 400 LIPPINCOTT DR SUITE 114 MARLTON NJ 08053 NMLS FINGERPRINTING SERVICES 7248592 TRANSUNION RENTAL SCREENING 13591 COLLECTIONS CENTER DR CHICAGO IL 60693 NMLS CREDIT REPORTING SERVICE 1041342 TMT DEMONET PO BOX 13606 NEWARK NJ 07188 LANDLORD OF OFFICE SPACE 532946 13 NMLS PROCESSING FEES 518210 63286189 63286189 MLO TESTING/EDUCATION 900099 13496556 13496556 MEMBERSHIP DUES/ASSESS 900099 4852651 4852651 SFSF & ANNUAL MEETING 900099 127778 127778 EVENTS/SUMMITS 900099 22360 22360 7375 7375 81792909 26235 26235 854454 854454 1292 42844 -41552 -41552 -41552 MANAGEMENT FEES 561000 24000 24000 MISCELLANEOUS 900099 15273 4800 10473 39273 82671319 81797709 0 873610 1911000 1911000 3915602 3369963 545639 2712491 2106265 576226 30000 -158476 -158476 159554 569863 -410309 427431 427431 239164 154631 84533 103111 45 103066 471261 271293 199968 19155 2513 16642 344458 126646 188393 29419 16590284 15448198 1142086 1128527 894057 234470 464214 283090 180979 145 165229 100792 64437 279576 175542 103534 500 -16853 -16853 4483464 4100501 382963 65976 65976 FINGERPRINT PROCESSING 14790000 14790000 MLO TESTING FEES 7267091 7267091 BANK CHARGES 2690873 2627399 63474 MLO EDUC COURSE FEES 1545649 1545649 737089 1732620 -1016125 20594 60335870 57477158 2778054 80658 177174 40850 12507280 29696469 1879991 1853164 585725 483953 34574107 11152422 19829246 23421685 1225874 1251373 1455773 2797833 37661063 59545327 9953257 7942059 2326313 4253749 19063 4464913 5416553 16763546 17612361 X 20897517 41932966 20897517 41932966 37661063 59545327 X 22335449 -1300000 X X 0 1 1 X 0 X 4852651 4852651 76945058 76945058 81797709 81797709 0 11337261 11337261 11337261 11337261 70460448 880689 880689 880689 880689 34473 34473 82712871 82712871 X SCHEDULE A, PART II, LINE 12, EXPLANATION OF OTHER INCOME: INCOME FROM AN ACTIVITY THAT IS NOT REGULARLY CARRIED ON MANAGEMENT FEES 0 1 0 1 55 0 0 1 64547 0 0 64602 0 PART IV, SUPPLEMENTAL INFORMATION: PART II-B, LINES 1(B) & 1(G): CERTAIN STAFF OF THE ORGANIZATION PERIODICALLY MEET WITH, OR HAVE PHONE CONVERSATIONS WITH, MEMBERS OF CONGRESS ABOUT LEGISLATIVE ISSUES IMPACTING THE STATE BANKING INDUSTRY. PART II-B, LINE 1(D): THE ORGANIZATION ALSO SENDS ITS MEMBERS OCCASIONAL LEGISLATIVE ISSUE COMMUNICATIONS. PART III: THE ORGANIZATION WAS PREVIOUSLY EXEMPT UNDER SECTION 501(C)(6) OF THE IRC; HOWEVER, DURING 2012, THE IRS RETROACTIVELY APPROVED THE ORGANIZATION'S REQUEST FOR TREATMENT AS A 501(C)(3) ORGANIZATION, WITH AN EFFECTIVE DATE OF MARCH 25, 2011. AS SUCH, THE INFORMATION REPORTED ABOVE IN PART II-B REFLECTS CSBS' LOBBYING ACTIVITY FROM 3/26 - 12/31/11. AS WAS DONE IN PREVIOUS YEARS, CSBS HAS ELECTED