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Ch capital loan process complete 06012011 Presentation Transcript

  • 1. CH Capital Partners, LLC Loan Process
  • 2. How do we communicate with clients, banks, FMPP• Most of the time, community bank were never suppose to handle clients with multiple entities.• Big banks who were used to multiple entities with MBA’s usually unwritten loans through systems like Moody’s, S&P Financial Models, or CRE Calculators by Mortgage Banking Association• After the great near depression of 2008 and 2009, many wealthy borrowers are now looking for loans, however community banks are not geared to take on the clients. FDIC is encouraging community banks to lend to clients and borrowers with better credit profile, but due to the regulatory environment, level of the underwriting team, and lack of capital (for labor and lending both) community banks are in a near death situation.
  • 3. Current Environment• How many financial institution does it take for SBA 504 loan to get done?• How do we communicate to one another, when we are using different technology, with different experienced people, different sets of ego, and different way of communicating?• Currently everyone uses emails to communicate, but the problems are humans were never suppose to calculate that much information, but now with mobile phones, twitter, Facebook, Email, and other instruments to communicate, rather then working faster with collaborations, we are working longer trying to figure out what each other is saying. That is the reason why borrowers, clients never want to do a SBA 504 loan.• The reason why banks do not want to do the SBA 504 FMPL loan is because of confusion. Confusion in the program, but further because of labor cost. To educate the new underwriters to collaborate with various different underwriting systems and being able to communicate the
  • 4. Misconceptions• Most banks have had experience with CDC’s who used the PCLP license to do the loan. (like PLP and CLP way to lend capital) Each has it’s own function.• The new SBA 504 FMPP program does not allow PCLP, so with that each CDC has to give the files to SBA, get an approval, and need to review the financial decision of the CDC.• There is no standard, standard in the loan. Since SBA 504 loan is a first lien (bank), CDC (SBA) Second Lien, each bank or financial institution decides what their credit appetite. So even-though CH Capital will assist in purchasing the loan for Merrill, Morgan, CS, and rest of the, the problem comes down to communication. How can we communicate remotely when there is no system in place for us communicate, collaborate and come to an agreement with one another.
  • 5. TABLE OF CONTENTS• Stage 1 Page 3 • Prequalification Documents Needed Page 4 • Issue LOI – Bank Requirements Page 5-9 • Fee Agreement Page 10 • Creating CRM Contact Page 11• Stage 2 • Pre Qualify Page 12 • Creating Client Email in SharePoint Page 13-14• STAGE 3 – Loan Approval Page 15• STAGE 4 – Loan Closing Page 16• STAGE 5 – LOAN FUNDING Page 17
  • 6. STAGE 1• Meet with Client• Collect Prequalification Documents• BDO Prescreen / Preflight• Issue LOI• Signed Fee Agreement• Create contact in CRM
  • 7. PREQUALIFICATION DOCUMENTS NEEDED Stage 1 - Loan Application Business Plan Business Year-End Financial StatementsA01 - CDC Application Certificate of Good StandingA03 - CDC Credit Memorandum CIPA04 - Eligibility Questionnaire Compensation AgreementA06 - Statement of Personal History Construction Cost BreakdownA08 - Personal Financial Statement Current Proposed LeaseA09 - Personal Federal Income Tax Return (3 years) Drivers License CopiesA11 - History of Business Fee Disclosure-Borrowers Signature CertA18 - Projections - 12 Month Income & Expense Interim Financial Statements New Business Contract PossibilitiesA23 - Purchase Agreement-Escrow Instruction-Letter to Escrow Ownership Structure MODA30 - Personal Credit Report & Explanations PhotoBank Analysis Preliminary Title ReportBank Balances Projections (Annual)Bank Credit Memorandum & Amendments ResumeBusiness Debt Schedule to Reconcile w Interim Financial Tax Lien ReleaseStatement Tax Return ExplanationBusiness Development Breakdown Non affiliated business tax returnsBusiness Financial Statement * ALL docs should be filed in the stage 1-5 folders
