A. Eligibility Requirements for a Loan Modification & Troubled Debt Restructure (TDRs)
|
|
- Lisa Dorsey
- 8 years ago
- Views:
Transcription
1 POLICY: L127 This policy governs any changes in original terms, on consumer and business loans including but not limited to real estate loans, that were agreed to at loan approval. Loan modifications and troubled debt re-structures can be any change of original contractual terms including but not limited to payment due date, maturity date, interest rate, or payment amount. All loans 90 days past due will discontinue the accrual of interest, done automatically by the data processing system. Once the loan is current or is paid under 90 days delinquent, the loan interest accrual will automatically start again. The accounting department at Sky FCU does verify and balance the interest accruals every month. Loan workouts can take many forms, including a renewal or extension of loan terms, extension of additional credit, or a restructuring with or without concessions. A renewal or restructuring should improve the lender s prospects for repayment of principal and interest and be consistent with sound banking, supervisory, and accounting practices. Loan workouts will be considered after analyzing a borrower s repayment capacity, evaluating the support provided by guarantors, and assessing the value of the collateral pledged on the debt. Loan workout arrangements will be designed to help ensure that the credit union maximizes its recovery potential. Further, renewed or restructured loans to borrowers who have the ability to repay their debts under reasonable modified terms will not be subject to adverse classification solely because the value of the underlying collateral has declined to an amount that is lessthan the loan balance. A. Eligibility Requirements for a Loan Modification & Troubled Debt Restructure (TDRs) 1) For TDRs: (a) the borrower must demonstrate a legitimate financial hardship i.e., decrease in income/increase in expenses. The reasons for the hardship must be shown in written form by the borrower. (b) the borrower must demonstrate how the debt restructure request will allow them to service the debt on a timely basis going forward. (c) CU grants a concession to the member debtor that it would not otherwise consider. A loan extended or renewed at a stated rate equal to the current interest rate or market rate is not considered a TDR loan. These financial difficulties could be legal or economic. TDRs are always evidenced by an agreement between the parties or are based on terms imposed by a court of law. ( d) Terms modified under troubled debt restructuring could include an increase in term, a reduction in interest or principle. Following would be considered a concession: i. Reduction of the principle amount of debt; ii. Reduction in the amount of accrued interest; iii. Extension of maturity at a favorable interest rate (below market that you would not give any other member) 2) For a loan modification to qualify, the borrower need not have a financial hardship. A loan modification can be any loan where the original terms can be modified. Examples may include:
2 (a) The borrower may want a review of credit score per the Managed Credit Policy and potential lower rate based on credit score improvement per policy. (b) A member s business may be seasonal i.e. a landscaping business in which we may change payments to interest only versus principal and interest as income levels change with the seasons. 3. A loan modification may be a refinance of a delinquent loan. A trial period will be established for delinquent loans to be modified. For example: Delinquent members on consumer loans will be required to demonstrate an ability and willingness to repay under the modified terms for a period of ninety (90) days (three payments at the modified terms) before the loan modification becomes permanent. The Lender will analyze the borrower s overall financial condition, resources and payment record for this modification and trial period of payments. 4. For loan modification purposes, there may be no maximum loan-to-value ratios. 5. The objectives of a residential real estate loan modification or a consumer loan are to help members who are struggling financially to maintain ownership of their homes and or other collateral and to minimize the credit union s default and foreclosure costs. 6. Lowering the monthly payment, sufficiently to make it affordable in the longer term, may result in a more sustainable loan modification. B. Key elements may include, but are not limited to, the following, if the credit union agrees to modify a Consumer loan or grant a TDR: 1) A standard loan evaluation worksheet as well as a loan modification worksheet shall be completed for all loan modifications and TDRs. (a) Updated and comprehensive financial information, documentation/ verification of the borrower and any guarantor, which includes all income and expenses; (b) Current valuations of the collateral supporting the loan and the workout plan; (c) Appraisals will be required on loans $250,000 or more; (d) Analysis and determination of appropriate loan structure (i.e. term and amortization schedule); (e) Appropriate legal documentation for any changes to loan terms (f) Lender will determine and verify the borrower s monthly obligations by obtaining a new credit report and do the appropriate analysis and determination of appropriate loan structure (i.e. term and amortization schedule); (g) Lender will calculate a debt ratio with a target range knowing that these TDRs make it difficult to have a debt ratio that is seen under normal standards. The real emphasis comes in the cash flow and net disposable income. The two will be used interchangeably in order to have a dual evaluation of cash flow instead of a one dimensional ratio that can be limiting. This calculation will help structure the loan modification or TDR in order for the member to afford the new modified payment; (h) The lender will analyze the current financial information of the borrower and/or guarantor that supports the ultimate collection of principal and interest; (i) Lender may pursue a qualified co-borrower or guarantor if feasible. (j) Normally, the lender will do the mortgage modification for a one-year term with the option to go two years or longer with maximum of 5-years, if the situation warrants it, based on the economy or economic factors which dictate the borrower s current financial condition.
