SOP 50 10 8.1: the lender-commissioned QoE on $3M+ deals after October 1, and what it means for your LOI number

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by a professional from Harvard University
in Atlanta, GA, USA

1h ago

SOP 50 10 8.1: the lender-commissioned QoE on $3M+ deals after October 1, and what it means for your LOI number

Heads up for anyone with a $3M-plus deal closing after October 1. SOPredactedrequires a lender-commissioned Quality of Earnings on those acquisitions, borrower-paid, before the loan number issues. Practical effect: the seller's add-back schedule now gets tested against bank data before close, so the number you underwrite on LOI needs to be the one that survives that test. I wrote up what the rule says and how the credit desk reads the output: redacted. Happy to answer questions on what a QoE actually tests.

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