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Making Headlines – Credit Trends and Risk Management Take Center Stage
As credit stresses grow and borrowers face cash flow stress, lower income, and higher costs, financial institutions should consider adjusting their strategies for underwriting, managing, and monitoring credit risk.
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What do you call your BSA Program? Moving from BSA to AML/CFT
Many examiners now use the term Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) instead of “BSA/AML” to reference this collection of laws and regulations, to align with the AML Act.
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Accounting Considerations for Visa Class B Conversions
This blog was authored by my colleague Scott Klitsch, the managing principal of the financial services quality group. Many financial institutions hold Visa Class B shares which were created in 2007 as part of the Visa IPO process. Class B shares were created to provide protection to Class A and C shares from certain litigation. […]
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Proposed Regulations Clarify Bad Debt Deductions for Regulated Financial Companies
This blog was authored by my colleague Trevor Huisman, a tax principal within our financial services group. On December 27, 2023, the IRS and Treasury released proposed regulations (REG-121010-17) that would update the standard used to determine when a debt instrument held by a regulated financial company or group would be considered worthless. The proposed […]
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Proposed Legislation Could Impact Financial Services Company ERC Filings
Legislation released by the House Ways and Means Committee last week proposes a number of changes, notably a provision that would end ERC filing substantially earlier than the initial deadline. This would limit the ability for financial services companies who have not yet filed to claim the credit. Under this proposal, all claims (2020 and […]
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Revisiting Loan Portfolio Management Fundamentals
This blog was authored by my colleague Erica Crain, a principal within our financial services group. As the economic environment shifts with increased interest rates and credit weakening projected while liquidity sources are highly scrutinized, it is important for financial institutions to revisit the significance of loan portfolio management fundamentals. Effective loan portfolio management involves […]
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ICYMI- Fannie Mae Implements Changes to Prefunding and Post-Funding QC Requirements
In March 2023, Fannie Mae released a Seller Guide Announcement introducing upcoming policy enhancements to the prefunding and post-closing quality control review process. These changes include accelerating the post-closing QC review cycle timeline and establishing minimum prefunding volume requirements. Though lenders were encouraged to adopt the new guidelines immediately, the changes became mandatory on September […]
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The Relationship Between Turnover and Internal Control Weaknesses
This blog was authored by my colleague Folashade Abiola-Banjac, a principal within our financial services forensic group. Everywhere you turn you see headlines of fraud and misappropriation of assets happening at all levels of financial institutions. However, turnover and its relationship to internal control weaknesses is a challenge to understand. Internal controls only work if […]
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Impacts of the Initial Adoption of CECL
This blog was drafted by my colleague Tessa Brockie, a manager in our Financial Services Group. At the start of 2023, the vast majority of financial institutions adopted CECL. The impact of adoption varied for institutions based on asset size as well as the makeup of the loan portfolio. Although there are conclusions you can […]
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Valuation Considerations for Financial Institutions
This blog was authored by my colleague Gwendolyn Duda, a signing director in our valuations, forensics, litigation, and investigations (VFLI) group. In a time of competitive economic conditions, valuations of financial institutions are increasingly instrumental for supporting business strategy decisions. Financial institutions continue to face near-term headwinds with rising inflation, rising interest rates leading to […]