May 8, 2015
By Bob Coleman
Editor, Feedback Friday
Two questions this week, both from Coleman Certified Training Students for Coleman Faculty Instructor Lance Sexton
The first is to Coleman faculty instructor Lance Sexton from his Loan Closing Training.
Hi Lance – I do have one other question regarding Life Insurance. We obtain the Policy, Assignment, and also a Verification of Life Insurance. My question is regarding the premium payments. Currently we require the following….”if the life insurance policy is a new policy, we require the premiums to have been paid for a minimum of one year. If the policy is an existing policy, confirmation is needed to show that premiums have been paid for a minimum of three months from the closing date.” Is there anything in the SOP that speaks to this or requires this?
Lance says, “There is nothing in the SOP that covers that. I think you are using a best practice.”
I am currently participating in the SBA 7a loan closer training and have a question regarding a specific closing situation that I was hoping you could give some clarification. It is regarding leasehold improvements. We currently obtain the attached forms…Assignment of Lease (Lessee’s Interest), Landlord Consent and Landlord Waiver. Is the Landlord Consent necessary or just the Landlord Waiver as per the SOP? Any clarification would be great as we receive a good portion of push back on the Landlord Consent.
Lance says, “The assignment of lease and the landlord waiver meets the 5010 requirements. I think that you will be okay without the landlord consent. The only way that you need the consent is if the authorization requires it.”