3 POLICY: L127 (Cont.) (k) While monitoring the progress of the TDR, as conditions improve, adjustments to the terms of the loan will be made accordingly, over time, to benefit the member and credit union. (2) If extending the term and lowering the interest rate still does not result in a reasonable payment, consideration shall be given to creating a silent second or breaking the loan or loans into two separate loans: a. The first, with the longest term, lowest interest rate and largest portion of the total principal to reach the target debt ratio; b. The second could be a 0% interest rate, zero payment balloon note, with the term matching the length of the modification. The second will be secured by the same collateral and additional collateral if possible. This could be another piece of collateral which is unencumbered, or a second lien (if possible) on another vehicle, a third trust deed on real property or even a UCC-1 on the member s personal property. The additional liens could make the member more inclined to repay. (3) The lender may prohibit cash advances except when required to protect the collateral. (4) Proper monitoring of the ongoing performance of the borrower and guarantor under the terms of the workout plan will be conducted. This will be done through the completed and updated monthly, Modification/TDR Log in addition to coding the modified loans in the data system. C. Key elements may include, but are not limited to, the following, if the credit union agrees to modify a Business loan or grant a TDR: (1) Business Lender will require: a. Updated and comprehensive financial information on the borrower, real estate project, and any guarantor; b. Current valuations of the collateral supporting the loan and the workout plan; c. Analysis and determination of appropriate loan structure (i.e. term and amortization schedule) d. Appropriate legal documentation for any changes to loan terms e. Analysis of the borrower s global debt service that reflects a realistic projection of the borrower s and guarantor s expenses (2) Business loan modifications and TDRs may require additional information based on the complexity of the loan. This includes, but is not limited to; a. The status of the external environment, including a market analysis with information such as the local economy, changes to the neighborhood, comparable rentals in the market, vacancy rates, rental rates, et cetera; b. The status of the underlying source of cash flows i.e. current rent roll, vacancies et cetera c. Any additional assets that the member could provide as collateral such as other real estate, cash value of life insurance et cetera
4 POLICY: L127 (Cont.) 3. If extending the term and lowering the interest rate still does not result in a reasonable interest rate, consideration shall be given to creating a silent second or breaking the loan or loans into two separate loans: (a) The first, with the longest term, lowest interest rate and largest portion of the total principal to reach the target debt ratio; (b) The second could be a 0% interest rate, zero payment balloon note, with the term matching the length of the modification. The second will be secured by the same collateral and additional collateral if possible. This could be another piece of collateral which is unencumbered, or a second lien (if possible) on another vehicle, a third trust deed on real property or even a UCC-1 on the member s personal property. The additional liens could make the member more inclined to repay. 4. The lender may prohibit cash advances except when required to protect the collateral. 5. Proper monitoring of the ongoing performance of the borrower and guarantor under the terms of the workout plan will be conducted. 6. Loan modifications and TDRs will be documented on a loan log for these purposes and reported monthly to the Board of Directors. 7. An internal grading system will reflect the risk in the workout arrangement on business loans. 8. Sky FCU s ALLL methodology will recognize any potential credit losses in a timely manner through provisions and charge-offs as appropriate. D. Approval and Documenting Modifications 1. The loan committee will be responsible for determining whether or not a consumer loan modification should be granted. Business loan modification will follow the same approval guidelines as defined in the business loan policy. 2. All modifications and TDRs will be recorded on the Modification Loan or Troubled Debt Restructure (TDRs) Logs. On consumer loans, the VP of Lending and or Lending Manager will be responsible for the modification and TDRs reporting on the appropriate log. On Business Loan modifications and TDRs, the Senior Business Lender will be responsible to have all modifications and TDRs recorded on the appropriate reports and logs. 3. Loan Modifications and Troubled Debt Restructures will be reported to the Board of Directors on a monthly basis. Policy Adopted: 05/20/09 Policy Revised: 09/23/10 Policy Revised: 11/22/11 Policy Revised 04/24/12 Policy Revised 04/24/13 By the Board of Directors President/CEO
