SBA Lender

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Coface Collections North America has been and continues to be pioneers in the commercial collection industry. Many services that we currently offer to Bank and non bank lenders were implemented to conform to Federal, State, Locale and The United States Small Business Administration’s collection and recovery laws. We cater to commercial businesses, regardless if loans are direct or Government Guaranteed. As lenders categorize their portfolios in stages, current/performing/non-performing/recovery and litigation, our services are tailored to meet requirements in each stage. In order for a lender to recognize the “Guarantee”, it is critical that loans are originated and serviced with strict SBA compliance. The information we present is current and accurate, as it is verified and cross checked through numerous resources. Our reports can be tailored to meet individual client requirements.

Site Visits Investigations

The 60-Day Collection Site Inspection service was implemented to accommodate one of the largest SBA non-bank lenders and has since become a valuable collection tool for many others. This meets the SBA standard operating procedure requirement and is a function that is critical to a demand being honored.

Broker Price Opinion

An alternative to conventional appraisal products, a BPO provides a professional opinion for current market valuation, in a timely and cost efficient manner. This report contains extensive comments related to local market conditions, immediate neighborhood characteristics, subject property condition and an analysis of 3 current listing and 3 recent sales of comparable properties, including photos, culminating in the broker’s conclusion of a suggested list and sales price. We maintain 14,000 licensed agents nationwide.

Appraisals

When a more in depth review is required to determine true value NREO, our national Real Estate division provides several levels and types of appraisals. All include a fully detailed report including photos and comparables and are completed by fully licensed and certified appraisers.

Collateral Property Verification

Loan Liquidation, Acquired Property SOP 50,51-2 requires property be verified and is a Coface service. Since very few SBA loans are unsecured the personal guarantee is considered collateral the assets of the guarantor may need verification as well. Lenders have made commitments to the SBA. By liquidating collateral in a timely fashion they easily maintain their status as a Certified or Preferred Lender.

Collections

For SBA lenders Coface has tailored their collection efforts to identify causes of default per SOP 50-51-2, which require the lender to demand the “Guaranty”, as soon as the adverse situation is detected. Coface is aware that SBA compliance is required when liquidating loans either by, collecting the full balance, collecting payments, stipulations, litigation, the remarketing of M&E or Real Estate. Coface offers solutions for each of these avenues. In order to comply with the 120 day interest rule Coface Collections works swiftly to return files to the lender for timely submission of the repurchase demand thereby avoiding a needless interest repair. Prices are quoted on a contingency fee basis. This is often a more efficient and less costly process than lenders servicing and/or liquidating the loans or assigning them to the SBA.

Litigation

All litigable matters are handled in accordance to SBA policy, including approval of additional expenses and the reimbursement of same. Coface has the ability to provide flexible solutions unlike the SBA which must use U.S. Attorneys whose heavy case loads prevent these liquidations from being a priority, slowing the liquidation process and resulting in lower recoveries. By partnering with Coface, lenders take a proactive step towards refining procedures that are audited by the SBA. Coface can detect deficiencies in current policies and make recommendations to our clients as how best and most expediently correct any issue that many cause a substandard SBA audit, hampering their future ability to originate SBA guaranteed loans under the 7A program and preserving their SBA charter. Some of the additional services we offer are;

• Asset & Liability Searches

Confirming or locating assets, bank account location, background checks, skip tracing, UCC searches, Real Estate searches, Secretary of State Searches and Credit Report evaluations are a sampling of the services we have been performing for our clients for many years.

• Pre Funding Review

Detect Fraud PRIOR to funding by confirming or disallowing information provided to the Bank on the loan application.

• Consulting Review

  SBA guaranteed loans must be serviced in compliance with the SBA’s Loan Servicing SOP 50, 50-4 and our review services help lenders be assured they are meeting all requirements.

• Insurance Verifications

Often a large percentage of loans are returned for insurance verification oversights. With the experience of our credit insurance division, look to us as the solution for fast and accurate outsourcing of the maintenance of your annual insurance verifications for SBA compliance.

• Liquidation Plans

Lenders participating in the Preferred Lenders (PLP) and LowDoc programs are required to liquidate all of their 7(a) loans with minimal involvement by the SBA and all lenders must have a detailed liquidation plan in place. Coface can help with both liquidation and plan development.

• Wrap Up
Reports

Summarize the results of the liquidation, usually results in faster approval of lender liquidation actions. These can be designed to meet the data collection requirements of the Small Business Acts well as those of the Government Performance and Results Act and build greater efficiency into the liquidation process.