TO PAY PROXY TAX ON ITS LOBBYING EXPENDITURES FROM 1/1 - 3/25/11 (THE PORTION OF 2011 THE ORGANIZATION WAS STILL A 501(C)(6) ORGANIZATION). RATHER THAN COMPLETING PART III (SINCE IT IS CURRENTLY A 501(C)(3) ORGANIZATION), CSBS HAS PRESENTED ITS PROXY TAX CALCULATION AS AN ATTACHMENT TO ITS 2011 FORM 990-T. 1 2916563 144673228 143166241 4423550 0 1548831 378406 1170425 924802 741137 183665 32100474 10032879 22067595 23421685 ACCRUED PENSION COST 1832809 DAY WITH THE COMMISSIONER 61239 DEFERRED COMPENSATION LIABILITY 481429 DUE TO RELATED ORGANIZATION 3039473 FUNDS HELD FOR OTHERS 1603 5416553 82671319 60335870 22335449 -1300000 -1300000 21035449 82712871 0 82712871 -41552 -41552 82671319 61677422 1341552 1341552 60335870 0 60335870 PART IV, LINE 1B: WE ARE A TEMPORARY CUSTODIAN OF FUNDS COLLECTED FROM MORTGAGE LICENSEES WHO USE THE NATIONWIDE MORTGAGE LICENSING SYSTEM AND REGISTRY. THESE FUNDS ARE NOT RECORDED ON OUR BALANCE SHEET. WE HOLD THE FUNDS IN A BANKING/SWEEP ACCOUNT FOR APPROXIMATELY EIGHT BUSINESS DAYS IN ORDER TO ASSURE THAT FUNDS COLLECTED THROUGH ACH AND CREDIT CARD CHARGES HAVE TIME TO CLEAR THE BANKING SYSTEM; THEN WE REMIT THE COLLECTED FUNDS TO THE APPROPRIATE STATES AND TRANSFER THE PORTION BELONGING TO SRR AS A PROCESSING FEE TO OUR OWN OPERATING ACCOUNT. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN, AND THEREFORE, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. MANAGEMENT CONSIDERS THE YEARS FROM 2008 THROUGH 2011 TO BE OPEN FOR EXAMINATION BY TAXING AUTHORITIES. PART XI, LINE 8 - OTHER ADJUSTMENTS: LITIGATION CONTINGENCY ACCRUAL -1,300,000. PART XII, LINE 4B - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF ASSETS -41,552. PART XIII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON DISPOSAL OF ASSETS 41,552. LITIGATION CONTINGENCY ACCRUAL 1,300,000. 1 EDUCATION FOUNDATION OF STATE BANK SUPERVISORS 1129 20TH STREET NW 9TH FLOOR WASHINGTON DC 20036 521347951 501(C)(3) 1911000 0 SUPPORTS THE EDUCATION AND TRAINING OF STATE BANK AND MORTGAGE REGULATORS 1 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: CSBS AND SRR PROVIDE PERIODIC SUPPORT TO THE EDUCATION FOUNDATION OF STATE BANK SUPERVISORS (EFSBS), AS EFSBS SERVES AS THE EDUCATIONAL ARM OF CSBS. THE GOVERNING BOARD OF CSBS RECEIVES PERIODIC UPDATES ON THE PROGRAM ACCOMPLISHMENTS OF THE EFSBS. IN ADDITION, DURING 2011 THE SRR BOARD OF MANAGERS APPROVED PROVIDING A $1 MILLION GRANT TO EFSBS TO BE USED FOR EDUCATIONAL PROGRAM DEVELOPMENT. X X X 1 1 X X X X 0 0 0 0 0 0 0 0 0 ARTHUR NEIL MILNER 438682 48742 54000 6000 45551 5061 42930 4770 18064 2007 599227 66580 0 0 JOHN RYAN 345324 0 54000 0 6687 0 34450 0 10318 