I am looking for a good defintion of what is condsidered and actual Troubled Debt Restructuring, what actually differenciates that from a simple loan modification, if it even does.

Any good articles or news agency guidelines defining and discussing these types of loans?

Are there any compliance issues to consider, besides the call reporting requirements and such?

Any 1099 requirements for forgiven prinicpal or earned interest?

FAS No. 15 & 114.

Yes, I have reviewed them, and they are not answering all of our questions. I am looking for additional resources people have found useful.

Here's a link to an FRB of Philadelphia publication that contains an article that mentions TDR. It was published in the first quarter 2008. http://www.philadelphiafed.org/src/srcinsights/srcinsights/2008/Insight1_08.pdf

Here's a link to the second quarter 2008 issue of the publication that contains a related article. http://www.philadelphiafed.org/src/srcinsights/srcinsights/2008/Insights2_08.pdf The article begins on page 4.

I hope these are helpful.

Restructuring of a debt is when most documentation errors are made. I don't mean the type of error that causes you to fail to comply with a regulation. I mean the type that will cause you to lose the loan and/or the collateral. You won't find this out until someone challenges you in court, like the trustee in bankruptcy, the IRS or another creditor.

I spent most of my time in "special assets" slaying dragons that were put in the file when the loan officer thought they were shoring up the loan. Instead they were screwing up the loan.

Make certain that you understand securitization concepts before you attempt a restructuring.

The OCC's Accounting Advisory Series provides some good examples of TDR's ... check out Topic 2A in their guide below ...

http://www.occ.gov/BAAS2007.pdf

Take a look at the call report instructions as well.

http://www.fdic.gov/regulations/resources/call/crinst/2008-03/308GLOSS032808.pdf

It is very important to follow the rules closely if the bank wants to account for a loan as a TDR. Otherwise you end up with a troubled debt that you restructured but it won't be a Troubled Debt Restructure!

These are all great resources, when used with FAS 15 and 114 put together a good picture... thanks for the links!