Loan Servicing

1
Loan Servicing

• By LSAs

2
LSA Loan Servicing

• Cash repayments at 22-CN para 51
• Receive repayment request from producer or agent
• Compute repayment amount
• If applicable compute denied benefits for PE and
  PCF
• Accept repayment and deposit at CCB
• Release EWRs
• Distribute repayment document

3
Denied Benefit Because of PE

• Each individual designates his share of a
  permitted entity
• Any share of an entity which is not designated
  may result in a PE factor of less than 1.0000
• PE factor is applied to LDPs and loan market
  gains
• Monitor field 17

4
Denied Benefit Because of PCF

• PCF may be less then 1.000 when producer
• does not provide active personal labor or
  management
• is actively engaged and eligible on a portion of
  a farm because of landowner provision
• is a cash rent tenant and ineligible for payment
  for the cash rented land
• Monitor field 18

5
Loan Servicing

• Certificate Redemptions at 22-CN para 52
• Not subject to payment limit
• Not reported to IRS unless IRS directs FSA to do
  otherwise
• Prepare CCC 694-2 for producer signature
• Agents execute CCC-605 Part E
• Accept repayment and deposit to CCB
• Release receipts
• Distribute repayment document

6
Loan Servicing (Contd)

• Maturity date notification letter in 22-CN para
  53E
• Charges due on forfeited loans in para 54
• Statement of charges from COPS
• Send producer notification and collect
• If not paid after 30 days, refer to county office
• LSA document examples

7
Offsets for CCC Claims

• Offsets triggered by field 67 of CMA process
  record
• Applicable to loans and LDPs
• Offsets have priority over assignments
• If lien holders wont sign waiver, producer is
  ineligible
• Contact the admin county office

8
Assignments

• Applicable to LDPs only
• Triggered by field 68
• Locate the assignment
• Issue applicable amounts to assignee
• Notify admin county office

9
Reports

• Section 1614 per 1-CMA para. 555
• Next submission due Oct 15
• Federal Funding Accountability and Transparency
  Act of 2006

10
Pop Quiz
11
Can a producer redeem an ELS loan with a
certificate?
12
No
13
Can a producer assign loan proceeds?
14
No