19
Some of the deferred costs recorded in the UFB ledger
accounts were based on standard cost surveys performed by UFB for
the purpose of complying with SFAS 91. Different standard cost
amounts were determined by UFB for subcategories of loans within
a general category. For example, with respect to consumer loans
originated in 1991 and 1992, different standard cost amounts were
determined for unsecured consumer loans, secured consumer loans
for which UFSB performed an appraisal, and secured consumer loans
for which an outside third party performed an appraisal. Except
with respect to records maintained in connection with its
standard cost surveys, UFB did not maintain time records
reflecting the amount of time UFSB employees spent working on
individual consumer lending transactions. UFB likewise did not
maintain records summarizing actual expenditures for items such
as supplies, telephone calls, credit reports, property reports,
title searches, recording fees and attorney's fees with respect
to individual consumer lending transactions.
The fees and costs recorded in the UFB ledger accounts were
deferred and recognized as a component of interest income over
the estimated expected life (not the contractual life) of the
loans to which they related in accordance with SFAS 91. For
Federal income tax purposes, the amounts recorded in the UFB
ledger accounts were reported by UFB as current items of income
or expense. The Schedules M-1 filed with UFB's Forms 1120 for
the periods in question reflect that the net amount of the costs
and fees recorded in the UFB ledger accounts was deferred and
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011