0 450779 0 0 0 THOMAS HARLOW 197639 21960 31500 3500 2400 267 22516 2502 17523 1947 271578 30176 0 0 MICHAEL STEVENS 226986 25221 58500 6500 2421 269 27541 3060 15605 1734 331053 36784 0 0 WILLIAM MATTHEWS 241624 0 40000 0 4383 0 28736 0 16889 0 331632 0 0 0 JOHN GORMAN 236598 0 33000 0 8860 0 47700 0 253 0 326411 0 0 0 MARGARET LIU 213160 0 40000 0 2990 0 22450 0 22574 0 301174 0 0 0 BARBARA MICHELS 202279 0 21000 0 2850 0 24498 0 12818 0 263445 0 0 0 TIMOTHY DOYLE 187532 0 32000 0 3354 0 23220 0 14985 0 261091 0 0 0 CHARLES CROSS 106265 70843 19200 12800 2010 1340 16650 11100 10260 6840 154385 102923 0 0 MARY BETH QUIST 150527 16725 19800 2200 2422 269 16420 1824 21594 2399 210763 23417 0 0 JOHN PRENDERGAST 174922 0 19000 0 2319 0 0 0 17049 0 213290 0 0 0 PETER MARKS 127720 0 25000 0 7954 0 19856 0 20244 0 200774 0 0 0 VICKIE SLATER 113046 0 15000 0 2420 0 11939 0 11111 0 153516 0 0 0 ANTHONY DONFOR III 103320 11480 10800 1200 1553 173 18725 2081 3677 409 138075 15343 0 0 PART I, LINE 1A THE WRITTEN EMPLOYMENT CONTRACT THE CONFERENCE HAS WITH ITS OUTGOING PRESIDENT AND CEO INCLUDES, AMONGST OTHER THINGS, PROVISIONS FOR A GROSS-UP ON HIS POTENTIAL ANNUAL BONUS TO COMPENSATE FOR INCOME TAXES, AN ALLOWANCE FOR SPOUSAL TRAVEL ON BUSINESS-RELATED TRIPS UP TO AN ANNUAL MAXIMUM OF $5,000, AND AN ANNUAL MEMBERSHIP IN A GOLF CLUB. DURING 2011, THE OUTGOING PRESIDENT AND CEO RECEIVED AS TAXABLE COMPENSATION (1) A GROSS-UP PAYMENT OF $3,731, (2) $4,553 FOR SPOUSAL TRAVEL EXPENSES, AND (3) $5,040 FOR CLUB MEMBERSHIP FEES. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE IS EMPOWERED TO ACT IN LIEU OF THE BOARD OF DIRECTORS BETWEEN SCHEDULED BOARD MEETINGS; HOWEVER, ALL ACTIONS TAKEN BY THE EXECUTIVE COMMITTEE MUST BE APPROVED BY THE BOARD OF DIRECTORS AT ITS NEXT SCHEDULED MEETING, AND THE EXECUTIVE COMMITTEE IS NOT EMPOWERED TO APPROVE SALARY CHANGES OR NON-BUDGETED EXPENSES ABOVE $5,000. THE EXECUTIVE COMMITTEE CONSISTS OF ALL SITTING OFFICERS OF THE BOARD OF DIRECTORS AS WELL AS THE IMMEDIATE PAST CHAIRMAN. FORM 990, PART VI, SECTION A, LINE 4 CSBS RECEIVED A DETERMINATION LETTER FROM THE IRS DATED MAY 15, 2012, WHICH APPROVED CSBS'S APPLICATION TO CHANGE ITS TAX EXEMPT STATUS FROM IRC SECTION 501(C)(6) TO SECTION 501(C)(3). FURTHERMORE, THE IRS DETERMINED THAT CSBS IS ELIGIBLE TO RECEIVE TAX-DEDUCTIBLE CONTRIBUTIONS AS A PUBLIC CHARITY UNDER SECTION 509(A)(2). THE EFFECTIVE DATE OF THIS CHANGE IN EXEMPTION WAS MARCH 25, 2011. AS SUCH, THIS 2011 RETURN IS THE FIRST YEAR THAT CSBS IS FILING AS A 501(C)(3) ORGANIZATION. HOWEVER, AS CSBS WAS STILL A 501(C)(6) ORGANIZATION DURING THE FIRST THREE MONTHS OF ITS 2011 