5
Credit Risk Management. Debunking Myths and Misinformation
Credit Risk Management Debunking Myths and Misinformation Key Topics Impairment vs. Nonaccrual Collateral Dependent Loans Troubled Debt Restructures Concession Criteria Classification, Nonaccrual Quick
More informationTabletop Exercises: Allowance for Loan and Lease Losses and Troubled Debt Restructurings
Tabletop Exercises: Allowance for Loan and Lease Losses and Troubled Debt Restructurings Index Measuring Impairment Example 1: Present Value of Expected Future Cash Flows Method (Unsecured Loan)... - 1
More informationPolicy Statement on Prudent Commercial Real Estate Loan Workouts (October 30, 2009)
Policy Statement on Prudent Commercial Real Estate Loan Workouts (October 30, 2009) The financial regulators 1 recognize that financial institutions face significant challenges when working with commercial
More informationPolicy Statement on Prudent Commercial Real Estate Loan Workouts
Policy Statement on Prudent Commercial Real Estate Loan Workouts The financial regulators 1 recognize that financial institutions face significant challenges when working with commercial real estate (CRE)
More informationPolicy Statement on Prudent Commercial Real Estate Loan Workouts I. Purpose
Policy Statement on Prudent Commercial Real Estate Loan Workouts (October 30, 2009) The financial regulators 1 [Footnote 1. The financial regulators consist of the Board of Governors of the Federal Reserve
More informationTrouble Debt Restructuring & OREO Accounting
Session Objectives Trouble Debt Restructuring & OREO Accounting Chris Vallez, CPA, CICA, MBA, Partner Ellen Vargo, CPA, CFE, FCPA, NCCO Partner Nearman, Maynard, Vallez, CPA s Identify accounting guidance
More informationMBL 2700 Business Loan Collection
MBL 2700 Business Loan Collection Effective: September 2011 Departments Impacted List areas of the Credit Union (departments/branches) affected by the procedure. Introduction The Introduction section contains
More informationSUPERVISORY LETTER NATIONAL CREDIT UNION ADMINISTRATION OFFICE OF EXAMINATION AND INSURANCE 1775 DUKE STREET, ALEXANDRIA, VA 22314
SUPERVISORY LETTER NATIONAL CREDIT UNION ADMINISTRATION OFFICE OF EXAMINATION AND INSURANCE 1775 DUKE STREET, ALEXANDRIA, VA 22314 DATE: March 2013 Supervisory Letter No. 13-02 TO: SUBJECT: All Field Staff
More informationGLOSSARY COMMONLY USED REAL ESTATE TERMS
GLOSSARY COMMONLY USED REAL ESTATE TERMS Adjustable-Rate Mortgage (ARM): a mortgage loan with an interest rate that is subject to change and is not fixed at the same level for the life of the loan. These
More informationHomeownership Preservation Policy for Residential Mortgage Assets. Section 110 of the Emergency Economic Stabilization Act (EESA)
Homeownership Preservation Policy for Residential Mortgage Assets Section 110 of the Emergency Economic Stabilization Act (EESA) requires that each Federal property manager that holds, owns, or controls
More informationRiverside County s Credit Union LOAN POLICY Revised 11/22//99 ==================================================================== INTRODUCTION
INTRODUCTION Riverside County s Credit Union (RCCU) considers the making of loans to members to be the most important element of our operation. In order to protect the credit union s asset quality, emphasis
More informationFEDERAL HOUSING FINANCE AGENCY
FEDERAL HOUSING FINANCE AGENCY ADVISORY BULLETIN AB 2012-02 FRAMEWORK FOR ADVERSELY CLASSIFYING LOANS, OTHER REAL ESTATE OWNED, AND OTHER ASSETS AND LISTING ASSETS FOR SPECIAL MENTION Introduction This
More informationQuestions and Answers on Accounting for Loan and Lease Losses
Office of the Comptroller of the Currency Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of Thrift Supervision Questions
More informationCDFI Portfolio Reporting Definitions, Accounting Treatment, and Reporting Guidance
Definitions, Accounting Treatment, and Reporting Guidance TABLE OF CONTENTS I. INTRODUCTION 1 II. LENDING PORTFOLIO TERMS & DEFINITIONS 3 III. ALLOWANCE AND PROVISION FOR LOAN LOSSES 10 IV. LOAN CHARGE-OFFS
More informationAppraisals and Evaluations. II. When is an Appraisal or Evaluation Needed?
Appraisals and Evaluations II. When is an Appraisal or Evaluation Needed? Appraisal or Evaluation An appraisal is required for all real estate-related financial transactions, except when an exemption applies.
