Events

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An In-Depth Look at Regulation Z’s Amended Qualified Mortgage (QM) Rule

Do you know and understand the new definition of a qualified mortgage (QM)? Is your institution working on transitioning to the new rules? Will you be ready by the October 1, 2022, compliance deadline? Get the information you need to know with this detailed analysis of the CFPB’s QM rule changes.

AFTER THIS WEBINAR YOU’LL BE ABLE TO:

  • Identify two methods by which your institution can satisfy Regulation Z’s ability-to-repay requirements
  • Assimilate the changes to the definition of a qualified mortgage (QM)
  • Understand which QM thresholds are subject to change annually
  • Determine the elements of a “seasoned qualified mortgage”
  • Prepare for transition timing in advance of the mandatory compliance date

WEBINAR DETAILS
Join regulatory compliance counselor Michael Christians for an in-depth analysis of the CFPB’s changes to the definition of a qualified mortgage. In December 2020, the CFPB issued a final rule that replaces the maximum DTI requirement with a pricing test and removes the prescriptive underwriting standards found in Appendix Q. The rule was effective for secondary market loans beginning July 1, 2021, and has a mandatory compliance date of October 1, 2022, for all other loans.

WHO SHOULD ATTEND?
This highly informative session is specifically designed for real estate lenders, loan processors, lending department leadership, compliance officers, and audit personnel.

TAKE-AWAY TOOLKIT

  • Desktop quick reference guide for Regulation Z’s ability-to-repay requirements
  • PDF of slides and speaker’s contact info for follow-up questions
  • Attendance certificate provided to self-report CE credits
  • Employee training log
  • Interactive quiz

NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.

MEET THE PRESENTER – Michael Christians, Michael Christians Consulting, LLC
As principal of Michael Christians Consulting, LLC, Christians assists financial institutions and organizations across the country with ensuring their compliance programs conform to Federal laws and regulations. He provides counsel relative to current rules, assists with the strategic implementation of upcoming regulatory changes and offers customized education and training services.

Christians has more than two decades of experience in the financial services industry with a primary focus on consumer compliance. He obtained his Juris Doctorate from Drake University Law School. He is a member of the Iowa State Bar where he is licensed to practice law.

REGISTRATION OPTIONS

  • $245 – Live Webinar Access
  • $245 – OnDemand Access + Digital Download
  • $320 – Both Live & On-Demand Access + Digital Download
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GSB – Commercial Lending: Introduction to Global Cash Flow

This webinar covers common versions of global cash flow (GCF) analysis being used by bankers, with a focus on GCF as part of the underwriting process in most medium- to smaller-sized businesses and self-employed lending situations. We will explore the information and resources needed, plus key issues for extracting data from tax returns. One area of concern is the income listed on page two of Schedule E compared to withdrawals or contributions shown on the related K-1s. A case study is used to illustrate key points.

Topics to be covered include:

  • Versions of GCF being used by bankers
  • Regulatory concept of global analysis
  • Analytical and conceptual issues:
    • Giving credit for business earnings or amount distributed
    • What is shown on a Schedule K-1 (income/expense pass-throughs versus cash inflows/outflows)
    • Some tax return basics/issues along the way

Target Audience: Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers, and credit officers.

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option
Live presentation $330

Recording available through August 3, 2022

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GSB – Construction Lending: Issues in Underwriting Commercial Construction Loans

Construction loans for commercial real estate (CRE) remain a major part of commercial bank lending. This program provides an overview of the key issues involved in analyzing and underwriting commercial construction loans and assessing the risk involved.

In a sense, the underwriting is a mix of (a) CRE project viability, (b) sponsor analysis and (c) construction feasibility. Further, the underwriting is difficult due to several unknowns. First, usually there is no historical operating information. Second, the developer/sponsor may have a number of other projects under construction or in the pipeline. Third, many property types do not get significant pre-leasing prior to or during construction. Finally, the developer may not have selected or engaged a contractor, or other key steps in the construction process may not have been finalized prior to bank underwriting.

Topics to be covered:

  • Understanding the type of project (full construction vs. repair/remodel/repurpose)
  • The three major areas of risk to the developer when constructing an investment property
  • Determining project feasibility and cash flow sustainability
  • Engaging a third-party market feasibility report
  • Working from developer projections or market data
  • Issues with pre-leasing (or lack of preleasing) and your bank’s appetite for speculative (spec) risk
  • Re-lease and rollover risk into the future
  • Key steps in analyzing the developer/sponsor’s experience and financial condition and key information needed beyond tax returns
  • Assessing the construction risk
  • Special issues with owner-occupied loans
  • Identifying the degree of risk and communicating appropriate levels of monitoring and controls to the administrative team, over and above the basic processes used to assure that the project is within budget, on time and proceeding per the plans and specifications

Target Audience:  Commercial lenders, credit analysts and support staff that deal directly with commercial construction loans; mortgage bankers, private bankers, small business lenders, loan review specialists, special assets officers, lending managers, and credit officers indirectly involved in the construction lending process.

