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pay/Qualified Mortgage rules, no Right of
Rescission (no new funds are advanced!) COMMUNITY BANK
and these are not reportable under the EXPERIENCE
Home Mortgage Disclosure Act (HMDA). For
HMDA, you hear the mantra that MECAs— CORRESPONDENT
modifications, extensions and consolida-
tion agreements—are not reportable. The BANK EXPERTISE
one exception to that is the modification of
an interim construction loan to permanent
financing via a modification that would be
HMDA reportable. Fixed Income Securities Sales
Flood requirements are another issue.
Remember that the flood regulations define •
tripwires for MIRE—making, increasing, re- Bond Accounting & Safekeeping
newing or extending. If your modification •
touches any of those tripwires, as silly as it
seems, you would have to comply with the 2018 Credit Analysis Summit Loan Hedging (ARC Program)
notice requirements that are under the Flood 8:30 a.m.–3:30 p.m., April 19 •
Disaster Protection Act, including the compli- TIB, 11701 Luna Rd., Farmers Branch, Texas Commercial & Industrial Credits
ance issues surrounding the flood determi-
nation itself. IBAT’s one-day Credit Analysis Summit addresses critical •
Could you modify an adjustable-rate credit analysis considerations, documentation, monitoring and International Services
feature that had been previously disclosed other important factors central to the review of most major loan
without treating it as a refinance? For ex- types. The program emphasizes ratio analysis, balance sheet and •
ample, could you change either a floor or a income statement trends, SFAS 95 cash flow analysis and non- Clearing/Cash Management
ceiling if a floor or a ceiling had been pre- financial considerations critical to sound underwriting principles. •
viously disclosed? Yes—they are terms that Real estate lenders and others involved in that process,
could be modified. However, you could not loan review personnel, credit administration, accountants, Asset/Liability Management Reporting
add a floor or a ceiling if one had not pre- consultants and regulators all will benefit from this summit. The
viously been disclosed without treating that
as a refinance. course is taught by 30-year banking veteran Merrill Reynolds,
partner and founder of RWG/Reynolds Williams Group. 512.681.4452 800.848.8573
inally, don’t attempt a modification
without consulting with your legal 2018 Cash Flow Summit
F counsel. There should be a review of 8:30 a.m.–3:30 p.m., April 20
the current note and security agreement to TIB, 11701 Luna Rd., Farmers Branch, Texas 111 Congress Avenue, Suite 400
ensure there is no language that would com- Austin, Texas 78701
plicate a modification. While it is doubtful IBAT’s Cash Flow Summit will explore cash flow analysis,
that there is such language, you should with discussions on understanding tax return schedules, various
still have your own legal counsel perform a approaches to cash flow and a dive into global cash flow. The
review. And the Texas Government Code pro- instruction will be supported by a case study that will include www.csbcorrespondent.com
hibits “the practicing of law” through the interaction between the instructor and participants. Topics will Visit Us
preparation of documents related to real also include capital gain treatment, K-1 pass-through incomes,
estate transactions. That means that unless dividends, taxes, contributions, maintenance capex, debt service
you are an attorney, you can’t prepare a requirements, global cash flow and living expenses. This summit
modification agreement if it relates to a real will benefit bank lenders, credit analysts and others involved with
estate transaction. H
credit administration. Back by popular demand are instructors
Kelly Goulart—a certified regulatory compliance Matt Earl and Merrill Reynolds of RWG/Reynolds Williams Group.
manager, certified anti-money laundering
specialist and certified internal auditor—is IBAT’s REGISTER ONLINE at IBAT.ORG/EVENTS/SUMMITS
regulatory compliance senior manager. Contact
him at 512/275-2231 or [email protected].
MARCH–APRIL 2018 | 11
