To our valued clients and friends,

 In the current post-financial crisis lending environment, most banks are working with at least some borrowers to rehabilitate troubled loans by modifying loan terms. Loan modifications may result in the creation of what's known as a troubled debt restructure, or TDR. This distinction is important, because TDRs are subject to additional regulatory reporting, tracking and accounting requirements. See our lead article below. 

Thanks to the Dodd-Frank financial reform bill, Reg Q will finally be repealed this summer. The big question now is what will be the impact of this repeal on community banks? 

In December, federal financial regulators adopted the appraisal and evaluation guidelines that were originally issued for public comment in 2008. And we describe some important changes that recently went into effect impacting how bank mortgage loan originators and mortgage brokers can be compensated.

We hope that you find this issue of Financial Lending Notes to be helpful and beneficial to your company. If you would like more information on any of the topics mentioned here, we would be glad to discuss them with you in more detail.  

Sincerely,

Tom Beisner, CPA, Partner