More informationNORTH ISLAND CREDIT UNION
NORTH ISLAND CREDIT UNION Policy Section: Business Services Policy Name: Member Business Lending Policy No: 500-05-01 Board Review & Approval: July 21, 2014 Effective Date: July 22, 2014 POLICY STATEMENT
More informationAllowance for Loan and Lease Losses. III. Measuring Impairment Under ASC 310
Allowance for Loan and Lease Losses III. Measuring Impairment Under ASC 310 Measuring Impairment Under ASC 310 Three Methods Present Value of Expected Future Cash Flows Fair Value of Collateral Observable
More informationConsiderations for Troubled Debt Restructuring Identification of Loans August 2011
Considerations for Troubled Debt Restructuring Identification of Loans August 2011 Introduction This document is intended to provide examiners with a general overview of the judgments required by an institution
More informationSupervisory Letter. Evaluating Credit Union Requests for Waivers of Provisions in NCUA Rules and Regulations Part 723, Member Business Loans (MBLs)
Supervisory Letter Evaluating Credit Union Requests for Waivers of Provisions in NCUA Rules and Regulations Part 723, Member Business Loans (MBLs) I. Introduction. NCUA provides flexibility in applying
More informationCOMPREHENSIVE LOAN MODIFICATION PROGRAM
I. Definitions. COMPREHENSIVE LOAN MODIFICATION PROGRAM a) Residential mortgage loan shall mean any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or
More informationDecember 2008 Revised for Disclaimer: October 2009
This white paper is not authoritative and users are urged to refer directly to applicable authoritative pronouncements for the text of the technical literature. This document does not purport to be applicable
More informationSt. Vincent and the Grenadines International Financial Services Authority Statement of Guidance No. 3
St. Vincent and the Grenadines International Financial Services Authority Statement of Guidance No. 3 Loan Classification Criteria Provisioning Guidelines Treatment of Interest on Loans Write off Procedures
More informationFirst Time Home Buyer Glossary
First Time Home Buyer Glossary For first time home buyers, knowing and understanding the following terms are very important when purchasing your first home. By understanding these terms, you will make
More informationHow should banks account for their investment in other real estate owned (OREO) property?
TOPIC 5: OTHER ASSETS 5A. REAL ESTATE Question 1: (December 2008) How should banks account for their investment in other real estate owned (OREO) property? Detailed accounting guidance for OREO is provided
More informationNorth Carolina Community Federal Credit Union Policy Number 1400 2401 East Ash Street Goldsboro, NC 27534 Revised and Approved 06/22/04 Page 1 of 12
Page 1 of 12 1400 BUSINESS LOAN POLICY I400.1 General. It is the policy of NORTH CAROLINA COMMUNITY FEDERAL CREDIT UNION (NCCFCU) to make loans that represent a desirable and profitable means of investing
More informationMORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.
MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default
More informationCONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS
CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS STATEMENT ON SUBPRIME MORTGAGE LENDING I. INTRODUCTION
More informationDirector s Guide to Credit
Federal Reserve Bank of Atlanta Director s Guide to Credit This guide was created by the Supervision and Regulation Division of the Federal Reserve Bank of Atlanta, 1000 Peachtree Street NE, Atlanta,
More informationCONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS
CONFERENCE OF STATE BANK SUPERVISORS AMERICAN ASSOCIATION OF RESIDENTIAL MORTGAGE REGULATORS NATIONAL ASSOCIATION OF CONSUMER CREDIT ADMINISTRATORS STATEMENT ON SUBPRIME MORTGAGE LENDING I. INTRODUCTION
More informationMortgage & Home Equity Reporting Guidelines In Response to Current Financial Conditions
Mortgage & Home Equity Reporting Guidelines In Response to Current Financial Conditions General Reporting Guidelines Report accounts in the standard Metro 2 Format. Refer to the Credit Reporting Resource
More informationAppendix D: Questions and Answers Section 120. Questions and Answers on Risk Weighting 1-to-4 Family Residential Mortgage Loans
Questions and Answers on Risk Weighting 1-to-4 Family Residential Mortgage Loans 1. When do 1-to-4 family residential mortgages receive 100% risk weight? Any 1-to-4 family residential mortgage loan that
More informationDOBBS FERRY LOCAL DEVELOPMENT CORPORATION ECONOMIC DEVELOPMENT LOAN FUND POLICY GUIDELINES & OPERATING PLAN
DOBBS FERRY LOCAL DEVELOPMENT CORPORATION ECONOMIC DEVELOPMENT LOAN FUND POLICY GUIDELINES & OPERATING PLAN Re-Adopted: March 21, 2013 1 Dobbs Ferry Local Development Corporation Economic Development Loan
More informationVincent H. Vieten, MBL PO Office of Examination and Insurance MBL. CUNA Lending Council Conference Fort Lauderdale, FL November 9, 2015
Vincent H. Vieten, MBL PO Office of Examination and Insurance MBL CUNA Lending Council Conference Fort Lauderdale, FL November 9, 2015 Credit unions continue to post strong loan growth in first half of
More informationResidential Mortgage Underwriting Guideline
Residential Mortgage Underwriting Guideline BC CREDIT UNIONS JANUARY 2015 www.fic.gov.bc.ca INTRODUCTION The Residential Mortgage Underwriting Guideline (guideline) outlines the Financial Institutions
More informationReal Estate Loans REAL ESTATE LENDING POLICY
Real Estate Loans Effective date July 1997 Section 3100.1 Real estate lending is a major function of some branches. However, the composition of real estate loan portfolios will vary from branch to branch
More informationFederal Reserve Bank of Atlanta. A Guide for Specialized Credit Activities
Federal Reserve Bank of Atlanta A Guide for Specialized Credit Activities CONSUMER LENDING According to the Federal Reserve Board of Governors, seasonally adjusted consumer credit outstanding including
More informationBUSINESS AND INDUSTRY (B&I) LOAN GUARANTEE
Rural Development Business & Cooperative Programs www.rurdev.usda.gov/ma Southern New England State Office 451 West Street, Suite 2 Amherst, MA 01002 Phone: 413-253-4300 Fax: 413-253-4347 Norwich Area
More informationFEDERAL DEPOSIT INSURANCE CORPORATION Washington, D.C. 20429 FORM 10 Q
FEDERAL DEPOSIT INSURANCE CORPORATION Washington, D.C. 20429 FORM 10 Q [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June
More informationFHA-Home Affordable Modification Program
These guidelines supplement requirements outlined in e Letter 2009-23 Guidance e Mortgagors FHA-Home Affordable Modification Program The Servicer of the modified FHA-HAMP mortgage must be FHA-Approved.
