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Flashcards in ORE Deck (17):
1

Bad Debts

Matured obligations due a bank on which the interest is past due and unpaid for 6 months, unless the debts are well secured and in the process of collection

2

Methods a bank may use to remove a borrower and acquire ownership of the property?

Deed-in-Lieu of forclosure and forclosure

3

ORE should be recorded on the bank's balance sheet as?

Fair value minus the cost to sell

4

What is it called when ORE is acquired by lender in satisfaction or partial satisfaction of a debt and held until sold?

Debts previously contracted

5

Most common methods used when bank finances ORE.

Full Accrual - bank may recognize immediately entire profit. Deposit Method - requires cash received as a down payment to be accounted for as a liability.

6

Legal proceeding governed by the individual state's statutory law?

Forclosure

7

These ORE expenses may be capitalized

If property is under contruction, tax and insurance. Also, legal fees paid for purposes that clearly enhance value of property.

8

SFAS 66 down payment requirements

Land 20 - 25% Commercial & Industrial 10 - 25% Multifamily Residential 10 - 25% Single Family Residential 5 - 10%

9

This instrument helps establish the legal holding period of ORE.

Deed

10

Reg Z

Truth in lending act - Pertains to credit term disclosures that creditors must provide to consumer loan borrowers.

11

Reg H

Flood Disaster Protection Act - State Member Banks may not make loans secured by property located in special flood hazard area unless the property is covered by flood insurance.

12

Reg X

Real Estate Settlement Procedures Act - Requires lenders to provide borrowers with disclosures regarding the nature and cost of real estate settlement process.

13

Reg DD

Truth in Savings Act - created to help consumers make better informed decision about accounts at depository institutions through use of uniform disclosures.

14

Reg CC

Expedited Funds Availability Act - passed to ensure that banks don't hold deposit fund for excessive periods of time.

15

Reg E

Electronic Funds Transfer Act - enacted to ensure that consumers are treated fairly when conducting ATM transactions or pre-authorized debit/credits

16

Reg P

Privacy of Consumer Financial Info - Reg P implements the regulatory requirements of the GLBA privacy provisions. Requires institutions to provide privacy notices to consumers.

17

Reg B

Equal Credit Opportunity Act - prevents discrimination in lending because of a person's race, religion, gender, ageetc.