May 22, 2015
By Bob Coleman
Editor, Feedback Friday
A Feedback Friday question to Coleman faculty instructor, Lance Sexton:
The Bank is paying a referral fee to the broker but the broker has not signed the 159 compensation form. Do we need this document prior to closing and funding?
The broker fee will be paid after the loan is closed and booked.
You can actually submit the form immediately after the initial disbursement. Please see the SOP language on submission of the SBA Form 159 below:
Lenders must submit SBA Form 159(7a) to Fiscal Transfer Agent (“FTA”) on loans that involve payment of fees, including, but not limited to, those covering any packaging fees charged by the participating lender or where the lender paid the loan agent fee. This submission is required only once after there has been an initial disbursement on the loan and should be submitted in conjunction with a lender’s 1502 report for the month. The information may be submitted either by facsimile or by electronic document imaging utilizing either the Portable Document Format
(.pdf) or the Tagged Information Format (.tif). Lenders may either fax the document to FTA at (718) 315-5170 or email the pdf/tif file to Form159@colsonservices.com.
Lenders are required to retain an original signature version of the form in their files for compliance review purposes.