I was wondering if there had been any changes or updates to the answer to the following question? Reporting Interest on Commercial Real Estate LoansQuestion: What is the regulation on reporting interest on commercial real estate loans? And should we send a 1098 to all borrowers or a year end history of interest paid? Answer: The IRS reporting requirement doesn't distinguish between commercial and residential real estate. It keys instead on who the primary obligor on an obligation is, and whether the obligation is secured by real property. If a loan is secured by real property, and the primary obligor is an individual (includes sole proprietors), and the amount of interest paid by or on behalf of the individual is $600 or more, you have to deliver a 1098. If the primary obligor is not an individual (even if trustees, comakers, guarantors or other hangers-on are individuals), or if there is no real property involved, or if the amount of interest on the obligation was less than $600, there is no 1098 requirement. Any reporting you do in those cases would be as an accommodation. (First published on BankersOnline.com 3/20/06)
When you have a joint account and the tax reporting owner passes away, can you just change the SS# on the account to the surviving party and leave the account open or should you close that account and open a new account?
We have a client that is reporting in April that checks posted to his account in Jan are due to fraud and that they were stolen during a home invasion. He is requesting to be made whole for the transactions. Do we as the paying bank have to comply? The bank of first deposit has refused our return claiming it was past our midnight deadline.
A question was previously posted in regards to HMDA Reporting for Property Purchased with Cash. Specifically, the question states: "We have a business customer that purchases property for cash, then applies for a mortgage loan using the property as collateral. Is this a HMDA reportable loan or not; if so, what is the purpose? He is not improving the properties. Should we consider this a refinance?" The answer provided states that it is not a refinance. However, it does not specify if its considered a purchase or if it is not HMDA reportable at all. Please let me know if this is HMDA reportable and if so, if it considered a purchase.
When a company or organization has multiple accounts with same TIN and different addresses, should CTRs be filed with different section A entries or under just one? Which address should be used? For example, School District with different schools depositing into multiple accounts with the same TIN or different Boy Scout Troops with same TIN, different addresses.
I have a Reg O Publication that states executive officers may have to file a report to the board if they borrow money from another bank or banks and 12 CFR 215.9 is referenced. The regulation is not clear on this reporting requirement for executive officers. Can you clarify this requirement.
For HMDA reporting for adverse action loans if the APR reported doesn't agree with the Initial TIL, is this a HMDA reporting Error?
I have a commercial loan secured by 2/13 interest (first mortgage) on a house. When this loan was originated, it was an open end line of credit and now has been renewed (new loan number) into a single payment loan due in one year. Is this a HMDA reportable loan? The source of repayment for the loan is business income.
We recently had an FDIC compliance exam and were criticized for gathering information on some home equity refinanced loans. We had been told in the past that if it was a refi, we should get the info...we are not a HMDA reporting bank. This examiner said that according to Regulation B it depended on what the principal percentage of what the refi was used for...either purchase money or HE. We checked with several non-HMDA banks and they are doing it like us. The examiner said we could question it, but this was his determination. Any help?
Can you give a free gift valued over $25 to customers with a Health Savings Account? The account is coded as a checking account.