More informationResponses to Online Questions from the Web and Telephone Seminar
Small Business Administration (SBA) Lending Programs and the American Recovery and Reinvestment Act of 2009 A Web and Telephone Seminar (Hosted by the Office of the Comptroller of the Currency (OCC)) September
More informationLOAN SERVICING REQUEST GUIDELINES FOR THE COMMERCIAL LOAN SERVICING CENTERS
LOAN SERVICING REQUEST GUIDELINES FOR THE COMMERCIAL LOAN SERVICING CENTERS FRESNO SERVICING CENTER 2719 N. AIR FRESNO DR., STE 107 FRESNO, CA 93727 (559) 487-5650 LITTLE ROCK SERVICING CENTER 2120 RIVERFRONT
More informationFederal Housing Finance Agency
Fourth Quarter 20 FHFA Federal Property Manager's Report This report contains data on foreclosure prevention activity, refinance and MHA program activity of Fannie Mae and Freddie Mac (the Enterprises)
More informationDebt Refinancing Under the 7(a) Program. Lynn G. Ozer Executive Vice President Government Guaranteed Lending
Debt Refinancing Under the 7(a) Program Lynn G. Ozer Executive Vice President Government Guaranteed Lending Debt Refinancing SBA-guaranteed loan proceeds may not be used to refinance debt originally used
More informationREGULATION ON MORTGAGE LENDING PROCESS
UNOFFICIAL TRANSLATION Appendix to the Resolution No 446, of the Governor of the Bank of Mongolia, dated October 17, 2008 REGULATION ON MORTGAGE LENDING PROCESS CONTENTS One. GENERAL PROVISION 1. Purpose
More informationASU 2011-02: A Change in Valuing Residential Development Loans
United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q [X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended
More informationPORTFOLIO ARM CLOSED END 2 ND TD. Table of Contents
Table of Contents 1. Program Codes...2 2. Product Overview...2 3. Product Summary...2 4. Documentation...2 5. Underwriting...2 6. Qualifying Rate...2 7. Borrower Eligibility...2 8. Appraisal...3 9. Appraised
More informationLOAN WORKSHEET #11 NONTRADITIONAL AND SUBPRIME MORTGAGE LENDING
While some institutions have offered nontraditional mortgages for many years with appropriate risk management and sound portfolio performance, the market for these products and the number of institutions
More informationUnderstanding the NEW DISCLOSURES FOR THE ALLOWANCE FOR CREDIT LOSSES
Understanding the NEW DISCLOSURES FOR THE ALLOWANCE FOR CREDIT LOSSES Executive Summary & Recommendations This document refers to the recent changes in disclosure requirements for financing receivables
More informationContents. VA Credit Overlays
Contents... 1 Introduction... 3 Links... 3 Transaction Types... 3 Purchase Transactions... 3 Refinance Transaction Regular Refinance... 3 Refinance Transaction Interest Rate Reduction Refinance Loan/IRRRL...
More informationHow Do Examiners Assign Loan Classifications on Your Examination?
How Do Examiners Assign Loan Classifications on Your Examination? Monroeville, PA Presentation Overview Loan Classifications What are they? The Loan Evaluation and Classification Process Five (Six) P s
More informationConventional Jumbo seven year/one year adjustable rate mortgage 30 year term Fully amortizing
1. PRODUCT DESCRIPTION Conventional Jumbo fixed rate mortgage 15 and 30 year terms Fully amortizing Conventional Jumbo five year/one year adjustable rate mortgage 30 year term Fully amortizing Conventional
More informationWBA Overview of New Homebuyer Credit and Recent Government Loan Programs. First-Time Home Buyer Tax Credit
WBA Overview of New Homebuyer Credit and Recent Government Loan Programs First-Time Home Buyer Tax Credit Additional Resources: www.federalhousingtaxcredit.com/2009 http://www.irs.gov/newsroom/article/0,,id=202222,00.html
More informationThe Florist Credit Union:
The Florist Federal Credit Union BUSINESS LOAN APPLICATION I. GENERAL INFORMATION Applicants Name / Borrower (individual business owner or business name): Tax ID Number: Mailing Address: Contact Person:
More informationMORTGAGE DICTIONARY. Amortization - Amortization is a decrease in the value of assets with time, which is normally the useful life of tangible assets.
