Sba sop 51 00 On-Site Lender Reviews/Examinations Office of Lender Oversight
e. Introduction – Portfolio Performance Subcomponent
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e. Introduction – Portfolio Performance SubcomponentThe analysis of portfolio performance focuses on an evaluation of a lender’s SBA loan portfolio to assess historical, current and projected performance and to identify various risk characteristics of the portfolio. This analysis considers a lender’s performance compared to the portfolio, to SBA-defined peers, and to itself, over time (trends). While the criteria and procedures identified are not an exhaustive list and may be modified during review planning or on-site activities, they provide a reasonably complete list of the processes used to evaluate this category. The procedures are not mandated rules to be rigidly followed by the examiners. The lending business is a dynamic one, requiring examiners to use their judgment to tailor examination practices to individual situations. Examiners can add, delete and/or modify procedures as appropriate, with written approval of the AA/OLO or designee, when a lender’s particular circumstances and risk characteristics warrant. (Electronic mail is an acceptable means of obtaining the written approval of the AA/OLO or designee.) Any criteria not used in a particular review should be so identified in the Report, along with the reason for the change. f. Examination Criteria – Portfolio Performance Subcomponent13 CFR §120.410 requires that all participating lenders have a continuing ability to evaluate, process, close, disburse, service and liquidate small business loans. SBA assesses this ability, in part, through review criteria regarding portfolio performance, as described below. The criteria are not all inclusive and during the course of the review, additional criteria may be identified as well as certain criteria may be determined not to apply. The purpose of the credit quality review is to establish a picture of the SBA Supervised Lender’s SBA portfolio risk characteristics using predictive credit scoring as the measure of credit risk. This allows SBA to predict purchases over a 12-24 month period. SBA aggregates the lender’s loan scores, analyzes the lender’s SBA loan credit quality and compares it to SBA’s portfolio and peer group performance. The portfolio performance criteria are: Loan production activity; Key performance statistics and comparative performance analysis; Credit quality; and Any other risk characteristic(s) identified in the Plan. g. Examination Objectives – Portfolio Performance SubcomponentThe objective of the Portfolio Performance review is to assess the performance of an SBA Supervised Lender’s SBA 7(a) loan portfolio and the demographics of the portfolio, and to determine whether SBA Supervised Lender is failing to meet any portfolio performance requirements based upon statute, SBA Loan Program Requirement or Notice. h. Examination Procedures – Portfolio Performance SubcomponentProcedures are provided as guidance in conducting each component Examination. The procedures are not an exhaustive list. They will be expanded and contracted or adapted as warranted, in SBA’s sole discretion, based on (i) the circumstances of the individual lender, particularly if there are program or operational changes, (ii) changes in economic conditions, or (iii) Agency policy changes. The Portfolio Performance procedures are designed to analyze portfolio characteristics such as growth rates, performance, industry and geographical concentrations; determine whether the SBA Supervised Lender is meeting any portfolio performance requirements of SBA Loan Program Requirements or SOP; and assess portfolio credit quality (as measured through credit scores). The examination procedures include analysis and comparison of SBA and SBA Supervised Lender data.
Loan Production Activity Analyze the annual production (numbers and dollars), delivery method break-down, average loan size, and discuss any trends or significant period-to-period fluctuations. Comparative Performance Analysis
Active Purchases Identify and analyze the SBA Supervised Lender’s outstanding Active Purchases (in numbers and dollars) and trends over two fiscal years, as available. Industry Concentration
Geographic Concentrations
Early Defaults Identify early defaults and analyze risk implications (early default defined as default reported within 18 months of disbursement); i.e. sporadic versus trend evidence, etc. Guaranty Purchases Identify any trends in SBA Supervised Lender’s guaranty purchases. Consult available Agency data regarding SBA Supervised Lender’s purchase activity for both the past-one year and five-year periods. Other Segmentation Identify and analyze any other segmentation of the portfolio with risk implications, and compare to SBA portfolio and/or peer averages, as available. Compile any other tables or presentation of data, as appropriate during the review investigation, and as available, compare to any available applicable standards. Credit Quality
Other Risk Characteristics Identify and analyze any other risk characteristics as noted in evaluations or other research. Conclusion Discuss all portfolio performance Findings with management. Conclude on the portfolio performance of the SBA Supervised Lender. Directory: sites -> default -> files files -> Answer True False 2 points Question 2 files -> Northern England’s set-jetting locations files -> Nstructions for Acquiring Excess Equipment online, through the 1033 Program files -> Occupational health and safety files -> The Black Panther Party’s Ten Point Program files -> International programs roel profile files -> Fermi Questions a guide for Teachers, Students, and Event Supervisors Lloyd Abrams, Ph. D. DuPont Company, cr&D/ccas experimental Station Wilmington, de 19880 files -> Personal Information Name: Maha Al-Ammari Nationality: Saudi Relationship Status Download 0.62 Mb. Share with your friends:
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