02/05/2023
When making a new CD secured loan of $50,000, our aggregate exposure with the borrower will be $1,500,000. The bank's board has delegated lending authority to the underwriter of $650,000. Does the underwriter have the authority to approve this loan secured by the CD or does it have to be approved by the Loan Committee due to the aggregate debt?
05/23/2021
Is it illegal or taboo for financial institutions to share loan policies? And by "share", I mean one officer sending a redacted copy of their policy to an officer of another institution.
03/12/2017
How often should our lenders be completing inspections of construction loan sites? Our policy states that we will complete monthly inspections, however from an efficiency/cost standpoint that seems extreme.
12/04/2016
I keep getting requests from lenders wanting to do an unsecured business loan taking real estate as an abundance of caution. I am fairly new to the bank and I have told them on several occasions that we should not be doing this, but I am getting resistance and the lenders are trying to tell me that the bank has always done this. Can you tell me if there are any situations where it is acceptable to do this?
10/30/2016
I keep getting requests from lenders wanting to do an unsecured business loan taking real estate as an abundance of caution. I am fairly new to the bank and I have told them on several occasions that we should not be doing this, but I am getting resistance and the lenders are trying to tell me that the bank has always done this. Can you tell me if there are any situations where it is acceptable to do this?
02/07/2016
With the escrow ruling becoming effective January 1, 2016, does anybody have any sample correspondence that they are sending to their borrowers explaining this new rule and the requirement to escrow their flood insurance premium?
06/17/2013
We have an Ag Loan that has five parcels secured by one loan. When running the flood determination, it shows that two of the parcels are in a SFHA. Out of the five, the two that are in the SFHA have structures on them, a mobile home (permanent foundation) a dwelling, and two equipment/storage sheds. We have flood insurance on the mobile home and the dwelling. My question is are we suppose to have a separate policy for each and every structure on the parcel or can we go by the FDICs special situation clause where it states for multiple structures that secure a loan FEMA does permit borrowers to insure nonresidential buildings using one policy with a schedule separately listing each building or do we have to have a policy for each storage building?
05/20/2013
We have a situation involving flood insurance and are unable to come to a consensus. We have an RE loan for $85,000 on a property located in a flood zone. The flood insurance coverage on this property is $65,000. We have the Dad's property as collateral, also in a flood zone. Dad has $25,000 coverage on his property. We have 1st mortgages on both properties. We are named loss-payee on both policies. Is this okay?
05/13/2013
FEMA's forced-placement requirements states that the lender shall purchase the insurance on the behalf of the borrower but does that mean to include that the borrower is to be a named insured on a forced-placed policy? Many independently purchased insurance coverages are provided for the banks interest only.
04/22/2013
Have a couple of questions regarding farmland.1. What is the supervisory LTV limit on farmland?2. Is farmland with ongoing farming operations considered to be improved property?