MORTGAGE DICTIONARY Adjustable-Rate Mortgage An adjustable-rate mortgage (ARM) is a product with a floating or variable rate that adjusts based on some index. Amortization - Amortization is a decrease
More informationDEPARTMENT OF LABOR, LICENSING AND REGULATION SUBTITLE 03 - Commissioner of Financial Regulation. Chapter: 09.03.
DEPARTMENT OF LABOR, LICENSING AND REGULATION SUBTITLE 03 - Commissioner of Financial Regulation Chapter: 09.03.01 - Credit Unions Authority: Financial Institutions Article, 2-105.1, Annotated Code of
More informationSecuritizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer
Securitizing Reperforming Loans into Agency Mortgage Backed Securities: A Program Primer Fannie Mae recently announced plans to securitize single-family, fixed-rate reperforming loans (RPLs) into Agency
More informationSTANDARDS OF SOUND BUSINESS AND FINANCIAL PRACTICES
STANDARDS OF SOUND BUSINESS AND FINANCIAL PRACTICES DICO BY-LAW No. 5 Assessment Workbook Module: Commercial Lending February 2005 3. Credit Risk Management: Commercial Lending It is a sound business and
More informationFinancial Statements. Year Ended December 31, 2014 and for the Period Ended December 31, 2013
Financial Statements Year Ended December 31, 2014 and for the Period Ended December 31, 2013 The report accompanying these financial statements was issued by BDO USA, LLP, a Delaware limited liability
More informationIOWA DIVISION OF BANKING STATEMENT ON SUBPRIME MORTGAGE LENDING
CHESTER J. CULVER GOVERNOR PATTY JUDGE LT. GOVERNOR THOMAS B. GRONSTAL SUPERINTENDENT IOWA DIVISION OF BANKING STATEMENT ON SUBPRIME MORTGAGE LENDING I. INTRODUCTION AND BACKGROUND On June 29, 2007, the
More informationPOLISH & SLAVIC FEDERAL CREDIT UNION Brooklyn, New York. FINANCIAL STATEMENTS September 30, 2014 and 2013
POLISH & SLAVIC FEDERAL CREDIT UNION Brooklyn, New York FINANCIAL STATEMENTS September 30, 2014 and 2013 TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS REPORT...1 FINANCIAL STATEMENTS...3 Statements of Financial
More informationCommon Mortgage and Foreclosure Terms
H ELP FOR N EW Y ORK S TATE H OMEOWNERS C ONCERNED A BOUT F ORECLOSURE Common Mortgage and Foreclosure Terms Talking about mortgages can feel like speaking a foreign language and is even more confusing
More informationWHAT IS BUSINESS CREDIT?
1 WHAT IS BUSINESS CREDIT? Why Do I Need Credit? Establishing a good credit rating is an important financial priority for every business. Having good business credit means that owners of businesses can
More informationNonaccrual Loans and Restructured Debt (Accounting, Reporting, and Disclosure Issues) Section 2065.1
Nonaccrual Loans and Restructured Debt (Accounting, Reporting, and Disclosure Issues) Section 2065.1 Working with borrowers who are experiencing financial difficulties may involve formally restructuring
More informationSupervisory Letter. Current Risks in Business Lending and Sound Risk Management Practices
Dollars in Billions Supervisory Letter Current Risks in Business Lending and Sound Risk Management Practices The September 2009 Financial Performance Report data reflects an increasing portion of loans
More informationSTATE OF NEW JERSEY DEPARTMENT OF BANKING AND INSURANCE STATEMENT ON SUBPRIME MORTGAGE LENDING
STATE OF NEW JERSEY DEPARTMENT OF BANKING AND INSURANCE STATEMENT ON SUBPRIME MORTGAGE LENDING I. INTRODUCTION AND BACKGROUND On June 29, 2007, the Federal Deposit Insurance Corporation (FDIC), the Board
More informationEquity Default Insurance
Equity Default Insurance Increase your loan volume while mitigating your risk Expand lending opportunities without the risk Eligible Loan Types Include: Closed-End Seconds Home Equity Lines of Equity Default
More informationHow To Understand The Financial Position Of Bank Of Birdin Hand
Financial Statements Period Ended December 31, 2013 The report accompanying these financial statements was issued by BDO USA, LLP, a Delaware limited liability partnership and the U.S. member of BDO International
More informationGlossary of Foreclosure Fairness Mediation Terminology
Glossary of Foreclosure Fairness Mediation Terminology Adjustable-Rate Mortgage (ARM) Mortgage repaid at the rate of interest that increases or decreases over the life of the loan based on market conditions.
