[Yankeeman07]

i understand why you are defending the banks side.

A Los Angeles law firm Monday sued nearly 5,000 banks and lenders in an effort to recover $3.85 billion allegedly collected unfairly by financial institutions as administrative fees during the first round of payment protection funding for small businesses.

This is a typical lawsuit by an ambulance chasing Attorney / Law Firm. "Only a Democrat would use the wording "Unfairly Collected" - Treasury Department set forth fees for processing SBA Loans for the Banks to underwrite and then they have to collect data from merchants within a short time to verify that the LOAN will be forgiven.

Less than 90 days from now we will start learning how many "Loans" are not forgiven.
That will be a new round a gnashing of teeth from merchants.

Kevin from SCB may be able to answer this question - when the merchants loan is NOT forgiven, who is responsible for collecting the monthly payments and collections?

As has been stated for the last several weeks on this Forum - there is Zero Money for brokers within the EIDL or PPP Program.

[Kevin Henry-Seacoast]

This is a typical lawsuit by an ambulance chasing Attorney / Law Firm. "Only a Democrat would use the wording "Unfairly Collected" - Treasury Department set forth fees for processing SBA Loans for the Banks to underwrite and then they have to collect data from merchants within a short time to verify that the LOAN will be forgiven.

Less than 90 days from now we will start learning how many "Loans" are not forgiven.
That will be a new round a gnashing of teeth from merchants.

Kevin from SCB may be able to answer this question - when the merchants loan is NOT forgiven, who is responsible for collecting the monthly payments and collections?

As has been stated for the last several weeks on this Forum - there is Zero Money for brokers within the EIDL or PPP Program.

Dave,

If and when these PPP loans start to default the liability is on the company and banks to prove they used the money for intended purposes, but ultimately the defaulted loans will be the responsibility and liability of the banks. Many banks have to increase their loan loss reserves because of the PPP loans which directly impacts their balance sheets and earnings when loans start to default. There is a TON of liability for all of the banks and they will likely eat a large portion of the defaults. It will be interesting to see the default rates vs. fees earned by the banks. I said this months ago.... This is not a way for anyone to make money. It i a huge liability. 1% in fees means the default rate on these loans has to be much less than that just for the banks to break even on the loan. This does NOT include the money spent by banks processing these loan for THEIR customers or the opportunity cost as most bankers have been working 14-20 hours a day 7 days a week processing PPP and not putting out new commercial loans. This has and will upset commercial lending and SBA lending at most banks.
Example: I have been waiting 3 weeks to get a pay-off letter from a regional bank so we can close a much larger working capital facility for their client. The bank has refused to increase their line and has been unable to provide the payoff as they have been trapped in PPP processing land.

Another thing that is NOT helping. There have been some institutions that have been allowed to participate in this round of funding that have been flooding the Fed system with incomplete applications/packages that if underwritten properly by banks would have never been submitted from the get go. This has clogged the pipe and causing delays for small businesses that did the filed properly with their bank and was approved by their bank for the program. All those that are blaming system delays on banks are barking up the wrong tree.

Best,

KH

[Steven_O]

Another thing that is NOT helping. There have been some institutions that have been allowed to participate in this round of funding that have been flooding the Fed system with incomplete applications/packages that if underwritten properly by banks would have never been submitted from the get go. This has clogged the pipe and causing delays for small businesses that did the filed properly with their bank and was approved by their bank for the program.

...this is like MCA ISO's submitting 3 months of statements "for SBA bro".