How to Prepare for LIBOR Replacement
- May 23, 2019
The London Interbank Offered Rate, or LIBOR, has been used for decades as the benchmark interest rate for many bank loans, including commercial and small business loans. But regulators have...
Interest Rates Are Rising: How Could This Impact Borrowers and Your Bank?
- May 16, 2019
The Federal Reserve is now well into its latest rate-hike campaign that started with a quarter-point boost in the Federal Funds...
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.
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.
Commercial Lending…More Lessons: Equity and Contingent Liabilities
- October 26, 2009
In addition to those detailed in our article, Commercial Lending...After The Crisis: Back To Basics, here are two more hard lessons learned from the financial crisis:
Commercial Lending…After The Crisis: Back To Basics
- October 1, 2009
Now that we have digested the fact that most banks' loan portfolios are weaker today than they were two years ago, it's a good time to review a few of the basics of commercial lending.
Grant Thorton Addresses Bank Capital Requirements in Letter to Regulators
- May 13, 2009
On May 6, 2009 public accounting firm, Grant Thorton sent a letter to Timothy Geithner, Ben Bernanke and Sheila Bair addressing bank capital requirements and the allowance for loan losses. I believe that this letter completely explains the auditor's viewpoint on these two issues and offers the regulators a solution to protecting banks from future losses.
Bank Lending Terms Keep Squeeze on Consumers
- May 5, 2009
Banks tightened lending standards further in the three months to April, adding to the credit squeeze on households and businesses, the Federal Reserve’s senior loan officers survey said on Monday.
The Next Accounting Controversy
- May 1, 2009
Standard-setters have moved on from fixing fair-value rules and have set their sights on off-balance-sheet accounting and loan-loss provisioning. Revisions to how companies account for off-balance-sheet items and loan-loss provisions will knock fair-value accounting off the front page with respect to financial reporting, according to James Kroeker, acting chief accountant at Securities and Exchange Commission.