SBA Lender Risk Rating System
On Mar. 7, SBA implemented changes to lender risk rating system.
- SBA published a request for comments on changes to the lender risk rating system.
- Lender risk rating system assigned by SBA as set forth under 13 CFR 120.1015.
- Overview
- SBA lender risk rating system is a series of predictive default models to assess risk.
- Monitors risk of each active 7(a) lender and certified development company (CDC).
- Updates lender portal to reflect changes to the system and corresponding metrics.
- System is deliverable under SBA loan and lender monitoring system (L/LMS) contract.
- Current model redevelopment is part of transition of L/LMS contract to a new vendor.
- Consultation
- Comments on proposed lender risk rating system are due on or before May 6, 2024.
- SBA will review any comments received and will consider them during the next update.
- Effectiveness
- This notice is applicable as of Mar. 7, 2024.
| Regulators |
SBA
|
| Entity Types |
Bank; Corp; SLHC; Thrift |
| Reference |
89 FR 16604, 3/7/2024; Citation: 13 CFR 120.1015; |
| Functions |
Compliance; Exams; Financial; Operations; Privacy; Reporting; Risk |
| Countries |
United States of America |
| Category |
|
| State |
|
| Products |
Banking; Loan; Payments |
| Regions |
Am |
| Rule Type |
Final |
| Rule Date |
3/7/2024 |
| Effective Date |
5/6/2024 |
| Rule Id |
203767 |
| Linked to |
N/A
|
| Reg. Last Update |
3/7/2024 |
| Report Section |
US Banking |
Last substantive update on 03/11/2024
