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  • Writer's pictureLori N. McCausland

5 Tips to Erase Servicing Action Overwhelm


You’re drowning in details and SBA paperwork.


Interest-rate changes are creating a deluge of SBA Servicing Actions. The economic slowdown is causing Borrower anxiety about what this means for their current and possible future loans. Not to mention your anxiety about the potential for troubled loans and the sad reality of liquidations.


All on top of staffing issues due to challenges in hiring and budget cuts for staff.


And not to add fuel to the overwhelm fire, but – did you hear that SBA has started focusing on Lender Service Provider oversight procedures in their OCRM audits?


Slow down. Breathe. Step back for a moment.


Nothing good comes from leaping into action without pausing to think and prepare. Even in a rapidly-changing landscape, prudent lending still drives the bus.


And there’s a positive aspect – really. Servicing Actions are a great opportunity to connect with a Borrower you may not speak with often. And that means you’ll spot issues you didn’t know were there – and you might even make a sale of a new product.


Here are five tips to consider.

  1. As already suggested: pause, breathe, give yourself time.

  2. Document the file with a written request from the Borrower, as required by SBA.

  3. Determine if the file had a post-closing or recent annual review identifying issues requiring mitigation.

  4. Obtain supporting documentation for your decisions.

  5. Collect relevant consideration from the Borrower in return for granting their request. This can include paydown, documentation, waiver of defenses, and others.

We can hear you thinking: “Really?! That doesn’t free up my time to make it happen, and it doesn’t magically produce staff to get the job done!”


We know. Many Lenders struggle with this. And that’s where outsourcing part of your process can be a lifesaver – or at least a sanity-saver. Many Lenders outsource parts of their SBA process to a third party, with confidence that SBA requirements are being met and the proper analyses are being performed.


Just imagine the time you could save if you outsourced:

  1. File reviews to discover issues requiring mitigation;

  2. Needs list generation for loan officers and relationship managers to give the client, so they’ll know what’s required to complete the analysis;

  3. Performance of the analysis itself, including preparation of the Servicing Action Memo;

  4. Needs lists for documenting and closing Servicing Actions to SBA standards; and

  5. Procedures review to prepare for those OCRM audits.

We can help you get through the stress and overwhelm these requirements can bring by becoming a part of your solution, or by helping to bridge a gap while you’re dealing with staffing or other challenges. We’re here to ease the stress and help you find the right solution for your situation.


Want to learn more and explore options? Schedule a free consultation and we’ll see if there’s a fit.


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