Hard to believe, but we’re well into the fourth – and final! – quarter of the year. So there’s a lot going on, not the least of which is holidays, vacations, and general fun as the year draws to a close.
That means now is the time to step back and take a look at – yes – third-party loan reviews. It’s time to schedule them for 2025.
Why third-party?
Let us count the reasons!
Something you see every day becomes normal. It’s easy for your eyes and brain to skip over small issues. But those small issues can – and will – grow into big problems over time. An experienced SBA lender service provider will spot those small issues for you before they become big problems.
There may be details in 2024’s many SBA SOP updates that your team isn’t completely familiar with. Those details can come back to haunt you.
One of the fun things about third-party loan reviews is that a skilled SBA lender service provider will uncover the good things you’re doing. These are things your team has learned that you’ll want to emphasize and bring forward as part of your regular process.
Do you know what’s missing? A structured, external review of your loan portfolio brings to light missing documents, missing signatures, out-of-date financials, overlooked site visits – all the things that can trigger SBA scrutiny. And any SBA department with a robust portfolio will have something missing in some of their loans. It’s just what happens.
How was your loan review last year? What did you learn – and did you bring those learnings forward in your loan servicing this year? If something helpful got dropped off (old habits tend to reassert themselves), now is the time to bring it back into awareness – and put it on your checklist!
Speaking of checklists: it’s not just your loan portfolio that should be reviewed every year. Processes, procedures, and checklists all need to be validated to ensure they reflect all the changes from SBA over the year.
SBA doesn’t require annual reviews in their SBA guidelines for lenders, however they may recommend it based on the results of a recent OCRM review.
Which means it’s not a bad idea as a Best Practice to include annual reviews in your overall process in order to stay within SBA compliance. We’ve seen first hand in our SBA loan liquidation work issues that could easily have been prevented had the loan been part of a third-party loan review.
Which is why we say – now is the time to schedule your third-party loan reviews. Give us a call at 877-576-0819, or drop us a line through our Contact form here!
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