Final Rules on Loan Originator Compensation

  • April 26, 2011

Some important changes recently went into effect impacting how bank mortgage loan originators and mortgage brokers can be compensated. Effective with mortgage loan applications received on or after April 1, 2011, loan originators and mortgage brokers can no longer receive compensation incentives based on the pricing of the loan (e.g., the APR or loan origination charges). Instead, compensation must be based either on a fixed percentage of the loan amount or a flat dollar amount per loan.

New Appraisal Guidelines Adopted for Appraisals and Evaluations

  • April 26, 2011

In December, federal financial regulators adopted the appraisal and evaluation guidelines that were originally issued for public comment in 2008. These new guidelines were issued in response to heightened concerns that arose regarding collateral appraisals and credit quality in the aftermath of the financial crisis.

Repeal of Reg Q – Competitive Strategy in a Post-Reg Q World

  • April 26, 2011

On July 21, a banking regulation on the books for nearly a century and considered by many to be one of the most antiquated laws will finally be repealed. That’s the date when Reg Q, which has prohibited banks from paying interest on commercial demand deposit accounts since the Great Depression, will officially become part of the history books. The repeal of Req Q comes courtesy of the Dodd-Frank financial reform bill passed last summer. The big question now is what will be the impact of this repeal on community banks?

Troubled Debt Restructures – What You Should Know About TDRs

  • April 26, 2011

In the current post-financial crisis lending environment, financial regulators are taking an especially close look at restructured small business loans. Most banks are working with at least some of their small business and commercial real estate borrowers to rehabilitate troubled loans by modifying loan terms and granting certain concessions.

Office Closed

  • April 14, 2011

Our office will close at noon on Friday, April 15th. We will reopen at 8 a.m. on Tuesday, April 19th.

Congress Votes to Repeal 1099 Requirements

  • April 6, 2011

The Senate voted Tuesday to repeal the expanded 1099 information reporting requirements in last year’s health care reform and small business...

Repeal of Controversial Form 1099 Reporting

  • April 1, 2011

Momentum to repeal the controversial Form 1099 expanded business information reporting has slowed as the Senate debates how to pay for removal of the recently-enacted provision. The Senate recessed on March 18 for a one-week break with lawmakers still divided over offsets. There are two controversial reporting requirements that most business leaders want to see removed.

S Corp’s Associates Were Employees, Not Independent Contractors

  • April 1, 2011

Despite flexible pay and work arrangements, the Tax Court has found that the president, associate attorneys and law clerk of an S corporation doing business as a law firm were employees and not independent contractors for tax purposes (Donald G. Cave A Professional Law Corp., TC Memo. 2011-48). The court rejected the S corporation's claim that the individuals enjoyed sufficient control over their work to treat them as independent contractors.

IRS Revises Collection Financial Standards

  • April 1, 2011

The IRS has posted updated collection financial standards for use in calculating repayment of delinquent taxes on its web site. These national standards apply to food, clothing, health care and certain other expenses. Local standards apply to housing, utilities and transportation costs. The standards are effective March 1, 2011.