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option
Live presentation $330

Recording available through August 3, 2022

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GSB – Commercial Lending: Expanding from Global Cash Flow into Global Analysis

This seminar covers common versions of global cash flow (GCF) analysis being used by bankers, with a focus on GCF as part of the underwriting process in most medium- to smaller-sized businesses and self-employed lending situations. Beyond the basic calculations involved in combining business and personal cash flow, a major issue is how balance sheet changes affect business cash flow, and should business cash flow be broader than earnings before interest, depreciation and amortization (EBITDA)? What about personal balance sheet changes? We complete the cash flow part of the global analysis by reviewing an optional and simplified approach for integrating the cash flow effects of business and personal balance sheet changes.

Another issue is how to assess the borrower’s other business holdings, including commercial real estate (CRE). In many instances, the magnitude of guarantees (contingent liabilities) related to other businesses are much larger than the global cash flow that has been calculated. What are some best practices for moving beyond cash flow to making this global, “portfolio” assessment?

Topics to be covered include:

  • Regulatory concept of global analysis
  • Analytical and conceptual issues:
    • Incorporating business balance sheet changes
    • Effect of loss carryforwards in a business tax return
    • GCF and the larger, global analysis of business and CRE owners/guarantors and related contingent liabilities
    • Some tax return basics/issues along the way
    • When to recognize that the business itself or a real estate project should stand on its own, and a global cash flow “can’t make a bad loan good.”

Target Audience: Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers, and credit officers.

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Options
Live presentation $330

Recording available through August 17, 2022

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Consumer Real Estate Loans

Overwhelmed by the 2014 CFPB changes and the subsequent TRID requirements, many lenders grew to dread consumer real-estate loans. Some financial institutions stopped offering these loans altogether. In this webinar, Anne Lolley will guide terrified lenders and processors through a simple real-estate loan and explain the current compliance rules. This webinar will help you tame those scary real-estate-loan problems and will be particularly helpful to banks wanting to offer consumer real-estate loans for the first time in several years. The supplemental booklet is clear and easy to use. Consider it a companion to the popular Best-Ever Consumer Checklists.

Covered Topics

  • Ability to repay and qualified mortgages
  • Right of rescission
  • High-cost mortgages and HPMLs
  • HMDA
  • Providing copies of appraisals
  • Intent to apply for joint credit
  • Flood insurance
  • Appraisals and evaluations
  • Credit score disclosures
  • Insurance disclosures
  • Military Lending Act

Who Should Attend?
Lenders, loan processors, compliance officers, and loan review personnel will benefit from this webinar.

Presenter
For over forty years, Anne Lolley has been simplifying compliance issues for bankers. After earning her law degree from the University of Kansas, she joined the Kansas Bankers Association, where she developed its successful legal department and gave compliance-related seminars. She has been a compliance officer for two banks and currently works with Bank Consulting Services, where she continues to provide webinars to Kansas bankers. Her expertise at simplifying the complex and creating user-friendly reference manuals has made her a popular instructor.

Registration Options

  • Live Plus Five (days) – $265
  • OnDemand Recording – $295
  • CD-ROM – $345
  • Live Plus Six (months) – $365
  • Premier Package – $395
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GSB – Construction Lending: Administering and Monitoring Commercial Construction Loans

The 2008–2009 downturn in commercial real estate (CRE) exposed many weaknesses in bank construction lending practices. This was due, in part, to banks attempting to utilize versions of their residential forms and policies to administer commercial construction loans. Such an approach generally does not adequately control the situation due to many important differences between residential and commercial projects. This program covers the important steps involved in effectively administering commercial construction loans, including common errors to avoid.

Topics to be covered:

  • Differences between residential and commercial construction loans
  • Factors to consider in gauging the level of risk involved in the project/loan
  • Key issues with construction contracts, budgets and the interest reserve
  • items that determine how you handle a specific loan
  • The level of construction risk
  • The type of commercial construction situations (new construction, repair/renovation, etc.)
  • The loan approval and related conditions or contingencies
  • The commitment letter or term sheet written to the customer
  • Your bank’s policies and procedures
  • The construction loan agreement
  • Adjustments as the project unfolds
  • Tips for other documentation: Surveys, title insurance and bonding
  • Funding controls: Inspections, lien waivers and disbursement methods
  • Completion of the project and stabilization (if applicable)

Target Audience: Commercial lenders, credit analysts, and support staff that deal directly with commercial construction loans; mortgage bankers, private bankers, small business lenders, loan review specialists, special assets officers, lending managers, and credit officers indirectly involved in the construction lending process.

