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
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
10.29.10: SBA 7(a) Applications Brisk Until End of Year
ValueXpress is experiencing an extraordinary flow of SBA 7(a) applications that is expected to continue through yearend. The demand for 7(a) loans is a result of the combination of fee waivers, higher guarantees (90% versus 75%) and higher loan limits for borrowers ($5 million). ValueXpress received … [Read more...] about 10.29.10: SBA 7(a) Applications Brisk Until End of Year
10.26.10: ValueXpress and Lumbee Guaranty Bank Obtain SBA 7(a) Approval
ValueXpress and Lumbee Guaranty Bank, based in Pembroke, NC, recently teamed up to secure a $1,950,000 SBA 7(a) loan commitment secured by a 57-room Country Inn & Suites hotel located on I-95 in Lumberton, NC. The borrower is a client of both ValueXpress and Lumbee Guaranty Bank. ValueXpress … [Read more...] about 10.26.10: ValueXpress and Lumbee Guaranty Bank Obtain SBA 7(a) Approval
10.20.10: ValueXpress CMBS Partner Seeks Multifamily Loans
Multifamily property loans have been slow to return to CMBS conduit transactions, primarily due to the high leverage and low initial DSCR that has resulted in poor performance of multifamily properties in CMBS transactions. According to Trepp, 14.4% of multifamily transactions are delinquent as of … [Read more...] about 10.20.10: ValueXpress CMBS Partner Seeks Multifamily Loans
10.15.10: CMBS Prices Continue to Rise
For the week ended October 15, spreads on recent vintage super senior AAA-rated CMBS tightened 8-12 basis points (bp). The spread of 265 on the GG10’s on October 15 was the tightest closing level for that bond in 2010 to date. The GSMS 2007-GG10 A4 bond outperformed the broader market as … [Read more...] about 10.15.10: CMBS Prices Continue to Rise