TAX YEAR, CERTAIN NON-501(C)(3) QUESTIONS ON THE 990 HAVE BEEN ANSWERED AS WELL. FORM 990, PART VI, SECTION A, LINE 6 REGULAR VOTING MEMBERSHIP IN THE CONFERENCE IS LIMITED TO THE STATE OFFICER HAVING RESPONSIBILITY FOR THE SUPERVISION OF STATE-CHARTERED BANKING INSTITUTIONS IN EACH STATE, THE DISTRICT OF COLUMBIA, GUAM, PUERTO RICO, AND THE VIRGIN ISLANDS, OR A REPRESENTATIVE DULY DESIGNATED BY SUCH OFFICER WHO IS ALSO AN EMPLOYEE OF THE STATE BANKING DEPARTMENT OF THAT JURISDICTION. THE CONFERENCE'S OTHER CLASSES OF MEMBERSHIP, WHICH INCLUDE STATE-CHARTERED BANKING INSTITUTIONS, STATE BANKERS ASSOCIATIONS, AND ASSOCIATES, DO NOT HAVE AN OFFICIAL VOTE IN ANY MEETING OF THE CONFERENCE AND ARE NOT ELIGIBLE TO HOLD AN ELECTED OFFICE IN THE CONFERENCE. FORM 990, PART VI, SECTION A, LINE 7A THE OFFICERS OF THE CSBS BOARD OF DIRECTORS, WHICH INCLUDE THE CHAIRMAN, CHAIRMAN-ELECT, VICE CHAIRMAN, SECRETARY, AND TREASURER, ARE ELECTED BY THE REGULAR VOTING MEMBERSHIP AT THE ANNUAL MEETING OF THE CONFERENCE. ADDITIONALLY, THE REGULAR MEMBERS ARE DIVIDED INTO FIVE GEOGRAPHICAL DISTRICTS AND THEY ELECT A DISTRICT CHAIRMAN AND A DISTRICT VICE CHAIRMAN FROM THE REGULAR MEMBERSHIP IN EACH RESPECTIVE DISTRICT TO REPRESENT THE DISTRICT ON THE CSBS BOARD. FORM 990, PART VI, SECTION A, LINE 7B PROPOSALS FOR THE AMENDMENT OR REPEAL OF THE BYLAWS MAY BE MADE BY ANY TEN REGULAR MEMBERS OF THE CONFERENCE BY SUBMITTING A WRITTEN REQUEST SPECIFYING THE CHANGES PROPOSED TO THE CHAIRMAN OF THE BOARD OF DIRECTORS. ALL SUCH PROPOSALS WOULD THEN BE CONSIDERED BY THE MEMBERSHIP AT AN ANNUAL OR SPECIAL MEETING OF THE REGULAR MEMBERS, AND THE BYLAWS COULD BE AMENDED OR REPEALED BY A TWO-THIRDS VOTE OF THE REGULAR MEMBERS OR DULY DESIGNATED REPRESENTATIVES ENROLLED AS ATTENDING THE MEETING. FORM 990, PART VI, SECTION B, LINE 11 THE CONFERENCE'S FORM 990 IS THOROUGHLY REVIEWED BY THE MANAGEMENT TEAM BEFORE THE RETURN IS SIGNED AND FILED. THE CONFERENCE ALSO POSTS THE 990 ON THE BOARD'S WEBSITE AND EMAILS THE MEMBERS OF THE BOARD HOW TO ACCESS IT. FORM 990, PART VI, SECTION B, LINE 12C A REVISED CONFLICT OF INTEREST AND CONFIDENTIALITY POLICY WAS ADOPTED IN MARCH 2010 COVERING CSBS AND ITS AFFILIATED ORGANIZATIONS. AS PART OF THE POLICY, EACH YEAR ALL CSBS EMPLOYEES, MEMBERS OF THE BOARD OF DIRECTORS, AND MEMBERS OF COMMITTEES WITH GOVERNING BOARD DELEGATED POWERS ARE REQUIRED TO SIGN A STATEMENT THAT THEY HAVE READ AND UNDERSTAND THE POLICY AND THAT THEY AGREE TO COMPLY WITH THE POLICY. EACH FORM COMPLETED BY A CSBS EMPLOYEE WILL BE REVIEWED BY THE PRESIDENT AND CEO FOR POTENTIAL CONFLICTS, WHILE EACH FORM COMPLETED BY A MEMBER OF THE BOARD OF