Small Business Administration
Sub-Title:
Actions Needed to Improve the Usefulness of the Agency's Lender Risk Rating SystemAuthor:
William B. ShearPublisher:
DIANE Publishing CompanyPublication Date:
04-01-2010ISBN:
9781437926682Pages:
58Subjects:
BusinessAvailable as:
Paperback, 9781437926682Description:
The Small Business Administration (SBA) guarantees individual loans that lenders originate. The agency uses its Loan and Lender Monitoring System (L/LMS) to assess the individual risk of each loan, and SBA's contractor developed a lender risk rating system (LRRS) based on L/LMS data. However, questions have been raised about the extent to which SBA has used its LRRS to improve its oversight of lenders. This report examined: (1) how SBA's LRRS compares with those used by federal financial regulators and lenders and the system's usefulness for predicting lender performance; and (2) how SBA uses the LRRS in its lender oversight activities. The author interviewed officials from three federal financial regulators and 10 large SBA lenders. Illus.
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