September 8, 2017                                                   TIMELY. RELEVANT. NEWSWORTHY. 

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First and foremost, NAGGL hopes that all of our members, their families and friends, in and around Florida remain safe as Hurricane Irma arrives. We will post information on naggl.org regarding SBA's disaster relief efforts as it becomes available (and have recently updated details on the need for loan officers in the aftermath of Hurricane Henry).

We also wish our FLAGGL colleagues the best as they begin the hard work of rescheduling their Annual Conference, which had to be canceled due to Hurricane Irma. 

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NAGGL CEO video update >

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Winter IS Coming ... Are YOU Ready to Meet SBA’s Prudent Liquidation Deadline? 

Several months ago, NAGGL published an article intended to correct common misperceptions about SBA’s then-new Prudent Liquidation Deadline requirements. Since then, two things have happened: 1) SBA’s National Guaranty Purchase Center (NGPC) has implemented its process for considering lenders’ requests for extensions of the two-year liquidation deadline, and 2) additional incorrect information has been circulated from various sources about the process and the deadline.

So, with the December 1, 2017 deadline for resolving loans purchased by SBA prior to December 1, 2015 looming, now is a good time to update lenders on SBA’s Prudent Liquidation Deadline and to provide new information on the extension request process.  

The most significant change over the past few months is that SBA now has a process in place for considering lenders’ requests for extensions to the two-year liquidation deadline. Last April when the NGPC sent out the semi-annual status report template it also provided a template for lenders to use to request extensions of the liquidation deadline.The template provides a roadmap of the information that lenders need to provide when asking SBA for more time to resolve their previously purchased loans. But, the most important thing to remember is the requirement that the lender describe the steps that it has been taking to resolve the loan and document the specific reason(s) why it is unable to fully complete its actions on the specific loan within the 24 month period that SBA allows.

SBA has advised NAGGL that it has processed nearly 100 extension requests and approved most of them. But, SBA also asked us to let lenders know about some of the issues that could cause an extension request to be denied.

First and foremost, there must be a rationale provided that allows SBA to determine that the lender has been actively working on resolving the loan and that resolution within the mandated timeframe is not possible because of circumstances beyond the lender’s control.

To reach that conclusion, SBA relies on the documentation that the lender provides, e.g., information regarding state laws requiring judicial foreclosure on a loan secured by real property together with proof that the lender is actively pursuing such action; documentation related to a bankruptcy filing, including evidence of the actions that the lender has taken to protect the lender/SBA rights, together with information on the status of the bankruptcy; etc. AlsoSBA has advised that it will not act on a request that the agency provide extensions based on a “list” of loans provided by the lenderEach action must be requested separately with appropriate documentation to support the individual request.  

 

Although the Commercial Loan Servicing Centers (CLSCs) are accepting applications for extensions, they have not yet started to formally consider extension requests on the loans that they service. But, SBA intends to expand that process to the CLSCs soon, so they will be sending the extension request template to lenders with loans in those centers with the next semi-annual report template.   

NAGGL is using its best effort to assure that no lender loses its loan guaranty because it missed the liquidation deadline, so we're offering a specially-priced WEBExpress session Winter IS Coming ...  How to Meet the Prudent Liquidation Deadline on September 20. The training has been revised to include up-to-the-minute information from SBA on requesting extensions and will offer plenty of time for Q&A.

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Correcting Misperceptions About SBA's Prudent Liquidation Requirements – Updated as of 9/08/2017

Effective December 1, 2015 (SOP 50 57 2), SBA implemented new requirements for resolving loans AFTER they are purchased by SBA. The requirements are meant to assure that loans are promptly handled after SBA honors its guaranty and are not left to languish.

SBA determined that it needed more proscriptive guidance regarding its post-purchase requirements because it has continued to have a large inventory of purchased loans that have not been resolved by lenders.That inventory includes a significant number of loans that the agency purchased more than 2 years ago (about 2500).  Get the FULL ARTICLE >

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New membership add-on available - Individual Membership
Calling all political junkies! Interested in better understanding the ins & outs of government relations as it relates to the 7(a) program? Want to know how to best communicate with your congressional representatives and the agency while getting involved with NAGGL leadership and learning about our PAC? Add an Individual Membership to your existing NAGGL membership! Enrollment is voluntary and the annual dues are either $25 (for those persons on a Sustaining member’s roster; or serving on the Board) or $50 (for those persons on an Associate or a Regular member’s roster).
FAQ >

What are the additional benefits of an individual membership?

More, including application >

Register >

September 12 - WEBExpress: SBA’s NEW Final Rule   - Special fee: $95
September 7 - WEBExpress: Planning for Liquidation 
September 14 - WEBExpress: Preserve Your Guaranty: Don’t Make These Mistakes! 
September 20 - WEBExpress: Winter IS Coming ... How to Meet the Prudent Liquidation Deadline Special fee: $145

Several post-conference courses are close to sold-out...

"The conference is always cutting edge. I am baffled how institutions that don't attend stay current on what is happening ... ."  -- NAGGL Indianapolis conference attendee

Annual Conference

October 30-November 1
Colorado Springs, CO


REGISTRATION FEE
After September 8 (or until sold-out):
$1,300 mbr, $2,000 non-mbr, $650 Fed Govt

BOOK YOUR ROOM EARLY!!!

The Broadmoor Hotel

1 Lake Avenue
Colorado Springs, CO 80906

Direct: 714.471.4975
Reservations: 855.586.0957
Hotel Cut-Off: October 6 
(or until sold out!)
Room Rate: $223 (+11% occupancy tax +$16 resort fee)

Overflow accommodations >



National Association of Government Guaranteed Lenders, Inc.
215 East 9th Avenue | Stillwater, OK 74074 | 405.377.4022 | info@naggl.org | www.naggl.org

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