15 U.S.C. § 657t: Office of Credit Risk Management

There is established within the Administration the Office of Credit Risk Management (in this section referred to as the “Office”). any lender making loans under section 7(a) [ 15 U.S.C. 636(a) ] (in this section referred to as a “7(a) lender”); any Lending Partner or Intermediary participant of the Administration in a lending program of the Office of Capital Access of the Administration; and any small business lending company or a non-Federally regulated lender without regard to the requirements of section 650 of this title . The Office shall be headed by the Director of the Office of Credit Risk Management (in this section referred to as the “Director”), who shall be a career appointee in the Senior Executive Service (as defined in section 3132 of title 5 ). The Director shall be responsible for oversight of the lenders and participants described in subsection (b), including by conducting periodic reviews of the compliance and performance of such lenders and participants. be present for and supervise any such review that is conducted by a contractor of the Office on the premise 1 of the 7(a) lender; and 1 So in original. Probably should be “premises”. supervise any such review that is not conducted on the premise 1 of the 7(a) lender. deliver a written report of the review to the 7(a) lender not later than 60 business days after the date on which the review is concluded; or if the Administrator expects to submit the report after the end of the 60-day period described in clause (i), notify the 7(a) lender of the expected date of submission of the report and the reason for the delay; and if a response by the 7(a) lender is requested in a report submitted under subparagraph (A), require the 7(a) lender to submit responses to the Administrator not later than 45 business days after the date on which the 7(a) lender receives the report. The Administrator may extend the time frame described in subparagraph (A)(i)(II) with respect to a 7(a) lender as the Administrator determines necessary. The Director may take an informal enforcement action against a 7(a) lender if the Director finds that the 7(a) lender has violated a statutory or regulatory requirement under section 7(a) [ 15 U.S.C. 636(a) ] or any requirement in a Standard Operating Procedures Manual or Policy Notice related to a program or function of the Office of Capital Access. a statutory or regulatory requirement under section 7(a), including a requirement relating to credit elsewhere; or any requirement described in a Standard Operating Procedures Manual or Policy Notice, related to a program or function of the Office of Capital Access. An enforcement action imposed on a 7(a) lender by the Director under subparagraph (A) shall be based on the severity or frequency of the violation and may include assessing a civil monetary penalty against the 7(a) lender in an amount that is not greater than $250,000. A 7(a) lender may appeal an enforcement action imposed by the Director described in this subsection to the Office of Hearings and Appeals established under section 634(i) of this title or to an appropriate district court of the United States. Not later than 1 year after June 21, 2018 , the Administrator shall issue regulations, after opportunity for notice and comment, to carry out subsection (e). During any period during which a 7(a) lender is suspended or otherwise prohibited from making loans under section 7(a) [ 15 U.S.C. 636(a) ], the 7(a) lender shall remain obligated to maintain all servicing and liquidation activities delegated to the lender by the Administrator, unless otherwise specified by the Director. The Director shall annually conduct a risk analysis of the portfolio of the Administration with respect to all loans guaranteed under section 7(a). an analysis of the overall program risk of loans guaranteed under section 7(a); an analysis of the program risk, set forth separately by industry concentration; the dollar value of the loans made by such 7(a) lenders; and the number of loans made by such 7(a) lenders; steps taken by the Administrator to mitigate the risks identified in subparagraphs (A), (B), and (C); the number of 7(a) lenders, the number of loans made, and the gross and net dollar amount of loans made; the number and dollar amount of total losses, the number and dollar amount of total purchases, and the percentage and dollar amount of recoveries at the Administration; the number and type of enforcement actions recommended by the Director; the number and type of enforcement actions approved by the Lender Oversight Committee established under section 657u of this title ; the number and type of enforcement actions disapproved by the Lender Oversight Committee; and the number and dollar amount of civil monetary penalties assessed. include salaries and expenses of the Office and the charge for the lender oversight fees; be submitted at or about the time of the budget submission by the President under section 1105(a) of title 31 ; and be maintained in an indexed form and made available for public review for a period of not less than 5 years beginning on the date of submission and justification. If the Administrator [of the Small Business Administration] exercises statutory or regulatory authority to waive a regulation or a requirement in the Standard Operating Procedures Manual or Policy Notice related to a program or function of the Office of Capital Access of the [Small Business] Administration, the waiver shall be in writing and be maintained in an indexed form. Nothing in subsection (a) shall be construed as creating new authority for the Administrator to waive regulations of the Administration.”