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Options
Live presentation $330

Recording available through August 10, 2022

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GSB – Commercial Lending: Global Cash Flow Mechanics, Including Living Expenses

This webinar covers common versions of global cash flow (GCF) analysis being used by bankers, with a focus on GCF as part of the underwriting process in most medium- to smaller-sized businesses and self-employed lending situations. A major issue is how to adjust or reduce the personal cash flow for income taxes and living expenses. Because of differences in how a personal debt-to-income (DTI) is derived versus a business debt service coverage (DSC), some type of adjustment must be made before combining personal and business data. This leads to a discussion of the advantages and disadvantages of adjusting for income taxes and living expenses, versus adjusting the required coverage factor. Another major issue is capital gains and other items within the broader recurring/non-recurring decision category. A case study is used to illustrate key points.

Topics to be covered include:

  • Personal DTI versus business DSC
  • Approaches to imputing a personal living expense factor
  • Regulatory discussion of living expenses and capital gains (losses)
  • Analytical and conceptual issues:
    • Mixing two approaches to debt coverage
    • Using averages for debt coverage ratios
    • Recurring vs. non-recurring items
    • Where is the cash flow (if any) when a capital gain is listed?

Target Audience: Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, commercial lenders, credit analysts, loan review specialists, special assets officers, lending managers, and credit officers

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Options
Live presentation $330

Recording available through August 10, 2022

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GSB – Consumer Lending: Overview of Residential Mortgages and Home Equity Lending

For many consumers, their residential first mortgage is the largest debt obligation. So, even if you are making other types of consumer loans, it is important to understand mortgages — how they work, typical structures, and their impact on the credit profile of your borrower.  This program provides an overview of the entire mortgage process, including home equity lending. We’ll look at the business aspects of mortgages for banks, current trends in products offered, plus recent regulatory issues — most of which arose from the severe downturn in housing in 2008–2010.

This webinar will address:

  • Update on residential first mortgage products and housing in general
  • The roster of various players and participants in the mortgage process, including the government sponsored entities (GSEs)
  • The evolution of bank involvement and current practices (originate to keep, originate to sell, using a correspondent relationship and others)
  • Customer goals and process differences with purchase mortgages versus refinancing
  • Overview of formal underwriting steps
  • Single closing products or construction/permanent combined loans
  • Evolution and current trends in home equity lending
  • Example underwriting for home equity line of credit (HELOC)

Target Audience: Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, credit analysts, loan review specialists, consumer lending managers, and credit officers

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option
Live presentation $330

Recording available through July 12, 2022

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GSB – Consumer Lending: Overview of Credit History and the Role of Collateral

Determining recurring and sustainable income and cash flow are the important first step in consumer lending. Equally important are the applicant’s credit history and the collateral that will serve as a secondary source of repayment. This seminar is a practical guide to credit bureau reports, issues with collateral, and a brief overview of the regulatory, compliance, and fair lending environment. Because of the automated nature of much consumer lending, we’ll focus on recognizing exceptions to established policies and practices, and how to properly mitigate these risks, plus when it makes sense to ask for a policy waiver.

This program will address:

  • Myths and realities of credit bureau reports
  • Getting beyond weak excuses applicants give you for items of poor credit history
  • Regulatory publications that consumers can use to improve their credit
  • Framework for dealing with applicants with prior poor credit, even bankruptcy
  • Credit policy exceptions are serious business, and your reasons for granting an exception are equally serious
  • Overview of basic consume collateral
  • Other factors that can mitigate risks in the “big three” of debt-to-income, loan-to-value and credit history
  • Overview of the regulatory, compliance and fair lending environment

Target Audience: Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, credit analysts, loan review specialists, consumer lending managers, and credit officers

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option
Live presentation $330

Recording available through July 5, 2022

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GSB – Consumer Lending: Analyzing Personal Financial Statements and Loan Applications

This seminar is designed to strengthen your ability to analyze personal financial statements and loan applications within a simple, logical, and consistent framework. It provides the tools needed to build an assessment of an individual’s financial strength as a direct borrower, or as a guarantor of a business loan. This assessment provides the foundation for further cash flow analysis, generally from personal tax returns. Understanding that many banks use an automated process for consumer lending, this program will help participants understand what is happening in the background.

This program will review:

  • Current industry trends
  • Taking the loan application, getting the needed information, and issues with helping the customer complete the schedules
  • Beyond W-2’s and pay stubs: Tips on how to qualify income and verify employment
  • Personal financial statement (PFS) overview and eight items bankers should look for
  • “Three-step” approach to reviewing and analyzing a PFS in an efficient manner
  • Issues with getting complete and accurate information from the customer
  • The format does matter: Key features of bank-provided formats for a PFS compared to an accountant-prepared PFS, including assets and liabilities, reported income, and contingent liabilities
  • How to calculate adjusted net worth and outside net worth

Target Audience: Branch managers, consumer lenders, mortgage bankers, private bankers, small business lenders, credit analysts, loan review specialists, consumer lending managers, and credit officers

Presenter
Richard Hamm, Advantage Consulting & Training

Registration Option
Live presentation $330

Recording available through June 29, 2022

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