USA Can Cash Back be considered a loan originatoin expense and amortized?

[Cryslea]

I work for a bank. We are currently offering some cash back incentives for coming and getting a car loan from us. Can those incentives/loan cost be amortized as well?

 

[kirby]

Read the FDIC Call Report Instruction Glossary Section on Loan Fees. When I read it, there were sections that seemed clear that the answer was no and other sections were vague. Also, consider how much the loan booking area and the accounting area will hate you for all the extra work involved for a large volume of small dollar transactions that have to be entered and amortized and and and.....
Also, better get approval from your regulator to avoid having to restate the Call Report for this if they disagree.

 

[Cryslea]

Read the FDIC Call Report Instruction Glossary Section on Loan Fees. Also, consider how much the loan booking area and the accounting area will hate you for all the extra work involved for a large volume of small dollar transactions.

Thanks, I will Read and see what I can determine.