Search Results for 'Asset Quality'


IRS Targets How Banks Are Treating Non-Performing Loans; Accrual Interest, Deductions at Issue August 30, 2010 The IRS has created special teams to scrutinize bank income tax returns, questioning bad debt deductions and making sure that accrual interest on non-performing loans is treated properly, according to IRS Non-Performing Loans Directive #1. The rub: While bank regulators require banks to stop... Continued... Indexed by: Accounting \| Asset Quality \| Legal
How Banks Can Opt for the Bad Debt Conformity Election August 30, 2010 File IRS Form 3115, Application for Change in Accounting Method. You must file the form with your tax return for the first year you are making the conformity election. Get a letter from your primary federal banking regulator that states you follow loan losslassification standards that are in... Continued... Indexed by: Accounting \| Asset Quality \| Legal
New Mortgage Crisis Looming; Obama’s HAMP Program Ill-Equipped August 02, 2010 Big banks and mortgage servicers could face an unexpected and exponential increase in mortgage delinquencies in the second half of 2010. But the government’s signature program to modify troubled home loans - HAMP - is ill-equipped to handle even the current volume of modifications, warn... Continued... Indexed by: Asset Quality
FDIC Tightens Benefits of Loss-Sharing Agreements; Are They Worth the Hassle? August 02, 2010 Banks eyeing what has appeared to be a lucrative and relatively easy way to expand their operations through FDIC loss-sharing agreements need to be aware of key changes to the program. The FDIC – recently criticized by the GAO for mishandling the initiative – has reduced the amount of... Continued... Indexed by: Asset Quality \| Exams/Enforcement \| Troubled Banks
Take the CRE Loan Workout Quiz: Try Your Hand at These Scenarios June 14, 2010 Required reading: The CRE loan workout scenarios outlined in the FFIEC's policy statement issued last fall. Although the examples are "for illustrative purposes only," they provide a roadmap for banks on the analytical process examiners will use when classifying credit and assessing whether... Continued... Indexed by: Accounting \| Asset Quality
Banks Now Have Some CRE Relief with REMIC Rule Modifications June 07, 2010 Banks have picked up a bit of relief in their ability to service commercial real estate loans they sold on the secondary market. The Treasury Dept. recently loosened the ability to modify CRE loans bundled into REMICs without affecting the investments’ preferential tax status. REMICs, or... Continued... Indexed by: Accounting \| Asset Quality \| Regulation
Banks Face Tedious Changes, Higher Costs under Mark-to-Market Requirement for Loans June 07, 2010 You soon may be required to “mark-to-market” all loans, under a proposal from FASB that also would require banks to accelerate recognition of credit losses and recalculate core deposits. The goal is transparency for investors, the accounting board says, but the result for banks is... Continued... Indexed by: Accounting \| Asset Quality \| Capital Adequacy
Elements of the FASB Rule June 07, 2010 The accounting would be based on the characteristics of the financial instrument and how assets and liabilities are used in the business. Financial assets that have variable cash flows or that are regularly traded would be accounted for at fair value. For financial assets which are... Continued... Indexed by: Accounting \| Asset Quality \| Capital Adequacy
Key Elements in a Workout Plan May 31, 2010 Regulators say a workout plan should include: Updated and comprehensive financial information on the borrower, real estate project and any guarantor Current valuations of the collateral supporting the loan and the workout plan Analysis and determination of appropriate loan structure (e.g., term... Continued... Indexed by: Asset Quality \| Regulation
About 20% of Banks Exceed CRE, ADC Guidelines, as Crackdown Continues May 31, 2010 Regulatory scrutiny of commercial lending has continued to skyrocket, with examiners searching Call Reports for banks that exceed what once were suggested thresholds for CRE or ADC loan concentrations and demanding justification for it. A Bank Safety & Soundness Advisor analysis reveals that... Continued... Indexed by: Asset Quality \| Exams/Enforcement \| Regulation