To Secure or Not Secure
Two aspects of a bond that drive loanable value.
Daily Double: True or False: it is impossible to hum while holding your nose (no cheating - we're watching).
Credit rating and maturity
True
Name of the interest rate derivative where a call is bought and a put is sold to create a defined range for a borrower to float in.
COLLAR
New advance rate for "standard" purchase money primary residence.
75%
One of CNB’s favorite things, fancy term developers insist you use when discussing personal liability for commercial real estate transactions.
This popular product was invented in Italy during WWII when hazelnuts were mixed into chocolate in order to extend chocolate rations.
RECOURSE
Nutella
Primary collateral in a life insurance premium finance deal.
CASH SURRENDER VALUE OF POLICY
3 things that will impact advance rate on equities.
MARKET CAP, SHARE PRICE, TYPE OF INVESTMENT VEHICLE, SECTOR, GEORGRAPHY
Title of this category is a play on a lyric of this artist used in her 2014 hit album.
Daily Double: For a floating rate line, the minimum pricing floor.
Taylor Swift (Shake it Off)
2%
Security that serves as benchmark for mortgage pricing.
Daily Double - within 5bps, where is that rate today?
10yr Treasury
0.69%
Name 1 of our 2 favorite commercial properties types and 1 of our 2 least favorite commercial property types.
Daily Double: Band responsible for hits like Proud Mary, Bad Moon Rising and Fortunate Son.
INDUSTRIAL OR MULTIFAMILY; HOSPITALITY OR RETAIL
CREdence Clearwater Revival
What is potpourri?
Daily Double: Schedule on the tax return where K1 income is detailed.
Mixture of dried, naturally fragrant plant materials; a mixture of things
SCHEDULE E
Top 3 pieces of information that need to be gathered for personal credit request.
Daily Double Scrabble: the letters in this credit leader's name produce two 68-point words: ordinary and nondairy.
PFS, 3 YRS TAXES, LIQUIDITY VERIFICATION
Indrani Roy
Two of the things are required to facilitate a swap?
Daily Double: the world's most commonly shoplifted food item is a) bread, b) cheese, c) candy, d) apples
UNDERWRITE CREDIT EXPOSURE, AMEND DOCUMENTS TO INCLUDE SWAP LANGUAGE, EXECUTE ISDA
B) Cheese
Name a COI or two you can call on to generate mortgage business
Daily Double: Typically, the three largest borrower costs associated with closing a mortgage.
RE agent, builder, title company
Recordation, title, appraisal
Measurement of the amount of cash flow generated by an investment property after operating expenses, but before principal and interest payments, capital expenditures, depreciation, and amortization.
NET OPERATING INCOME
Name of our leasing subsidiary
Daily Double: 3 things that can be financed through our leasing subsidiary?
FIRST AMERICAN EQUIPMENT FINANCE
AIRCRAFT, VEHICLES, BUILDOUT, MANUFACTURING EQUIPMENT, MEDICAL EQUIPMENT, TECHNOLOGY, SOFTWARE AND NETWORKING EQUIPMENT
As an initial screen, a borrower should meet at least one of these two asset tests to be considered for unsecured credit.
1.5X UNECUMBERED LIQUIDITY and 2X REAL ESTATE EQUITY
Prime today and within 5bps, 30day Libor today.
Daily Double: benchmark rate likely to replace Libor
3.25% AND .173%
SOFR
For this type and size of a real estate financing will CNB pick up all the closing costs.
Group who sang Jump Around, released in 1989.
HELOC < $500M
House of Pain
The name of CNB's fanciest CREdit card
Daily Double: CNB lending product designed for income producing 1-4 unit personal real estate.
Crystal Card
IORR
Document used internally to initiate underwriting process.
Daily Double: This Captain of Credit is a Mayflower baby as a direct descendant of William Bradford, the Governor of Plymouth Colony.
NEW LOAN FACILITY REQUEST FORM
Jim Fothergill
A commitment that is more profitable for the bank than a committed line where the bank has the ability to later restrict access to unused capacity?
Daily Double: This credit colleague financed the largest single comic book acquisition in history
CANCELABLE AT WILL
John Gibbons
What does ECP stand for and why does it matter?
Daily Double: These levels of assets qualify an individual as an ECP
ELIGIBLE CONTRACT PARTICIPANT, WHICH YOU NEED TO BE TO QUALIFY TO ENTER INTO A SWAP
$5MM of assets for an individual ($10MM for entities)
What's the most expensive home you've ever been in?
Daily Double: one of three ways to qualify for the highest relationship pricing discount
…..
$250M CRISP, $10MM deposits or $26MM AUM
Covenant that captures income or free cash flow divided by principal and interest payments on loans?
Daily Double: CNB’s standard for this covenant is ____ or better.
DEBT SERVICE COVERAGE
1.35x
Assuming a strong risk rating and few exceptions, credit authorities of Ken Fratto and Jim Fothergill.
Daily Double: the term used to describe a flock of crows
$5MM and $15MM
Murder