Fresh Off Their First PPP Loan Forgiveness Denial Appeal Win, Johnston Thomas Shares Key Steps To File A Successful AppealRead Now
TMC preferred partner law firm, Johnston Thomas, has been providing critical assistance to numerous IMBs and credit unions that had their Payment Protection Plan (PPP) Loan Forgiveness Applications (“Application”) denied by the SBA. With Johnston Thomas’s Mortgage Banking Practice indicating its ongoing efforts are already proving to be successful, its Chairman, James Brody, shared some invaluable tips to help other mortgage bankers increase their chances of filing successful appeals.
Per James, if your Application has been denied, the steps that you must take in order to file a successful appeal, include, but are not limited to, the following:
(1) Carefully review the Loan Decision Letter, which should indicate the official reason(s) for denial and provide you with a roadmap of those issues that must be thoroughly addressed in your Appeal.
(2) Collect any and all documentation that can support the arguments made in your Appeal and include them as exhibits, such as letters and notices from investors about delays caused by COVID and record volume.
(3) Ensure your Appeal is properly filed within thirty (30) calendar days from receipt of the SBA’s final loan review decision.
(4) Provide your lender with a copy of the Appeal, which will cause the lender to extend the deferment period of the PPP loan until a final decision has been made.
(5) Understand that the appellate process is not over once you submit your Appeal and be mindful of additional actions that may need to be taken after the filing (i.e., such as filing a timely objection to the Record where warranted). Although there is more involved in the filing of a successful appeal, these tips are critical for your Appeal to have any chance of success.
Although it can take months to work your way through the appeals process, Johnston Thomas’s early efforts have already proven to be successful, and they are confident in their chances of achieving similar results for the other clients they are representing. In addition to Johnston Thomas being well situated to assist mortgage bankers with their appellate needs, its team of mortgage banking attorneys can assist your company with all its compliance and industry related legal needs (e.g., LO compensation, contract negotiations, licensing, trademark, employment, CFPB/State audits, ransomware/data breach, joint ventures, marketing service agreements, M&A, litigation and more). If you are a TMC member in need legal support or consultation, please contact James, to schedule a complimentary 30-minute consultation, which is made available as a valuable member benefit.