How SBA’s Proposed Changes to the Lender Risk Rating System Affect You — A Coleman Webinar 5/2
SBA’s New Redwood Small Business Credit Score
Attend the Live Webinar Event
Thursday, May 2, 2024
2:00 PM Eastern
75-minute training with e-certification
Hosted by Bob Coleman; Instructed by Brent Ciurlino and Leslie Tripp
Impacts of the new SOP 50 56 – Lender Participation Requirements:
- Changes in L/LMS Portal and PARRiS Risk Rating System Metrics
- Changes in LSP Review and Approvals
- SBA Quarterly PARRiS Reports, Datapack and Loan Reveiws
Are you struggling to stay ahead of the curve in the ever-evolving SBA lending landscape?
The proposed changes to the SBA Lender Risk Rating System have left many lenders grappling with uncertainty. With the incorporation of new modeling techniques, segmentation approaches, and overriding factors, understanding and adapting to these modifications is crucial for maintaining compliance and mitigating risks within your SBA lending portfolio.
New numbers are in play in the recalculation of your lender PaRRIS score and the borrower small business credit score.
Failure to comprehend and align with these changes could lead to inaccurate risk assessments, regulatory scrutiny, and potential financial consequences. The introduction of the XGB machine-learned modeling method, segmentation based on credit bureau data availability, and the consideration of overriding factors such as regulatory actions, early loan default trends, and fraud instances, have added layers of complexity to the risk rating process.
Navigating these intricacies can be daunting, especially when coupled with the need to maintain confidentiality and adhere to SBA’s guidelines for handling sensitive information.
That’s where our comprehensive webinar comes in.
Former SBA Director of OCRM and Associate Administrator Brent Ciurlino and our team of experts will guide you through the intricate details of the SBA Lender Risk Rating System changes, equipping you with the knowledge and strategies to seamlessly adapt to the new landscape.
By attending this webinar, you’ll gain a deep understanding of the goals, methodologies, and practical implications of these modifications, empowering you to make informed decisions and mitigate risks effectively.
You will learn:
- Understanding the goals of the SBA Lender Risk Rating System enhancements
- Improving accuracy in assessing SBA lender risk
- Ensuring model reliability across economic cycles
- Increasing transparency and usability for SBA lenders
- Incorporating the latest SBA performance data
- Evaluating new variables for deeper risk insights
- Utilizing the XGB machine-learned modeling method
- Predicting loan default probability with hundreds of risk variables
- Three segmentation approaches based on credit bureau data availability
- The blended segment: combining business and consumer credit data
- The consumer segment: focusing on business owner’s credit history
- The commercial segment: assessing business entity creditworthiness
- Model development spanning multiple economic cycles (2008-2022)
- Rating components: SBA loan data and Experian credit bureau data
- Loan payment behavior analysis in the rating system
- Evaluating loan characteristics like amount, term, and interest type
- Factoring in business characteristics like NAICS sector risk
- Assessing consumer information like credit history and utilization
- Analyzing business information like payment experiences and UCC filings
- Introduction of overriding factors to adjust risk ratings
- Considering regulatory actions against lenders
- Evaluating secondary market issues impacting SBA loans
- Monitoring early loan default trends
- Identifying abnormally high default, purchase, or liquidation rates
- Addressing violations of SBA loan program requirements
- Factoring in fraud or indictment involving lenders or employees
- Other risk-related concerns not captured by the rating model
- Maintaining confidentiality of SBA risk ratings and reports
Your Training Staff
Host: Bob Coleman, Founder, Coleman Publishing
He is the founder of Coleman Publishing, a publisher of newsletters, reports, data, conferences, webinars, online training videos — to help finance professionals become small business lending experts.
Bob is the nationally recognized expert on small business financing. He has appeared frequently on Fox Business News, NPR and other numerous media outlets. He is sourced by all print media. He is a frequent speaker about small business lending throughout the US and EU. Bob has a BA in Medieval History from the University of California Santa Barbara and a MBA in Real Estate Finance from the University of Southern California. Bob has earned numerous awards as a producer of events and video training. His passion is getting capital to Main Street and Rural American small business.
Instructor: Brent Ciurlino, Chief Operating & Risk Officer
Currently, as the Chief Operating & Risk Officer at VelocitySBA (one of the largest Small Business Lending Companies) Brent Ciurlino leads SBA lending operations, compliance, and risk management efforts. Brent is an expert in risk management and regulatory practices within the financial sector, with a career spanning roles in both private and public sectors. Having served as the Director of the Office of Credit Risk Management for the SBA, Brent played a pivotal role in implementing innovative risk protocols and overseeing multi-billion dollar loan debenture and portfolio programs. His extensive experience also includes executive positions at esteemed financial institutions such as Blue Foundry Bank and Freedom Mortgage, where he directed enterprise risk management and regulatory compliance initiatives.
Co-Instructor: Leslie Tripp, Director of SBA Consulting, Doeren Mayhew
With 30 years of industry experience, Leslie specializes in delivering Small Business Administration (SBA) 7(a) loan compliance services to lending institutions across the nation.
Dedicating her career to all things lending, Leslie discovered her niche was with SBA loan compliance. Her background of working with financial institutions, and even at the FDIC, uniquely positions her to help provide guidance and valuable insights to client engagements.
An SBA compliance veteran, Leslie and her team at Doeren Mayhew have participated in more than 16,000 SBA loan reviews helping lenders remain compliant with the SBA’s Standard Operating Procedures (SOPs). Recognizing the need for an automated SBA loan compliance system, she pioneered GOLoan Review software, designed to identify SOP compliance exceptions. Understanding the complexities surrounding SBA loans, Leslie and her team also provide additional solutions to clients, including post-closing loan reviews, SBA exam preparation, lender staff training, SBA credit policy design, Federal regulation compliance reviews, business valuations and Universal Purchase Package support.
How the Webinar Works
We use Microsoft Teams as the webinar platform.
We will open the webinar for attendees to join at 1:30 pm ET. This will give each attendee thirty minutes before the webinar begins to troubleshoot any technical issues. Call 586-804-8775 if you need assistance.
Recording
All Coleman webinars are recorded and a link is sent to all attendees.
Single Site License
The single site license grants your institution one viewing of the webinar. It is permissible to use a single site license on one device in a conference room to be viewed by multiple attendees The webinar can be viewed on any device.
Multiple Site License
A multiple site license is an unlimited access pass for anyone at your institution. You will be given a link that will be usable to anyone with your email domain.
Webinar Links and Handouts
The webinar link will be included on your sales receipt.
The link will also be included when we send the presentation and handouts. These will be sent by eod the day before.
Participants Earn Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.
Questions
Questions throughout the webinar are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat in Microsoft Teams. The second is to send an email to anna@colemanreport.com. Also, feel free to ask pre and post-webinar questions.
The Fine Print
1) Substitutions are allowed at no charge.
2) Cancellations receive a 100% credit for any Coleman product.
3) As with all our products, we offer a 100% money back satisfaction guarantee — no questions asked.
3 Easy Ways to Order
1) ONLINE — Register and pay online via Stripe
2) EMAIL –Send an email to cindy@colemanreport.com with “Webinar Registration” in the Subject Line. We will do all the paperwork and either send you a sales receipt or an invoice.
3) PHONE — Call us at 818-790-4591.
Bob Coleman
Founder & Publisher