20 amortized pursuant to SFAS 91 for financial accounting purposes, and that such costs and fees were currently reported as income or deducted as expenses for Federal income tax purposes. Respondent calculated the adjustments in issue in the UFB cases based solely on the balances in some of the UFB fee and cost ledger accounts. The fees and costs reflected in those accounts were included in income and deducted by UFB on its Forms 1120 for the years received or incurred. Respondent reduced the adjustments so determined by an allowance for amortization, which was calculated using a half-year convention and was based on an estimated loan life of 3 years. The amortization deduction permitted by respondent differs from the amortization taken into account by UFB as a component of interest income in accordance with SFAS 91. The costs at issue in the UFB cases include only costs incurred by UFSB with respect to the origination of consumer loans and specifically include only standard costs paid by UFSB to record security interests and standard costs paid to third parties for property reports, credit reports, and appraisals. Respondent made no adjustments with respect to other UFSB loan categories, such as commercial loans and residential and commercial mortgage loans. The costs at issue in the UFB cases do not include any costs incurred in connection with UFSB's unsuccessful loan efforts (i.e., where a loan was not originated) or any costs incurred following a loan's origination by UFSB. The following table reflects the loan origination costsPage: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: May 25, 2011