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SBA Hot Topic Tuesday — Common Errors SBA Lenders Committed Last Fiscal Year

November 21, 2017

By Bob Coleman
Editor, SBA Hot Topic Tuesday

SBA Hot Topic Tuesday — Common Errors SBA Lenders Committed Last Fiscal Year

Following is a list of lender errors uncovered in SBA’s PARRiS Reviews last fiscal year.

Loan Underwriting

  • Discrepancy between Loan Authorization and Credit Memo
  • Failure to Include Industry Analysis

Loan Closing

  • Stand-Stand by Note not obtained
  • Lease Term Conditions not met
  • Assignment of Lease not located
  • Construction Performance Bond not obtained
  • Secondary Market Sales before full disbursement
  • Child Support Verification not obtained
  • Landlord Waiver not obtained
  • Inaccurate certificates of insurance

Loan Servicing

  • On Going– Flood and/or Hazard Insurance
  • Annual Financial Statements Not Obtained and Analyzed
  • On Going– Property Taxes Policy/Procedures
  • Site Visit Not Conducted
  • Liquidation Practices
  • Recovery Remittance Timely Submission/Wrap Up Report

Liquidation

  • Recovery Remittance
  • Timely Submission of Wrap Up Report

Source: SBA

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