More informationExhibit 7.9 Sample Loan Operations Risk Based Audit Program
Sample Loan Operations Risk Based Program Inquire about and review written procedures followed during the process of opening and setting up new loans on the system, and procedures on loan approval and
More informationTestimony of JOHN C. LYONS SENIOR DEPUTY COMPTROLLER, BANK SUPERVISION POLICY AND CHIEF NATIONAL BANK EXAMINER. Before the
For Release Upon Delivery 10:00 a.m., June 25, 2013 Testimony of JOHN C. LYONS SENIOR DEPUTY COMPTROLLER, BANK SUPERVISION POLICY AND CHIEF NATIONAL BANK EXAMINER Before the COMMITTEE ON BANKING, HOUSING
More information33 LIBERTY STREET, NEW YORK, NY 10045-0001. July 3, 2014
33 LIBERTY STREET, NEW YORK, NY 10045-0001 PATRICIA SELVAGGI ASSISTANT VICE PRESIDENT July 3, 2014 To: The Individual Responsible for Filing the Consolidated Report of Condition and Income for Edge and
More informationKEWEENAW BAY OJIBWA HOUSING AUTHORITY SMALL BUSINESS LOAN POLICY
KEWEENAW BAY OJIBWA HOUSING AUTHORITY SMALL BUSINESS LOAN POLICY INTRODUCTION The Board of Commissioners of the Keweenaw Bay Ojibwa Housing Authority (OHA) recognizes the need to assist tribal members
More informationMax LTV/CLTV. Units. Max Debt Ratio Purchase or Refinance. 700 1 70% $1,500,000 40% Rate/Term Refinance Cash-Out N/A
Jumbo Series 3 Summary Product Types Minimum Loan Amount 5/1 and 7/1 ARMs $417,001 or Fannie/Freddie loan limits 5/1 ARM qualifies at the greater of the fully indexed rate or Note rate +2%. 7/1 ARM qualifies
More informationMortgage Terms Glossary
Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see
More informationPRAKAS ON ASSET CLASSIFICATION AND PROVISIONING IN BANKING AND FINANCIAL INSTITUTIONS
PRAKAS ON ASSET CLASSIFICATION AND PROVISIONING IN BANKING AND FINANCIAL INSTITUTIONS The Governor of the National Bank of Cambodia - With reference to the Constitution of the Kingdom of Cambodia; Unofficial
More informationAppraisal A written analysis prepared by a qualified appraiser and estimating the value of a property
REAL ESTATE BASICS Affordability Analysis An analysis of a buyer s ability to afford the purchase of a home, reviews income, liabilities, and available funds, and considers the type of mortgage a buyer
More informationAccounting for Troubled Debt Restructurings. Kyle Lyskawa
Accounting for Troubled Debt Restructurings Kyle Lyskawa Introduction It is widely accepted that the mortgage-lending standards during the 2000s contributed to the 2008-9 financial crisis. As borrowers
More informationLOAN WORKSHEET #10 HOME EQUITY LENDING
LOAN WORKSHEET #10 HOME EQUITY LENDING OVERVIEW Home equity lending in Texas was allowed by an amendment to the Texas Constitution approved by the voters on November 4, 1997 and became effective January
More informationGuide. Completing the Mortgage Assistance Application
Guide Completing the Mortgage Assistance Application Getting Started PNC Mortgage Assistance Application Early communication with PNC is very important to ensure your assistance options are not limited.
More informationState Small Business Credit Initiative
State Small Business Credit Initiative Collateral Enhancement Program Ohio Capital Access Program Targeted Investment Program The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services.
More informationMICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY COMMUNITY DEVELOPMENT DIVISION
MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY COMMUNITY DEVELOPMENT DIVISION Subject: SUBSIDY LIMITS AND LIEN REQUIREMENTS Effective Date: September 1, 2015 (revised 10/15/15) This policy defines the subsidy
More informationHOME EQUITY CREDIT ACCOUNT DISCLOSURES
HOME EQUITY CREDIT ACCOUNT DISCLOSURES This disclosure contains important information about your Home Equity Credit Account. You should read it carefully and keep a copy for your records. 1. Availability
More informationSummary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM
Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM Prepared By: Empire Justice Center Kevin Purcell and Salah Maker The Telesca Center for Justice One West Main Street, Suite 200 Rochester,
More informationBorrowing 101. Resources. Are you ready to Borrow?
