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#1534936 - 04/13/11 03:31 PM Exceeding 30% of bank's capital
cbrewster Offline
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Joined: Apr 2010
Posts: 170
What happens if we exceed the 30% of bank's capital?

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Audit
#1534941 - 04/13/11 03:37 PM Re: Exceeding 30% of bank's capital cbrewster
Cornfed Turtle Offline
Diamond Poster
Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
Are you talking about your SLTV list exceeding 30% of capital?

If so...expect "increased scrutiny." It wasn't pleasant.

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#1534945 - 04/13/11 03:40 PM Re: Exceeding 30% of bank's capital Cornfed Turtle
cbrewster Offline
100 Club
Joined: Apr 2010
Posts: 170
yes that is what i am talking about. i saw our report and it also includes loan to cost on it so that doesn't go into the loan to value correct?

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#1534969 - 04/13/11 04:04 PM Re: Exceeding 30% of bank's capital cbrewster
Cornfed Turtle Offline
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Joined: Mar 2006
Posts: 1,323
"...Somewhere in Middle Americ...
When you do your loan to value calculation you should use the lower value of appraised value or purchase price. Does that help?

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#1535051 - 04/13/11 05:02 PM Re: Exceeding 30% of bank's capital Cornfed Turtle
cbrewster Offline
100 Club
Joined: Apr 2010
Posts: 170
yes because that gets us below our limit. i was fixing to be in panic mode.

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#1537744 - 04/19/11 09:46 PM Re: Exceeding 30% of bank's capital cbrewster
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,643
Galveston, TX
"yes because that gets us below our limit."

How does "that" get you below the limit? You don't get to use the lower ratio, you have to use the higher ratio calculated by either appraisal or purchase price??
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