Best Practices: Exploring SOP 50 57 3: Delinquent Secured Senior Loans
https://starfieldsmith.com/wp-content/uploads/2023/10/October10.56b46f77-6191-4d37-ab7a-9be1f47bcd34.mp3 SBA loans secured by junior liens on collateral are subject to the rights of senior lienholders in such collateral. SBA requires lenders to take prudent and commercially reasonable actions to ensure that the SBA lender’s junior lien is not eliminated in a foreclosure action initiated by the senior lienholder or that the equity available ... Read More
Best Practices: Handling SBA Loan Deferments
https://starfieldsmith.com/wp-content/uploads/2023/10/1be63ef0-b849-4fe9-8663-b379efc2cb0a.mp3 A deferment is a way by which a lender can temporarily reduce monthly payment amounts or completely suspend said payments for a brief period of time. When used correctly, a deferment can assist the borrower with cash flow improvement so that it can resume its normal monthly payments to the bank upon expiration of ... Read More
Best Practices: Exploring the revisions to SOP 50 57 (3): Liquidation of Collateral
https://starfieldsmith.com/wp-content/uploads/2023/09/f419d673-f1fc-440c-94a0-785af153b2da.mp3 Lenders should always review SBA’s Servicing and Liquidation SOP when engaging in liquidations of SBA loans. This article will take a high-level look at the changes incorporated into the SOP 50 57 3 (the “SOP”), which went into effect August 1, 2023, that impact liquidation of real property and personal property collateral. Financial Hardship ... Read More
Best Practices: Exploring the revisions to SOP 50 57 (3): Modification of Collateral
https://starfieldsmith.com/wp-content/uploads/2023/09/a88b7160-76aa-4e20-bb58-603ae20659ff.mp3 SBA lenders must be careful to not only follow the updated guidance in SOP 50 57(3) for liquidation and guaranty purchase, but also for SBA loans in regular servicing. While many changes to the standards of Modification of Collateral – Chapter 8 of the SOP 50 57 (3) were typographical in nature, a few ... Read More
Best Practices: Updated Guaranty Purchase Review Standards under SOP 50 57 3
https://starfieldsmith.com/wp-content/uploads/2023/09/8de20eb2-36ac-4aa0-8013-ec3c17838d63.mp3 Under the SOP 50 57 3, SBA has added a new provision that alters the perspective under which SBA will review a lender’s actions. This revised language states: For the purposes of determining Lender compliance with SBA Loan Program Requirements, SBA will apply the requirements of SOP 50 10 and SOP 50 57 in ... Read More
Best Practices: Don’t Skimp on SBA Eligibility Determinations
https://starfieldsmith.com/wp-content/uploads/2023/09/5a8ef01f-844a-4319-83a0-9d5593f456b2-1.mp3 “If you keep your eye on the profit, you’re going to skimp on the product. But if you focus on making really great products, then the profits will follow.” -Steve Jobs The SOP 50 10 7, which became effective on August 1, 2023, begins with the following statement: “[d]etermining whether an Applicant is eligible ... Read More