Appendix 2 Credit Extension /Servicing Checklist

A2-1

Agency:

Program:

Amount Owed:

Date Debt Incurred:

The Application

1. Has the application been completed and does it contain:

a) Identifying Information:

full name of applicant? YES NO

address of applicant? YES NO

telephone number of applicant? YES NO 

taxpayer identification number (TIN)/certification? YES NO 

full name(s) of all co-borrower(s)? YES NO

co-borrower(s)' address? YES NO

co-borrower(s)' telephone number? YES NO

co-borrower(s)' TIN? YES NO

b) Financial Information:

amount of annual income and sources? YES NO

account numbers of bank accounts? YES NO

name(s) and address(es) of employer(s)? YES NO

real and personal assets? YES NO

names and addresses of creditors? YES NO

account numbers of amounts owed? YES NO

schedule of payments including frequency? YES NO

total amount of outstanding debt? YES NO
CreditExtension/Servicing Checklist

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c) Information on Collateral:

location? YES NO

estimated value? YES NO

d)

description?

Statements/Signatures:

all required certifications signed and dated?

YES

YES

NO

NO

Screening and Analysis

2. Has the application been screened against:

IRS' delinquent tax files?

CAIVRS?

Treasury/Fiscal Service Debt Check Program?

If no, was a reason given as to why it has not been documented

in the files?

YES 

YES

YES

YES

NO 

NO 

NO

NO

3. Has a credit report been purchased?

If no, has a reason been documented in the files?

YES

YES

NO 

NO

4. Has the information on the application been confirmed using:

credit reports? YES NO

verification of employment and benefits?

suppliers?

references?

YES

YES

YES

NO

NO 

NO

5. Has the credit report been used to assist in performing a

credit analysis? YES NO

6. Has a credit analysis been performed?

If not, has a reason been documented in the files?

Have the results of the credit analysis been documented

in the files?

YES 

YES

YES

NO 

NO

NO
CreditExtension/Servicing Checklist

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7. Has the statement/form certifying that the borrower was informed

of the Government's debt collection policies (i.e., debt collection

certification) been signed and dated by the borrower? YES NO

8. Has the loan been rated?

If not, has a reason been given and documented in the files?

Has the documentation supporting the loan rating been maintained?

YES 

YES 

YES

NO 

NO 

NO

9. Has an independent collateral appraisal been obtained?

Has that appraisal been documented in the files?

YES 

YES

NO 

NO

10. Have audited financial statements or income tax returns been used 

to evaluate the loan? YES NO

11. For a commercial loan, has analysis been conducted on:

balance sheet and income statement? YES NO

market share and marketing strategy?

management ability?

working capital?

the strength of competition?

If not, have reasons been given for specific omissions and have

these reasons been documented in the files?

YES

YES 

YES 

YES

YES

NO

NO 

NO 

NO

NO

12. Are the following documents in the file:

application? YES NO

credit report?

verification documents?

analyses of the application?

appraisal of collateral?

legal documents relating to the loan?

non-delinquency certification (if not contained

on application)?

debt collection certification?

record that applicant has paid all origination/application fees?

loan or services agreement with the debtor containing:

all applicant identifying information?

collateral description, location and worth?

terms of the agreement?

YES

YES

YES 

YES 

YES

YES 

YES 

YES

YES 

YES 

YES

NO

NO 

NO 

NO 

NO

NO 

NO 

NO

NO 

NO 

NO
CreditExtension/Servicing Checklist

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13. Is the following information in the file:

identifying information for the borrower and co-borrower(s)?

amount and nature of the debt?

status of the account?

summaries of contacts with the debtor(s)?

YES 

YES 

YES 

YES

NO 

NO 

NO 

NO

14. If required, has an escrow account been established? YES NO

15. Is there a record of regular billings and payments? YES NO

16. If a new receivable, has the debtor been informed of

accrual of all late charges?

his/her due process rights?

amount of debt and basis of indebtedness?

deadline for payment?

possible collection actions?

requirement to provide taxpayer identification number?

YES 

YES 

YES 

YES 

YES

YES

NO 

NO 

NO 

NO 

NO 

NO

17. Is the condition of the collateral regularly determined?

Are regular reports on the condition of collateral documented?

Is insurance coverage being maintained on the collateral?

Is adequacy of the insurance coverage being regularly

reassessed and changed as needed?

YES

YES 

YES

YES

NO 

NO 

NO

NO

18. Has the loan been classified annually?

If not, has a reason been given and documented in the file?

Has the basis for the classification been maintained in the file?

YES

YES

YES

NO 

NO 

NO

notification of rights of debtor and Government? YES NO

right to call full amount due and payable upon

delinquency/default? YES NO

requirements for maintenance/insurance of collateral? YES NO

provisions for assessment of late charges? YES NO

copies of checks or receipts for payment of loan? YES NO

application or origination fees? YES NO

Servicing

agency policy on:
CreditExtension/Servicing Checklist

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19. Is financial information updated annually, where appropriate? YES NO

20. Has the account information been reported to the appropriate

consumer and commercial credit bureaus? YES NO

If the debt has been referred, has the date of initial referral

and the names of the credit bureaus to which the debt

was referred been indicated in the files? YES NO

If no, has the reason been given and documented? YES NO
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