Common Errors found in Purchase Packages

Common Errors NGPC is Finding in Purchase Packages that May Delay Processing

• There are no tabs or the package is not organized in order of the checklist or authorization. (Please note that as of August 1, 2007, the new executed tabs are required. Packages without them will be returned.)

• The transcript is not signed and/or is not in the SBA 1149 format. All transcripts must minimally include the following:

  • SBA loan name and 10-digit loan number

  • Method used for interest computation (360 day or 365 day)

  • Date and amount of each disbursement

  • Date and amount of each payment showing principal and interest applications

  • Date to which interest is paid (which should be the same date payment was received)

  • Interest rate changes (for variable rate loans)

  • Next payment due date (defined as the "default date," at which point the interest rate becomes fixed; no changes to the rate should be reflected thereafter)

  • If applicable, amount of Lender's successful bid at foreclosure sale (reflected on the transcript as a credit to the principal balance)

• Early default issues:

  • Evidence of equity injection is missing

  • Settlement sheets are incorrect or do not have supporting documentation to evidence disbursements

  • Post default UCCs are missing or are incorrect.

  • If the loan is an early default by a PLP lender, the credit memo and/or SBA Form 912 are often missing.

• IRS Income Tax Verification is often missing or incorrect.

• If you are submitting a Low Doc loan for purchase, the liquidation of all non-real estate assets must be completed before the purchase request may be submitted unless the borrower has filed bankruptcy. We have received several Low Doc loan purchase requests where the liquidation has not occurred and there is no indication of bankruptcy, which causes us to assume that the purchase package is not ready to be submitted.

• For all loans, in situations where liquidation has occurred at the time that purchase is being requested, the Report of Sale and Appraisal(s) (or some other satisfactory valuation of collateral), or final wrap up report are often missing. We cannot purchase the guaranty without these extremely important pieces of information.

• The Site Visit Reports are often missing.

• Wire Transfer Information is Missing

• Environmental Questionnaire/Phase I, II is not provided when required

• Risk Management Database information is missing

• LowDoc Eligibility Checklist (if LowDoc Loan) is not provided when required