Can a partnership account receive cash back on a deposit?
A borrower wishes to borrow $20,000. The money will subsequently be given to a third party who will use it to start a small business. Is this a consumer purpose loan or a business purpose loan? The argument I am receiving is that it is a consumer purpose loan because the borrower’s purpose is to make a gift.
Can a DBA account be held jointly between two individuals? If so, would you hold the record as a DBA account or a joint account?
Our borrower, a partnership, has a business line of credit which is secured by the primary residence of one of the partners. Is this HMDA-reportable?
We have a customer who owns a business that is listed as a sole proprietorship with its own EIN. A man and wife own this business. They have several direct deposit accounts with us, one of them being a personal money market account. The only transactions that seem to go to the account are ACH credits for the business. These ACHs go on daily, with sometimes large amounts. I guess what I am wondering if this is OK. Shouldn't the ACH for the business be going to the business account?
A question was recently posed on whether the revised HUD-1 had to be used on commercial business loans made to a corporation, partnership, etc. (non-consumer/exempt from RESPA). I was unable to find an answer to this question. Can the simple/previous HUD-1 be used for these types of loans?
In a Reg D audit, I found a few accounts whose eligibility I question. I am new to my position and have been told that an account listed as a PSC (Professional Services Corp.) is eligible for a NOW account under Individual Status. I just wanted to make sure that was correct. Also, will the Secretary of State site tell me under "Company Type" if it is a Sole Proprietor?
Does a Reg B joint credit apply only to individuals applying for a loan or does it also apply to businesses? We have talked with banks that are utilizing Reg B on business loans if two or more individuals are guaranteeing the loan or if the loan is to an individual and a business. It is my understanding that Reg B joint credit applies only when two or more individuals are applying for credit for either a consumer loan or a business loan. Is this correct?
Reg B applies to consumer and agricultural/commercial loans. Is Reg B on agricultural/commercial loans only required if the joint applicants are husband and wife? I had a father and son buy a commercial property and they are not a legal partnership. We forgot to have them sign the Reg B, which is a different document for agricultural and commercial loans. I had a fellow officer tell me this only applied to husband and wife applicants. Is this true or does it apply to any joint applicants? I just want to be clear on this since I have to check and make sure all the required documents are signed. I was under the impression that Reg B was anyone applying jointly.
According to the instructions for IRS Form 1099-MISC, payments to lawyers and law firms are required to be reported regardless of whether the lawyer or firm is classified a sole proprietorship, partnership or corporation. Here is the <a href="http://www.irs.gov/instructions/i1099msc/ix01.html">link</a>. In order to eliminate this reporting requirement, our bank does not write checks to attorneys at loan closings. Attorneys object to our practice and tell us that we are the only lender that does it this way. We checked with other lenders in the area and learned that they do, in fact, write checks payable to attorneys at loan closings and do not report those payments to the IRS. Are we missing something here?