Pub. 2 2012-2013 Issue 5

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S March • April 2013 19 did not have sufficient income to repay the mortgage loan. • Qualified Mortgages providing a safe harbor for lenders. With respect to Qualified Mortgages that are lower-priced (generally because the borrower presents fewer credit risks), lenders have a safe harbor against challenges by borrowers claiming that a lender did not comply with the ability-to-repay rules. Borrowers are not precluded from challenging lenders if the loan does not otherwise meet the definition of a Qualified Mortgage or for violating any other federal consumer protection. Proposed Ability-to-Repay Amendments The CFPB also proposed certain amendments to the ability-to- repay rule that include, notably, a provision to give Qualified Mortgage status to mortgage loans originated by smaller credi- tors, such as community banks and credit unions which originate and hold mortgage loans in their own portfolios. The CFPB would like to finalize these proposals this year and have them go into effect simultaneous with the effectiveness of the ability-to-repay rule in January 2014. Q contributions to the bank’s success. The bank is positioned to respond to the low probability/high impact scenario of an untimely death by providing a source of financial security to the executive’s family. Other Considerations in Constructing a BOLI Portfolio The construction of a BOLI portfolio does not lend itself to a cookie-cutter approach. The bank’s goals, time horizons, financial metrics, capital position, risk tolerance, tax position, corporate structure, business model, and other considerations must be evaluated. Once this is done from the perspective of a potential BOLI purchase, BOLI products must be evaluated for suitability. Product considerations include product type (general account, hybrid, or separate account), credit rat- ings, guarantees, liquidity/transfer restrictions, rate history, market commitment, product rate crediting methodology and trends, etc. Only then can a portfolio be constructed using the appropriate combination of carriers and products that will align with the bank’s goals and requirements. Q Mr. Bratten can be reached at 303-482-1844, or by email at rbratten@bfsgroup. com. Visit their website at www.bfsgroup.com to view a brief video about BFS Group. Q BOLI – continued Welcome to Denver. Ernie Panasci Managing Partner 303.376.8402 epanasci@stinson.com 5613 DTC Parkway, Suite 970 Greenwood Village, CO 80111 Stinson is proud to announce the addition of partners Ernie Panasci, Deborah Bayles, Zsolt Bessko, Kristin Godfrey and Perry Glantz, along with four associate attorneys in our new Denver Tech Center office. Our new partners represent many financial institutions throughout the Rocky Mountain and Southwest regions. They also offer legal counseling in corporate, securities, M&A, litigation, IP and real estate matters. Please join us in welcoming our Denver team. Stinson.com Denver Kansas City St. Louis Phoenix Washington, D.C. Omaha Wichita Overland Park Jefferson City Decatur The choice of a lawyer is important and should not be based solely on advertisements. Mark Goldschmidt and Shawn Turner are securities and M&A attorneys in the fi rm’s Banking and Financial Institutions Group. Patton Boggs LLP is a Washington, DC headquartered international law fi rm and represents community and regional bank- ing and fi nancial institutions in Colorado and nationally.