  • 8. ISSUE LOI – BANK REQUIREMENTS SBA 504 and 7a• Hanmi Bank (Page 5) - SBA 504 & 7a• Zion Bank (Page 6 & 7) – SBA 504• CDC Direct (Page 8) – SBA 504
  • 9. HANMI BANK – LOI REQUIREMENTS• Preflight with executive summary and 5 key bullet points• Three year tax return on subject• Three year tax return on personal and any other entities• Payment history for two years• Purpose of loan• Business debt schedule• Personal debt schedule• Collateral description• Brief summary about subject transaction and borrower/guarantor history.• Any issues or risk to the Bank
  • 10. ZION BANK – LOI REQUIREMENTS Loan Package for Owner Occupied PropertiesFor all individuals who hold 20% or greater ownership in the holding company/operating company:___ 1- Personal tax returns for the last three years___ 2- Personal financial statements including schedule of real estate owned dated within the past 30 days___ 3- Permission to pull credit (or a copy of a current credit report)___ 4- Resume or brief personal bio explaining experience___ 5- Verification of liquid assets (i.e. Bank statements, brokerage account statements)For the Operating Company and Affiliates:___ 1- Last three years of tax returns for the holding company, if applicable___ 2- Last three years of tax returns and financial statements for the operating company and affiliates___ 3- Interim financial statement for the operating company and affiliates dated within the last 60 days. Please also provide a YTD financial statement from the same period for the previous year. (Example: 7/30/10 AND a 7/30/09)___ 4- Debt Schedule for the operating company and holding company that matches the debt listed on the interim balance sheet___ 5- Business History and DescriptionOther:___ 1- Property description including SF, year built, construction material, property type (a copy of an old appraisal is very useful.)___ 2- Sources and Uses___ 3- Credit Memo from the referring lender detailing the specifics of the transaction- We basically ask for the same information that you would putinto your own credit write up.For Refinance Transactions:___ 1- A copy of the note to be refinanced, along with the most recent loan balance statement.___ 2- When was the property purchased and what was the purchase price?For Purchase Transactions:___ 1- Copy of purchase agreement
  • 11. ZION BANK – LOI REQUIREMENTS Loan Package for Investor PropertiesFor all individuals who hold 20% or greater ownership in the real estate:___ 1- Personal tax returns for the last three years___ 2- Personal financial statements including schedule of real estate owned dated within the past 30 days___ 3- Permission to pull credit (or a copy of a current credit report)___ 4- Resume or brief personal bio explaining experience___ 5- Verification of liquid assets (i.e. Bank statements, brokerage account statements)For the property:___ 1- Rent roll (we need to know at least: tenant name, suite number, lease commence date, lease end date, SF occupied, lease rate, CAM charges (if applicable)) Vacant space needs to be included.___ 2- Last three years of tax returns and financial statements for the subject property___ 3- Interim financial statement for the subject property___ 4- Copy of existing or proposed leases___ 5- If any one tenant occupies more than 50% of the space OR is responsible for paying 50% or more of the gross rents, the last two years of financial statements on that tenant are required.Other:___ 1- Property description including SF, year built, construction material, property type (a copy of an old appraisal is very useful.___ 2- Sources and Uses___ 3- Credit Memo from the referring bank detailing the specifics of the transaction- We basically ask for the same information that you would put into your own credit write up.For Refinance Transactions:___ 1- A copy of the note to be refinanced, along with the most recent loan balance statement.___ 2- When was the property purchased and what was the purchase price?For Purchase Transactions:___ 1- Copy of purchase agreement