DIRECTORS OR COMMITTEE WITH GOVERNING BOARD DELEGATED POWERS WILL BE SUBMITTED TO AND REVIEWED BY THE CSBS AUDIT COMMITTEE FOR POTENTIAL CONFLICTS. FORM 990, PART VI, SECTION B, LINE 15 CSBS HAS A FORMAL POLICY STATING THAT THE PROCESS FOR DETERMINING THE COMPENSATION OF ITS OFFICERS AND KEY EMPLOYEES SHALL INCLUDE (1) REVIEW AND APPROVAL BY THE COMPENSATION COMMITTEE OF CSBS, (2) USE OF DATA AS TO COMPARABLE COMPENSATION, AND (3) CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING. THE PERSONNEL AND COMPENSATION COMMITTEE OF THE CSBS BOARD OF DIRECTORS HAS BEEN ESTABLISHED IN THE BYLAWS AS A STANDING COMMITTEE, WHICH DEFINES THAT THE COMMITTEE'S PURPOSE IS TO RECOMMEND SALARY RANGES AND COMPENSATION FOR CSBS STAFF TO THE BOARD OF DIRECTORS FOR APPROVAL AND TO CONDUCT AN ANNUAL PERFORMANCE APPRAISAL OF THE PRESIDENT. FORM 990, PART VI, SECTION C, LINE 19 CSBS MAKES ITS CONSOLIDATED AUDITED FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC THROUGH ITS WEBSITE. IN ADDITION, CSBS' DISREGARDED ENTITY, STATE REGULATORY REGISTRY LLC, HAS ITS OWN SEPARATE AUDITED FINANCIAL STATEMENTS WHICH ARE AVAILABLE UPON REQUEST. CSBS DOES NOT MAKE ITS GOVERNING DOCUMENTS OR CONFLICT OF INTEREST POLICY PUBLICLY AVAILABLE; HOWEVER, CSBS WOULD CONSIDER ANY REQUESTS RECEIVED FOR SUCH DOCUMENTS. FORM 990, PART VII, SECTION A, LINE 1A: CERTAIN OFFICERS, KEY EMPLOYEES, AND HIGHLY COMPENSATED EMPLOYEES LISTED IN PART VII AND ON SCHEDULE J OF THE RETURN ALSO ARE PARTICIPANTS IN THE CONFERENCE OF STATE BANK SUPERVISORS PENSION PLAN, WHICH IS A QUALIFIED DEFINED BENEFIT PENSION PLAN. EFFECTIVE JULY 1, 2011, THIS PLAN WAS TERMINATED. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: LITIGATION CONTINGENCY ACCRUAL -1,300,000. TOTAL TO FORM 990, PART XI, LINE 5: -1,300,000. FORM 990, PART XII, LINE 2C: THE CONFERENCE'S AUDIT REVIEW PROCESS HAS REMAINED UNCHANGED FROM THE PRIOR YEAR. STATE REGULATORY REGISTRY LLC 1129 20TH STREET NW 9TH FLOOR WASHINGTON DC 20036 205641694 THE DEVELOPMENT AND OPERATION OF THE NATIONWIDE MORTGAGE LICENSING SYSTEM DC 77637673 48497085 CONFERENCE OF STATE BANK SUPERVISORS INC EDUCATION FOUNDATION OF STATE BANK SUPERVISORS 1129 20TH ST NW 9TH FLOOR WASHINGTON DC 20036 521347951 TO ENHANCE STATE FINANCIAL SUPERVISION THROUGH EDUCATION AND TRAINING DC 501(C)(3) LINE 9 COMMON CONTROL WITH CSBS 0 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 EDUCATION FOUNDATION OF STATE BANK SUPERVISORS B 1911000 CASH EDUCATION FOUNDATION OF STATE BANK SUPERVISORS M 347295 ALLOCATION EDUCATION FOUNDATION OF STATE BANK SUPERVISORS N 1302422 ALLOCATION EDUCATION FOUNDATION OF STATE BANK SUPERVISORS P 379393 CASH