20. September 2021 · Comments Off on Fee Disclosure And Compensation Agreement Ppp · Categories: Uncategorized

According to the results of a study published by the SBA Inspector General, credit applicants filed 51,000 Form 159 submissions between 2010 and 2014, 37% of which contained errors. [1] Yikes. Some contained missing or unresolved credit numbers, no registered remuneration or referral fees, incomplete lender agents or indemnifications, or a combination of several errors. If you make sure to check that you have filled everything out and filled in correctly, you will save yourself trouble later. At least two of these cases have been challenged, so it is conceivable that federal courts of appeal will view the controversy differently. But in the meantime, as the cases match, the “common sense” approach is for the lender, borrower and agent to use Form 159 to document in advance an agreement on how the agent will be compensated for their assistance. If you`re working with an agent who has performed SBA services before, they should have an idea of what the SBA considers a reasonable fee for the amount of work they do for you. If not, consult the SBA or your lender to verify. If the SBA believes you paid too much, your lender may have to partially repay its compensation Transparency and full disclosure also help SBA prevent fraud and prevent lenders from exploiting their credit applicants. The above study also included that the Inspector General has reported at least 22 cases of fraud to the loan officer since 2005, for a total of more than $300 million.

By reporting all the fees you`ve paid to loan officers, you can ensure that lenders don`t take advantage of you or your venturers.

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