Kresser, Corona & Associates has noticed that many who have submitted a Guaranty Purchase Packages, have not completed the process by submitting the appropriate Charge-Off Tabs and Expense Reimbursements. This can result in loans reported on the lenders’ SBA Semi Annual Status Report (SAR). The SBA uses the SAR to monitor the lenders’ liquidation activity, that have been in liquidation longer than 2-year liquidation requirement. With the passing of time, these loans become “Legacy Loans” and will not be charged off by the SBA until the required information has been submitted. The SBA closely monitors lenders’ liquidation activity and will downgrade a lender’s PARRiS rating if the lender continues fails to submit these loans for charge-off.
Additionally, the failure to submit the Charge-Off and Expense Reimbursements can lead to a substantial and unnecessary loss to the lender in terms of denials of liability and rejection of expense reimbursement.
Our firm has significant experience in this very complex part of the SBA liquidation process and has been retained by lenders nationwide to prepare and submit the Charge-Off Tabs and Expense Reimbursements for Legacy Loans.