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