Borrowing 101 The BDC wants your business to succeed and in turn pay the BDC back. Our programs are revolving loan funds that require loans to be repaid so that we can lend our dollars to other businesses
More information310-10-00 Status. General
Checkpoint Contents Accounting, Audit & Corporate Finance Library Standards and Regulations FASB Codification Codification Assets 310 Receivables 310-10 Overall 310-10-00 Status Copyright 2014 by Financial
More informationUnited Federal Credit Union. Consolidated Financial Report with Additional Information December 31, 2014
Consolidated Financial Report with Additional Information December 31, 2014 Contents Report Letter 1-2 Consolidated Financial Statements Statement of Financial Condition 3 Statement of Income 4 Statement
More informationThrough decades of experience
FDIC Loss-Sharing Agreements: A Primer Through decades of experience acting as the receiver of failed financial institutions, the FDIC has developed a variety of resolution structures designed to reduce
More informationREALTORS Guide to FORECLOSURE RESOURCES
REALTORS Guide to FORECLOSURE RESOURCES Federal & State Programs That May Help Those Facing Foreclosure Making Home Affordable Program Designed to assist families who may face foreclosure, the federal
More informationFIN-331 PHASE 2 HOMEWORK QUESTIONS (ERRATA: 10-24-2015)
FIN-331 PHASE 2 HOMEWORK QUESTIONS (ERRATA: 10-24-2015) Chapter 7: Key Terms Accrued depreciation Appraisal Comparable properties Market value Property adjustments Replacement cost Reproduction cost Restricted
More informationProposed Definitions of Higher-Risk Consumer and C&I Loans and Securities under FDIC Large Bank Pricing
Proposed Definitions of Higher-Risk Consumer and C&I Loans and Securities under FDIC Large Bank Pricing On March 20, the FDIC Board proposed for public comment revised definitions of subprime consumer
More informationMember Business Loans (MBLs) represent a large market share that has largely been overlooked by credit unions. With the right strategy, credit unions
Member Business Loans (MBLs) represent a large market share that has largely been overlooked by credit unions. With the right strategy, credit unions can achieve successful results while helping small
More informationSBA Policy Notice. TO: All SBA Employees CONTROL NO.: 5000-1382. SUBJECT: Reauthorization of 504 Debt EFFECTIVE: 05/26/2016. Refinancing Program
SBA Policy Notice TO: All SBA Employees CONTROL NO.: 5000-1382 SUBJECT: Reauthorization of 504 Debt Refinancing Program EFFECTIVE: 05/26/2016 The Small Business Jobs Act of 2010 (Jobs Act), P.L. 111-240,
More informationOPTIONS IN FORECLOSURE
Section II: KEEPING YOUR HOME OPTIONS IN FORECLOSURE Deciding whether or not to keep your home is something that only you, the homeowner, can determine. The best housing counselors will ask what you d
More informationSafeGuard Capital partners
SafeGuard Capital partners Private Lending: Mortgages & Trust Deeds 900 Washington St, Suite 800 Vancouver, WA 98660 877-280-5771 Private Mortgage Lending (Also Known as Trust Deed Investing) Most investors
More informationArizona Agency Foreclosure Training January 28, 2007
Arizona Agency Foreclosure Training January 28, 2007 Presented by: Andrew J. Loubert Community Reinvestment Solutions, Inc. Arizona Foreclosure Process: Notice of Default Notice must specify: 1. The default
More informationGuidelines for Extra-Judicial Restructuring of Mortgage Loans
Guidelines for Extra-Judicial Restructuring of Mortgage Loans Helping lenders to manage better risks and consumers to make more informed decisions Friedemann Roy The World Bank, Washington DC 2 Objectives
More informationCDFI Bond Guarantee Program Secondary Loan Requirements
CDFI Bond Guarantee Program Secondary Loan Requirements In order for an Eligible CDFI to make a Secondary Loan through the CDFI Bond Guarantee Program, it must ensure that the Secondary Loan is made in
More informationBusiness Financing. An Article by Michael L. Messer and Thomas L. Hofstetter SCHENCK, PRICE, SMITH & KING, LLP
Business Financing An Article by Michael L. Messer and Thomas L. Hofstetter SCHENCK, PRICE, SMITH & KING, LLP Even in these challenging economic times, businesses still have a need to grow and to obtain
More informationNova Scotia Farm Loan Board. Financial Statements March 31, 2015
Nova Scotia Farm Loan Board Financial Statements March 31, Management's Responsibility for the Financial Statements The financial statements have been prepared by management in accordance with Canadian
More informationChapter 11 ALLOWANCE FOR LOAN AND LEASE LOSSES TABLE OF CONTENTS
Chapter 11 ALLOWANCE FOR LOAN AND LEASE LOSSES TABLE OF CONTENTS ALLOWANCE FOR LOAN AND LEASE LOSSES... 11-1 Examination Objectives... 11-1 Associated Risks... 11. 1 Overview... 11. 1.. Definitions...
More information