What You Need to Know about SBA’s new SOP 5057
Friday, March 1, 2013
2:00 p.m. to 3:15 p.m. Eastern
Complimentary Coleman Report News of the Day Talk Show with Bob Coleman and Charles Green: 1:50 p.m. to 2:00 p.m.
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This is the first major revision to the SOP since 1999. SBA is doing away with separate servicing and liquidation manuals, opting to combine them into one.
Join national SBA policy expert and professional Coleman webinar instructor, Lisa Lerner , as she guides you through the many changes taking effect that day.
Here is a peak of some of the changes:
Changes Related to SBA 7(a) Loan Servicing
Seasoned Loan Definition: The definition of a “seasoned loan” is the mirror opposite of the definition pertaining to when there has been an “early default” on a loan, and is now more closely aligned to the industry definition of a seasoned loan as one that that has paid as agreed for one year.
Environmental Risk Management: SBA’s environmental risk management guidelines have been expanded to address issues pertaining to loans in regular servicing status.
Loan Action Justification and Documentation: All servicing decisions must be justified and documented in a loan action record that is independent of any document prepared by a senior lienholder or any other person with a conflict of interest.
Subordination in Conjunction with SBA Loan Assumption: When an SBA loan is assumed, it may be subordinated to the acquisition loan up to the documented amount of any funds used to maintain or increase the value of the collateral.
Changes Related to SBA 7(a) Liquidation Policy and Procedures
Financial Hardship: To help ensure that decisions pertaining to financial hardship are uniform, based on objective criteria, and applied consistently, the SOP includes a definition of the term “financial hardship” that utilizes the Collection Financial Standards published by the Internal Revenue Service.
Protective Bids: SBA policy with regard to when a protective bid should and should not be entered at a senior lienholder’s foreclosure sale has been modified to include a “prudent lender” exception based on circumstances that are not reflected in the appraisal but are documented in the loan file.
Release of Redemption Rights: The redemption rights associated with an SBA loan may only be released after confirmation of the foreclosure sale in exchange for cash in an amount approximately equal to 50% of the property’s recoverable value.
When Collateral Must be Liquidated: The recoverable value dollar threshold for when collateral must be liquidated (and cannot be abandoned) has been raised from $2,500 to $5,000 for personal property and $5,000 to $10,000 for real property.
Compromise: The compromise chapter includes guidelines for compromises involving going concerns; adds SBA program integrity as a factor that must be considered when determining whether a compromise offer is sufficient; and recommends the use of a mutual release when the compromise amount is paid in full.
Recoverable Expenses: Lenders may only submit requests for approval or reimbursement of recoverable expenses when the lender submits its loan guaranty purchase request, when the recoverable expenses total $5,000 or more per loan, or when the lender submits its wrap-up report.
Repair Estimate: Lenders are encouraged to acknowledge errors and to include a repair estimate in their purchase package in order to expedite the repair and guaranty purchase process.
Use of Debarred or Suspended Loan Agent: The SOP specifically states that a full denial of liability is almost always justified if the lender placed SBA at risk by making a loan based on a loan package prepared by an agent who was suspended or debarred by SBA or another federal agency, unless the lender provides credible evidence that the business failed for totally unrelated reasons.
You will learn:
The changes in the new SOP 5057 you need to know to service your SBA loans.
The changes in the new SOP 5057 you need to know to liquidate your SBA loans.
The changes in the new SOP 5057 that affect the underwriting of your SBA loans.
This webinar is rated “INTERMEDIATE” for the attendees.
Coleman’s Webinar level of instruction guide:
ELEMENTARY — The webinar assumes the audience has no experience in the topic.
BASIC — The webinar is for small business lenders who have some experience in the topic. The webinar is designed as the Topical 101 course. This is the appropriate level of instruction for managers who oversee the function.
INTERMEDIATE — The webinar solves an unique problem for the small business lending professional. A strong working knowledge of the subject matter is recommended.
EXPERT — The webinar discusses detailed, technical and advanced topics for the well-seasoned professional. A strong working knowledge of the subject matter is a must.
