Credit Application - Bank Release Form: Fill & Download for Free

A co-op board package is used by co-op boards as a means of reviewing the financial and qualitative strength of a potential new shareholder (purchaser). Each co-op building in NYC will have a slightly different board package for purchasers (applicants) to complete and submit.The purchase application itself is provided by the managing agent. When you and your buyer’s agent have completed and thoroughly proofread the purchase application, it’s returned to the managing agent who will then review it for completeness and then forward it onto the members of the co-op board.Co-op board packages are extensive and ask for a tremendous amount of personal financial information. In addition to completing the ‘purchase application’ itself, the board package also requires submission of a number of documents including:Applicant Information SheetCredit Application / Release FormFully Executed Contract of SaleFinancial StatementBank Verification LettersAsset Verification DocumentationPersonal Reference LettersBusiness Reference LettersLandlord Reference LetterEmployment Verification LetterPrevious Tax ReturnsProof of Homeowners InsurancePhoto IdentificationCopy of the Loan Application & Commitment LetterCopy of the Aztec Recognition AgreementsSigned Building AcknowledgementsOnce you’ve prepared an original version of the completed coop purchase application, you will likely be required to prepare and submit a number of copies to the managing agent (in some cases, 7 or more).You can begin preparing your co-op board package after you’ve received a fully-executed version of the contract. Even though you will have to wait until you receive a copy of the mortgage commitment letter, application and Aztech recognition agreements before submitting the application, you should begin working on assembling the other elements as soon as possible!Save Thousands on your Purchase by Requesting a Buyer Closing Credit in NYCGiven the way commissions are structured in NYC (sellers pay same commission even if the buyer is unrepresented), it makes very little sense for you as a buyer to not work with a buyer’s agent who prepare your board package and offer you a fully legal buyer broker commission rebate.A buyer closing credit in NYC can also help reduce your closing costs.

What can landlords do to protect themselves from bad tenants?For the United States:Do your due diligence before signing a lease!Require a full Credit and Background check inclusive a Criminal and Civil court records.Require EVERY adult living in the property to submit to the credit and background check. No exceptions.Require EVERY adult living in the property to be on the lease. Adult kid living with the parents, yup, them too.Check against the sexual offender registry if the background check doesn’t include it.Verify all references and previous landlords. Where ever possible, look up the telephone numbers of the organizations, don’t just call the numbers off of the application.Verify income statements. Make them produce original pay stubs from the last 2 months AND contact the HR department from their employers. Again, look up the company’s phone number and make sure you aren’t calling a buddy of theirs. Be prepared to fax over a statement signed by the applicant that allows them to release the information to you.Get clear copies of identification and make sure who you are renting to is who applied. Identity theft is rampant.Verify the SSN against the credit report. Most credit reports will only show the last 4 digits, but make them produce an ID or the Social Security Card to verify. You may be talking to a Tom Jones, but make sure it is the same Tom Jones that made the credit application.Document emergency contacts. Very useful if there is a problem in the unit and you can’t get a hold of them, also very useful if they skip out with your furnace and major appliances.Ask questions about any anomalies and listen carefully to any explanations. If you aren’t 100% satisfied with the answers, don’t execute a lease.Require 100% of the deposit and 100% of 1st Months (and Last Months if you require it) rent in advance before executing the lease.Require all initial payments and deposits to be in cash or cash equivalent (US Postal Money Orders are my favorite, you can verify them on the phone in seconds by calling 866-459-7822). Be careful with certified cashier’s checks, they can easily be faked. Take it to your bank and make them call the issuing bank to verify authenticity before executing the lease.Never ever under any circumstances take a credit or debit card payment, they can be reversed even months later.Require the lease to be executed by all parties before you sign or initial even a single page.Only hand over keys after you have the fully executed lease in your possession.These steps will help uncover any ill-willed people. People still run into unexpected circumstances and problems can come up, but at least you can weed out the ones who intend to defraud you.How helpful are background and credit checks in determining what a tenant will be like?The background and credit checks are only 1/2 of the story. The rest of the investigation described above is required to form a complete picture. The complete picture is the only way to gain a reliable idea of if someone will be a good tenant or a bad tenant.As far as the information in the reports, well it’s pretty good at telling you if someone is in deep credit trouble, has a habit of getting evicted, or thinks that felonies are fun, so you know who the bad eggs are. Unfortunately it can’t show you the people who are going to go bad in the future or worse, the ones that have been bad for a long time but are very good at making sure it doesn’t end up in the reports.