  • 12. CDC DIRECT – LOI REQUIREMENTS• Last year business tax return• YTD business financial statement with corresponding debt schedule• Last year personal return• Personal financial statement• Purchase agreement or letter of interest to purchase the building
  • 13. FEE AGREEMENT • After we have an LOI Issued then we would need to get a fee agreement together and get have the client sign. (Fee agreement can be found in SharePoint) • Collect the deposit for third party fees
  • 14. CREATING CLIENT CONTACT - CRM • Be sure to check that the client does not already have information in CRM • If client is new then add ALL information pertaining to client into CRM – including any spouse and/or children information • After contact has been created • Create the LOAN within CRM – be sure you create this through the clients contact information so that everything is linked properly. ALL loan information needs to be created as well as the OPPORTUNITY added that corresponds with the loan
  • 15. STAGE 2 – PRE QUALIFY • Send Out Welcome Package • Create custom email within SharePoint • Gather Documents • A02 – SBA Form 1244 • A05 – Supplemental • Tax Transcript Request • Upload Information into CRM & SharePoint (In Stage 1-5 folders) • Send Complete Package to Underwriter
  • 16. CREATING CUSTOM EMAIL - SHAREPOINT • To Create Site • Click on “Site Actions” • Click on “New Site” • Under “Team Site” – enter in “Customer name in the “title” box & “URL” box and click – create • Click on the newly created Site & click on “libraries” in left column • Click “site actions” again • Click on “New Document Library” – Then enter “loan name” • Click “yes” on ALL options & then click create ( the loan will then be found in the left column)
  • 17. CREATING CUSTOM EMAIL -SHAREPOINT(Cont.)• Click on the new loan doc library that you just created & at the top of the page in the “ribbon” you’ll see “library tools” • Click on “Library” within the Library Tools ribbon • Within the ribbon you’ll find a button labeled “Library Settings” • Next you want to click on “Incoming Email Settings” • Click “yes” for – “allow document library to receive email & create a SIMPLE email address that’ll be used to upload client docs to SharePoint • Click “yes” for ALL settings and be sure to click at bottom – “Accept email from any sender” – then click “OK”• Your clients email will be • (Whatever u created)@wssv023.e1.serverdata.net
  • 18. STAGE 3 – LOAN APPROVAL• Approval from Underwriter• Order Title – Appraisal & Phase 1 • A27 - Appraisal for Property & SBA Approval • A28 - Environmental - TSA or Phase 1 & SBA Approval • Appraisal Approval • Environmental Approval • Authorization Wizard • C02 - SBA Loan Authorization & 327 Action Letters• Collect Final Documents for Closing
  • 19. STAGE 4 – LOAN CLOSING Closing Documents NeededC08 - Interim Lender Certification - SBA Form 2288 Insurance Personal PropertyC09 - Third Party Lender Agreement - SBA 2287 Insurance REC13 - Title Policy - ALTA Proof of Project Costs & EquityC14 - Filed UCC - 1 Seller Note & DeedC19 - Leases - EPC - OC - Tenant Certs Assignments Site VisitC21 - Flood Insurance - FEMA Form Subordination AgreementC27 - 504 Loan Closing Acknowledgement & Consent Subordination Agreement SellerC29 - Interim Lender-Note & Deed of TrustC40 - ACH Authorization & Voided Check Survey or ILCC41 - Participation Fee Tax IDC42 - Wiring Instructions UCC Subordination
  • 20. STAGE 5 – LOAN FUNDINGAgreements Docs Needed C34 - Trust Agreement - Certification & ResolutionAssignment of Loan Documents C38 - IRS W-9 FormAssignments of Leases & Rents C44 - Injection-Cert Final Closing Statement & CertificationC01 - 504 Debenture Closing Checklist Customer Update Form Lease AddendumC04 - CDC Board Resolution - SBA Form 1528 Lease AssignmentC05 - Promissory Note - SBA Form 1505 Name AffidavitsC06 - Development Company DEB - SBA Form 1504 Non HomesteadC07 - Servicing Agent Agreement SBA Form 1506 SBA FMLP Program Authorization Agreement For PreauthorizedC11 - CDC Certification - SBA Form 2101 Payment - DebitC12 - Opinion of CDC Counsel Statement Settlement ChargesC15 - Unconditional Guarantee - SBA Form 148-148L Third Party Lender Security AgreementC16 - CDC Deed of Trust Title PolicyC17 - Assignment of Deed of Trust UCCC20 - Hazard Insurance UCC Post Filing Search