Who should attend
Small Business Bankers
SBA Loan Packagers
SBA Loan Closers
Small Business Banking Managers
Small Business Loan Underwriters
Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for your regulators. Also, this documents the answer for SBA’s Review question of continuing staff education.
We will automatically forward a certificate of participation for those who are registered to attend the webinar via Go-to-Webinar.
If you have purchased the unlimited site license and would like certificates for all who attend, please forward their names and email addresses to email@example.com. She will email the certificates
Join our Expert Instructor:
Lisa G. Lerner
Enhanced Consultive Solutions, LLC (“ECS”)
Ms. Lerner’s professional experience spans over 28 years in the financial arena, with strong expertise in Small Business Administration lending, most recently operating ECS since 2004. ECS is an agency (SBA) approved lender service provider and provides guidance, and technical support to small and mid- size lenders. She and her husband, Nelson, are also certified pet therapy teams with their dogs volunteering with the nonprofit organization, Gabriel’s Angels- “Pets helping kids.”
Bob Coleman is the Author of “Money Money Everywhere and Not a Drop for Main Street“. Coleman is the Editor of the Coleman Report, a trade newsletter for small business bankers. He is the nationally recognized expert on small business banking. He has appeared on Fox Business News and CNN and has been quoted by most major financial media outlets including the Wall Street Journal, New York Times and Bloomberg. He has spoken at numerous small business banking events across the United States, including international engagements. Coleman has a B.A. in Medieval History from the University of California Santa Barbara and a M.B.A. in Real Estate Finance from the University of Southern California.
About Coleman Webinars
Coleman is the largest producer of small business banking webinars in the country, all taught by the best experts in our industry.
Not only our instructors chosen with care, they are excellent teachers of their craft.
Coleman’s Webinars provide 75 minutes of highly specialized information, access to industry experts, live Q&A, and step-by-step “how-to’s” on a variety of topics relevant to today’s small business banker.
Two monthly SBA topical webinars are conducted by John Dunn and Lisa Lerner, our national professional SBA instructors.
Dunn and Lerner’s presentations solve pressing problems facing today’s SBA lending professionals.
Every month, the author of the bestselling “The SBA Loan Book” and the just released book, “Get Financing Now,” Charles Greene presents a program on a topical small business lending underwriting subject.
We rotate our SBA loan liquidation and servicing webinars with three of the finest experts in the country — Ethan Smith of SBA lender boutique law firm Starfield and Smith, SBA lender attorney Mitch Fogel, and Kerri Agee, of banc-serv, the president of the largest SBA loan service provider in the country.
Why a Webinar?
It’s very cost effective. No airfare, no hotels. Just cram as many people as you wish into your conference room and turn on the computer. You have two options to listen to the program–phone, or through your computer speakers. You are only charged for the connection.
You can choose to have any many connections nationwide as you wish when you purchase unlimited access for only $100.
A great benefit of the program is that you have the ability to ask questions directly of the panelists. Or, you may simply email Coleman during the program and he will air your question. All of our webinars are recorded. Buyers of the unlimited site license option will receive a DVD recording of the event to share with anyone you wish. A transcript of the program is also provided to purchasers of the unlimited site license.
How it Works
We use Go-to-Webinar as our platform. You will receive a link that will direct you to an Internet site to view the presentation. Nothing will be downloaded to your computer. If you would like to test this process to make sure you will be able to access the link through your system’s firewall, just send an email to firstname.lastname@example.org, and he will walk you through it.
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Coleman Report News of the Day Starts of 1:50 p.m. Eastern
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We do this for two reasons. First, the pre-show confirms you are successfully connected to the webinar. Second, we provide you a synopsis of the current news to help you place what is happening to the small business lending industry in context. Join us for this free feature!
The Fine Print
1) The single user registration fee of $289 is based on location not attendance. You may have as many people in one location attend. You many distribute the materials to anybody in your company.
2) For only $100 more, you may invite as many people from your institution from as many locations as you wish. (You also get the DVD and transcript!) We will forward you a link that allows you to sign up as many people as you wish. If
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|What You Need to Know about SBA’s new SOP 5057|
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