The Background of the Basel norms: (Why it come into picture)On 26 June 1974, a number of banks had released payment of Deutsche Marks (DEM - German Currency at that time) to Herstatt ( Based out of Cologne, Germany) in Frankfurt in exchange for US Dollars (USD) that was to be delivered in New York. Because of time-zone differences, Herstatt ceased operations between the times of the respective payments. German regulators forced the troubled Bank Herstatt into liquidation.The counter party banks did not receive their USD payments. Responding to the cross-jurisdictional implications of the Herstatt debacle, the G-10 countries, Spain and Luxembourg formed a standing committee in 1974 under the auspices of the Bank for International Settlements (BIS), called the Basel Committee on Banking Supervision. Since BIS is headquartered in Basel, this committee got its name from there. The committee comprises representatives from central banks and regulatory authorities.Basel I:In 1988, the Basel Committee on Banking Supervision (BCBS) in Basel, Switzerland, published a set of minimum capital requirements for banks.These were known as Basel I. It focused almost entirely on credit risk (default risk) - the risk of counter party failure. It defined capital requirement and structure of risk weights for banks.Under these norms:Assets of banks were classified and grouped in five categories according to credit risk, carrying risk weights of 0%(Cash, Bullion, Home Country Debt Like Treasuries), 10, 20, 50 and100% and no rating. Banks with an international presence are required to hold capital equal to 8% of their risk-weighted assets (RWA) - At least, 4% in Tier I Capital (Equity Capital + retained earnings) and more than 8% in Tier I and Tier II Capital. Target - By 1992.One of the major role of Basel norms is to standardize the banking practice across all countries. However, there are major problems with definition of Capital and Differential Risk Weights to Assets across countries, like Basel standards are computed on the basis of book-value accounting measures of capital, not market values. Accounting practices vary significantly across the G-10 countries and often produce results that differ markedly from market assessments.Other problem was that the risk weights do not attempt to take account of risks other than credit risk, viz., market risks, liquidity risk and operational risks that may be important sources of insolvency exposure for banks.Basel II:So, Basel II was introduced in 2004, laid down guidelines for capital adequacy (with more refined definitions), risk management (Market Risk and Operational Risk) and disclosure requirements.- use of external ratings agencies to set the risk weights for corporate, bank and sovereign claims.- Operational risk has been defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk, but excludes strategic and reputation risk, whereby legal risk includes exposures to fines, penalties, or punitive damages resulting from supervisory actions, as well as private settlements. There are complex methods to calculate this risk.- disclosure requirements allow market participants assess the capital adequacy of the institution based on information on the scope of application, capital, risk exposures, risk assessment processes, etc.Basel III:It is widely felt that the shortcoming in Basel II norms is what led to the global financial crisis of 2008. That is because Basel II did not have any explicit regulation on the debt that banks could take on their books, and focused more on individual financial institutions, while ignoring systemic risk. To ensure that banks don’t take on excessive debt, and that they don’t rely too much on short term funds, Basel III norms were proposed in 2010.- The guidelines aim to promote a more resilient banking system by focusing on four vital banking parameters viz. capital, leverage, funding and liquidity.- Requirements for common equity and Tier 1 capital will be 4.5% and 6%, respectively.- The liquidity coverage ratio(LCR) will require banks to hold a buffer of high quality liquid assets sufficient to deal with the cash outflows encountered in an acute short term stress scenario as specified by supervisors. The minimumLCR requirement will be to reach 100% on 1 January 2019. This is to prevent situations like "Bank Run".- Leverage Ratio > 3%:The leverage ratio was calculated by dividing Tier 1 capital by the bank's average total consolidated assets;....more to follow