A Review of the New Tax Law: What Lenders Should Know
The Tax Cuts and Jobs Act passed in late 2017 with significant implications for businesses. Lenders need to be aware of these changes and understand the potential ramifications for their borrowers — both positive and negative — so that they can help customers take full advantage of any new tax breaks and minimize the adverse effects of provisions that will generate additional revenue for the IRS. This article provides a review of some of the most relevant provisions and lists several additional business-related tax changes borrowers may want to consider.
How Do You Determine Loan Prices?
Competitiveness with other banks is an important issue in determining loan prices, but failing to account for such factors as desired return, cost, risk and credit profile can drastically reduce a lender’s competitive advantage. A better way to set loan prices is to conduct a thorough, objective analysis using a loan-pricing model. This article discusses the benefits of loan-pricing models and suggests that using them can help lenders attract and retain customers with the highest credit quality.
Banking Agencies Issue Final Rules on Commercial Real Estate Appraisal Threshold
In a joint press release, the three major banking regulatory agencies — The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency — announced the issuance of a final rule that will increase the threshold for commercial real estate transactions requiring an appraisal from $250,000 to $500,000. Why the need for a new threshold amount? This article explains just that and more.