WP# 1FLP205 Rev. 02-02-11
KANSAS SUPPLEMENT TO
NATIONAL FORM FSA-2119 “Delinquent Borrower Servicing File Review Questionnaire”
INSTRUCTIONS FOR PREPARATION
Purpose:
This document will be used as a reference guide in answering the questions on Form FSA-2119 for delinquent borrower
servicing credit quality reviews in Kansas. This supplement is not intended to be attached to each FSA-2119. Items 1A-
J, 3A-3C, and 4A-4E are self explanatory and instructions for completion are not provided here. Contact the State Office
if additional guidance is needed. Write employee’s name and score in upper right hand corner of Form FSA-2119 *-
-and file in the FLP county operational FLP 1-4-1 “Credit Quality Review Sheets”, DD’s will submit a copy of the
form to the FLP Division. Do not place a copy of the FSA-2119 in the borrower’s case file. --*
Item No./Field Name Instruction
2A The processes for delinquent account servicing are detailed in 5-FLP. If a
Did FLM complete FSA- completed FSA-2580, Primary and Preservation Loan Servicing
2580 and include it as part Checklist, per 5-FLP, Par. 67 B, is included, the reviewer will answer YES.
of the documentation? If not, the reviewer will answer NO.
2B Per 5-FLP, Par. 66. If the reviewer finds supporting documentation that all
Did FLM properly notify all liable parties were timely notified of their servicing options, the reviewer
liable parties of their will answer YES. If not, the reviewer will answer NO.
servicing options?
2C The source of prices used in FBP must be according to 1-FLP, Par 241B.
Were realistic commodity States are to issue established unit prices for all commodities commercially
prices clearly documented produced within the State. Reference 1-FLP KS Exhibit 8 for current prices
and used to develop the and the FLP Intranet web site for historical prices. If State-established
FBP? prices are not used, the prices used must be fully documented.
If realistic commodity prices were clearly documented and used to develop
the FBP, the reviewer will answer YES. If not, the reviewer will answer NO.
2D Source of yields in the Projected Income and Expense Schedules of FBP
Were realistic must be clearly documented in the file and be according to 1-FLP, Par
commodity/livestock yields 241B.
clearly documented and used
to develop FBP? If realistic commodity/livestock yields were used in the projected FBP, the
reviewer will answer YES. If not, the reviewer will answer NO.
2E Owner withdrawals in the Projected Income and Expense Schedules of
Were realistic owner FBP will be based on historical information and will be used as a guide.
withdrawals clearly Applicant is to provide 3 year’s family living expenses, and if not available,
documented and used to there is documentation as to why this is not available and how the
develop the FBP? projection was calculated. 5-FLP, Par. 81.
Owner withdrawals must include all non-farm liability payments for the
planned period. Realistic SS & income taxes projections should be
included on the appropriate line of the Non-Operating section of FBP.
If realistic owner withdrawals were clearly documented and used to develop
the FBP, the reviewer will answer YES. If not, the reviewer will answer NO.
If the borrower is an entity, the reviewer will answer N/A.
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WP# 1FLP205 Rev. 02-02-11
Item No./Field Name Instruction
2F Operating expenses in the Projected Income and Expense Schedules of
Were realistic operating FBP will be based on accurate, verifiable information. Historical information
expenses used to develop the will be used as a guide, according to 1-FLP, Par. 241 B.
FBP?
Positive and negative trends, mutually agreed upon changes and
improvements, and current input prices will be taken into consideration
when arriving at reasonable projections. If deviated from history or if using
trends, this should be documented (Prefer documentation be in Capacity
Section of FBP)
If realistic operating expenses were used to develop the FBP, the reviewer
will answer YES. If not, the reviewer will answer NO.
2G Non-farm income must be verified when used in the Projected Income and
Were non-farm income and Expense Schedules of FBP. Verification of non-farm income is required as
other-farm income verified set out in 5-FLP, Par. 81 G.
and properly included in the
FBP? Verification methods include FSA-2014, Verification of Income, most recent
earning statements, tax records, written or verbal projection of FP benefits,
historical trends to support custom work, etc. Any deviations between the
verification obtained and the FBP should be documented.
If non-farm income and other-farm income included in the FBP are
properly verified, the reviewer will answer YES. If not, the reviewer will
answer NO.
2H Does the PLAS SM Review will need to review the PLAS SM screen to assure that the date,
screen match FSA 2026, amounts, rates, terms, match the Promissory Note.
