FBC » Topics » Capitalization of Loan Fees and Costs

These excerpts taken from the FBC 10-K filed Mar 13, 2009.
Capitalization of Loan Fees and Costs
 
Loan origination fees and costs are capitalized and recorded as an adjustment to the basis of the individual loans originated. These fees and costs are amortized or accreted into income as an adjustment to the loan yield over the life of the loan or expensed when the loan is sold. Accordingly, during 2008, we deferred $117.3 million of gross loan origination costs, while during 2007 and 2006 the deferred expenses totaled $94.9 million and $93.5 million, respectively. These costs have not been offset by the revenue deferred for SFAS 91 purposes. During the year to date in 2008 and the years 2007 and 2006, we deferred $90.9 million, $76.5 million, and $43.4 million in qualifying loan fee revenue, respectively. For further information, see “Loan Fees and Charges,” above. Effective January 1, 2009, we elected to account for substantially all of our mortgage loans available-for-sale using the fair value method and therefore will no longer apply SFAS 91 to those loans.
 
Capitalization
of Loan Fees and Costs



 



Loan origination fees and costs are capitalized and recorded as
an adjustment to the basis of the individual loans originated.
These fees and costs are amortized or accreted into income as an
adjustment to the loan yield over the life of the loan or
expensed when the loan is sold. Accordingly, during 2008, we
deferred $117.3 million of gross loan origination costs,
while during 2007 and 2006 the deferred expenses totaled
$94.9 million and $93.5 million, respectively. These
costs have not been offset by the revenue deferred for
SFAS 91 purposes. During the year to date in 2008 and the
years 2007 and 2006, we deferred $90.9 million,
$76.5 million, and $43.4 million in qualifying loan
fee revenue, respectively. For further information, see
“Loan Fees and Charges,” above. Effective
January 1, 2009, we elected to account for substantially
all of our mortgage loans available-for-sale using the fair
value method and therefore will no longer apply SFAS 91 to
those loans.


 




These excerpts taken from the FBC 10-K filed Mar 13, 2008.
Capitalization of Loan Fees and Costs
 
Loan origination fees and costs are capitalized and recorded as an adjustment to the basis of the individual loans originated. These fees and costs are amortized or accreted into income as an adjustment to the loan yield over the life of the loan or expensed when the loan is sold. Accordingly, during 2007, we deferred $94.9 million of gross loan origination costs, while during 2006 and 2005 the deferred expenses totaled $93.5 million and $117.1 million, respectively. These costs have not been offset by the revenue deferred for SFAS 91 purposes. During the year to date in 2007 and the years 2006 and 2005, we deferred $76.5 million, $43.4 million, and $59.0 million in qualifying loan fee revenue, respectively. For further information, see “Loan Fees and Charges,” above.
 
On a per loan basis, the cost deferrals totaled $775, $992, and $816 during 2007, 2006, and 2005, respectively. Net of deferred fee income, the cost deferred per loan totaled $151, $531, and $405 for years


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2007, 2006, and 2005, respectively. On a per loan basis, the cost deferrals for commissions totaled $678, $788, and $566 during 2007, 2006, and 2005, respectively.
 
Capitalization
of Loan Fees and Costs



 



Loan origination fees and costs are capitalized and recorded as
an adjustment to the basis of the individual loans originated.
These fees and costs are amortized or accreted into income as an
adjustment to the loan yield over the life of the loan or
expensed when the loan is sold. Accordingly, during 2007, we
deferred $94.9 million of gross loan origination costs,
while during 2006 and 2005 the deferred expenses totaled
$93.5 million and $117.1 million, respectively. These
costs have not been offset by the revenue deferred for
SFAS 91 purposes. During the year to date in 2007 and the
years 2006 and 2005, we deferred $76.5 million,
$43.4 million, and $59.0 million in qualifying loan
fee revenue, respectively. For further information, see
“Loan Fees and Charges,” above.


 



On a per loan basis, the cost deferrals totaled $775, $992, and
$816 during 2007, 2006, and 2005, respectively. Net of deferred
fee income, the cost deferred per loan totaled $151, $531, and
$405 for years





39





Table of Contents






2007, 2006, and 2005, respectively. On a per loan basis, the
cost deferrals for commissions totaled $678, $788, and $566
during 2007, 2006, and 2005, respectively.


 




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