1 / 9

MBA’S 91 st Annual Convention Warehouse Financing, From a Lender and Borrower Perspective

MBA’S 91 st Annual Convention Warehouse Financing, From a Lender and Borrower Perspective. By Kenneth F. Richey Richey, May & Co., LLP. THE ACCOUNTING PERSPECTIVE. Backoffice Issues Accounting Issues Tax Issues. BACKOFFICE ISSUES. Accounting System Overload Personnel Upgrades

basia-cash
Download Presentation

MBA’S 91 st Annual Convention Warehouse Financing, From a Lender and Borrower Perspective

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MBA’S 91st Annual ConventionWarehouse Financing, From a Lender and Borrower Perspective By Kenneth F. Richey Richey, May & Co., LLP

  2. THE ACCOUNTING PERSPECTIVE • Backoffice Issues • Accounting Issues • Tax Issues

  3. BACKOFFICE ISSUES • Accounting System Overload • Personnel Upgrades • Leaking Money (Where did the cash go?)

  4. Quickbooks-Quasi-Cash Basis What’s a Chart of Accounts? Cash In = Revenue Cash Out = Expense Loan Level, Accrual Basis Loan Officer Level Profit Centers >Loan Disbursement >Warehouse Advance >Investor Wire >Warehouse Paydown >Operating Account Trsfs >MIPs, Escrows, 1st Pymts ACCOUNTING SYSTEM OVERLOAD

  5. PERSONNEL UPGRADES • Additional Staffing • Can Your Current Staff Learn New Tricks? • Is it time for a CFO ?

  6. LEAKING MONEY • Appraisals & Credit Reports • Collecting 1st Payments Receivable • Are Investors’ Paying Us What’s Due Us ? • MIP Transmittals-Late Pymt Penalties • Loan Buybacks

  7. ACCOUNTING ISSUES • Revenue Recognition (SFAS No.’s 91 & 140) • Derivatives-Mark to Market Issues

  8. REVENUE RECOGNITION • Deferral of loan origination fees and related direct costs (SFAS No. 91) • Why can’t I book SRPs and gain on sale when I get an investor commitment (SFAS No. 140) • Locked Pipeline = Derivative that may have to be recorded on the balance sheet

  9. TAX ISSUES • Mark-to-Market-Loan Portfolio • Cash vs. Accrual Basis Accounting • Deferred Loan Origination Fees and Related Commissions

More Related