Promissory Note?
If all items match, the review will answer YES. If not, the reviewer will
answer NO.
2I See 1-FBP, Exhibit 15, FSA User Handbook for guidance on entering
Has the Balance Sheet Loan various debts and proposed loans in FBP. Appropriate balance sheets and
Schedule been completely operating plans must be developed and used to prepare the DALR$ Input
correctly? Report in the FBP Credit Action as provided in 5-FLP.
If the Loan Schedule Balance Sheets have been completed according to
the FSA FBP User Handbook, the reviewer will answer YES. If not, the
reviewer will answer NO.
2J Feasibility is determined by the projected income and expenses for the
Using realistic inputs, does planned business period and will be dependent upon the type of financing
the FBP support the final proposed, if any. 5-FLP outlines the items to consider in determining
outcome of loan servicing? feasibility for various servicing options.
The reviewer must review the Projected Income/Expense plan and the
Credit Action narrative to determine the type of financing proposed or
approved and analyze Margin After Debt Service (MADS) and Ending Cash
from the projected column of the Income/ Expense Trends report to
determine if the plan was feasible. 1-FLP, Exhibit 15, FBP-FSA User
Handbook.
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WP# 1FLP205 Rev. 02-02-11
Item No./Field Name Instruction
2 J Cont. The Ending Cash on Hand and the MADS must be positive.
If any of the data input for questions 2C through 2H were noted as not
being realistic, the reviewer must make mathematical computations to
determine whether realistic inputs would have changed the cash flow
outcome.
If FBP was feasible at the time of loan or servicing approval, the reviewer
will answer YES. If not, the reviewer will answer NO.
2K Per 5-FLP, Par. 101, If the documentation in the case file indicates that the
If a complete application was DALR$ was run and the borrower was notified of the results within the
submitted, did the servicing required timeframe of 60 days the reviewer will answer YES. If not, the
official process the application reviewer will answer NO.
and run DALR$ within 60
days?
2L Plan feasibility will determine the appropriate servicing form to be mailed to
If a feasible plan was the borrower. 5-FLP, Par. 116 provides guidance on forms to be mailed. If
developed, was the borrower a feasible plan was developed and the borrower was mailed the appropriate
sent FSA-2517, “Offer of form the reviewer will answer YES. If not, the reviewer will answer NO. *--
Primary Loan Servicing For If no feasible plan found, the reviewer will answer N/A.--*
Borrowers Who Received
Form FSA-2510 or FSA-2514
and Applied for Servicing” or
FSA-2519, “Offer of Primary
Loan Servicing (for Borrowers
Who Received Form FSA-
2512 and Applied for
Servicing)”?
2M *--Was the borrower notified using the appropriate form as detailed in 5-
If FSA was unable to FLP, Par. 116 or Par. 85, if FSA was unable to provide PLS assistance due
provide PLS assistance, to no feasible plan found, or the borrower is ineligible for loan servicing, or
was the borrower sent FSA- the borrower fails to apply for loan servicing, or the borrower did not accept
2521, “Denial Of Primary the servicing offer?--* If the borrower was notified appropriately the
Loan Servicing And Intent To reviewer will answer YES. If not, the reviewer will answer NO.
Accelerate”, FSA-2523,
“Denial of Primary Loan
Servicing for Borrowers Who
Received FSA-2512 and
Applied for Servicing” or FSA-
2525, “Intent to Accelerate for
Borrowers who Received
Form FSA 2510 and did not
apply for servicing or did not
accept servicing”?
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WP# 1FLP205 Rev. 02-02-11
Item No./Field Name Instruction
2N A comparison of previous appraisals, documentation of previously identified
Did the FLM consider the nonessential assets and current data, as further described in 5-FLP, Par.
application of sale proceeds 104, will need to be made to determine if nonessential assets existed at the
from other nonessential time the servicing action was offered to the borrower.
assets before offering PLS or
current market value buyout? If nonessential assets were properly considered, the reviewer will answer
YES. If not, the reviewer will answer NO. If there were no nonessential
assets, the reviewer will answer N/A.
*--Also note the following item under Section 4E, Remarks of Form FSA-2119:--*
The Credit Quality Score = (# Questions Answered Yes / Possible Questions (13 max)) x 100.
- All of the critical questions (2A, 2B, 2I or 2L) must be answered “Yes” to receive a passing
score.
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