Tightening credit spreads for U.S. CMBS since the highs reached in the first quarter of 2009 should continue to spur new CMBS issuance in the near term, according to Standard and Poors (S&P). The agency notes that issuance for the fourth quarter of 2010 could fall within $4-$8 billion, the … [Read more...] about 11.26.10: $35-Billion U.S. CMBS Issuance Forecast for 2011
Archives for November 2010
11.22.10: Banks Can Use the SBA 7(a) Program to Reduce Portfolio Risk
A traditional strategy for reducing portfolio risk is to tighten lending standards and reduce availability of credit. This strategy is particularly harmful to small businesses that rely heavily on access to debt for sustainability and growth. The 7(a) program allows banks to have the best of all … [Read more...] about 11.22.10: Banks Can Use the SBA 7(a) Program to Reduce Portfolio Risk
11.16.10: CMBS Deal Flow Picks Up According to Recent MBA Survey
Third-quarter loans for conduit CMBS grew 940% compared with the same quarter of 2009, according to the Mortgage Bankers Association's Third-Quarter Origination Survey. The average third-quarter 2010 loan size was $30.5 million versus $18.2 million a year ago. The average conduit loan size in the … [Read more...] about 11.16.10: CMBS Deal Flow Picks Up According to Recent MBA Survey
11.10.10: SBA Form 1086 Warranty Period Removal to End the Delay in Sale Treatment
As part of a new rule change, the SBA is removing the 90-day warranty period from Form 1086, the participation form required on SBA 7(a) loan sales. While the warranty is in effect, the seller is prevented from taking sale treatment, in accordance with FAS 166, for 90 days. The changed form is now … [Read more...] about 11.10.10: SBA Form 1086 Warranty Period Removal to End the Delay in Sale Treatment
11.5.10: Solutions Proposed to Split Large SBA 7(a) Loan Guarantees
Solutions to the issue of relatively poor loan guarantee sale bids in the secondary market for loan guarantees that exceed the former limit of $1.5 million for SBA 7(a) loan guarantees were recently discussed by Bob Judge, Partner of Government Loan Solutions, and Bob Coleman, Editor of the Coleman … [Read more...] about 11.5.10: Solutions Proposed to Split Large SBA 7(a) Loan Guarantees
11.2.10: Low Premiums on Larger SBA Loan Guarantees
SBA loan guarantee assemblers (often referred to as “poolers”) buy SBA loan guarantees [primarily SBA 7(a)] at a premium from banks and other originators usually on a one-off basis. Banks sell the guarantees to earn up-front income that flows to the bank’s bottom line and are able to reduce the … [Read more...] about 11.2.10: Low Premiums on Larger SBA Loan Guarantees
