Banking & Commercial Lending | News & Events

Mortgage Registration Tax in Minnesota on Mortgage Modifications

When filing a mortgage, determining the amount of mortgage registration tax (“MRT”) is relatively simple.  Except in the counties of Ramsey and Hennepin, MRT is calculated by simply multiplying the amount of the debt secured by the mortgage by .0023.  In Ramsey and Hennepin,… Read more »

MBA Article – Dos and Don’ts of Loan Participations

Loan participations have been a valuable tool in commercial lending for years.  This is true primarily because they allow banks to participate in transactions that would otherwise present too much risk for them alone, or allow them to purchase or sell an interest in a transaction necessary to… Read more »

CFPB – Small Servicers, Published in MBA News

The September/October 2014 issue of MBA News published our following article:   In January of 2013, the Consumer Financial Protection Bureau (“CFPB”) issued new rules implementing various provisions of the Real Estate Settlement Procedures Act and the Truth in Lending Act… Read more »

2014 Legislative Session Update

This year the Minnesota legislature made some significant changes to laws which affect banking and lending. The following is a brief summary of some noteworthy changes adopted by the legislature during its most recent session: 1. Minnesota Public Benefit Corporation Act Effective January 1, 2015,… Read more »

Foreclosures and Loan Workouts Requiring 1099 Reporting

In 2013 the economy has shown signs of improvement, and for financial institutions this has resulted in an increase of new loans, and, in general, a decrease in real estate foreclosures and loan workouts. As we head into tax season it remains important to remember that foreclosures and workouts… Read more »

Beyond Building Requirements: Accessibility under The Americans with Disabilities Act

A reference to the Americans with Disabilities Act (ADA) tends to bring to mind building accessibility requirements, like ramps, and other adjustments that make a building more accessible. However, the ADA is really much broader as it prohibits discrimination against persons with all types of… Read more »

Foreclosing SBA 504 Mortgages

As many banking institutions continue to react to the effects of the economy, many are faced with the need to foreclose commercial mortgages originated under the U.S. Small Business Administration (“SBA”) 504 loan program. In addition to standard banking practice and applicable state… Read more »

Marital Purpose Statements For Wisconsin Residents

Many lenders are aware that Wisconsin law requires them to obtain a marital purpose statement when making a loan to a Wisconsin resident.  However, there is a significant amount of uncertainty in determining how the marital purpose statement should be worded, how it can be documented, who… Read more »

Reaffirmation Agreements

When a borrower files for relief under Chapter 7 of the United States Bankruptcy Code, the borrower is typically entitled to a discharge of the borrower’s debts. One of the exceptions to discharge occurs when the creditor and borrower voluntarily agree to enter into a reaffirmation agreement.… Read more »

Foreclosing a Perfected Security Interest in LLC Membership Units/Interests

In our most recent edition of The Advisor, we discussed the process for a lender to obtain and perfect a security interest in membership units/interests in a limited liability company (“LLC”), as collateral for a loan. In this edition, we will address the lender’s rights to… Read more »

Reporting Acquired or Abandoned Secured Property and Cancelled Debts: FAQS About 1099-A & 1099-C

Now, more than in recent history, banks are faced with the realities of foreclosed, repossessed, or surrendered collateral, as well as forgiven or cancelled indebtedness. Accordingly, it is important that banks understand the Internal Revenue Service’s related reporting requirements. The… Read more »

Acceptance of Partial Payments After Demand

The question is often raised: “After sending a default notice demanding payment, can a lender accept a partial payment?” The easy answer is that a lender can, of course, accept a partial payment. However, there are potential ramifications of accepting a partial payment after making… Read more »

Garnishment Update: Breaking News!

In our recent Garnishment Update, which was circulated on March 30, 2010, we discussed the issues related to garnishments on joint accounts in light of the case of Enright v. Lehman. On April 22, 2010, the Minnesota Supreme Court issued a decision in the case of Savig v. First National Bank of… Read more »

Garnishment Update

The Minnesota state legislature made a number of modifications to the garnishment section of the Minnesota Statutes. The legislature intended to make the garnishment process easier and more understandable for the creditor, debtor, and garnishee. In doing so, several changes were made to the… Read more »