According to Jordan Blanchard at CDC Direct, May was a very active month for SBA 504 First Mortgage Pool (FMP) originators. Four pools settled a total of just over $18 million (guaranteed portion). Total 504 FMP volume through May 2011 is $135.7 million. With 18 pools issued to date, the average guaranteed interest approximates $7.5 million. The total number of loans pooled stands at 96. The average gross loan amount is $1,767,885.
The SBA FMP program allows lenders to sell 85% of the first mortgage provided in an SBA 504 transaction to a pool originator, retaining 15%. The sale provides premium and servicing income to the selling bank and reduces loan exposure. The pool originator will sell 80% of the loans to investors, who receive an SBA guarantee as security. The pool originator retains the 5% balance. The FMP program offers the most flexibility to sellers because it allows the lender to set the approval criteria. All property types eligible for SBA financing are eligible for FMP pooling.