Boefly Publishes 1Q/2011 Loan Sale Index
Premiums stay on track for normal sized loans but drop for larger loans under new loan size limits.
New York, NY, April 18, 2011 --(PR.com)-- BoeFly, the premier online marketplace connecting lenders with business borrowers and secondary market buyers, today announced the publication of its BoeFly Loan Sale Index (SBA) for the first quarter of 2011. The BoeFly Loan Sale Index tracks the month-to-month variation in premiums paid on the secondary market sales of SBA-guaranteed loans and is a key indicator of the health of small business lending.
BoeFly Loan Sale Index - 1Q/2011 Highlights:
● During Q1, 2011, the new SBA Form 1086 took effect removing the 90 day warranty period for loan buyers. This change assisted lenders in using Gain-On-Sale treatment immediately
● Lenders began to take advantage of the new $5,000,000 loan size cap and sell larger loans on BoeFly. Larger loan sizes were shown to have a negative impact to premium. A P+2.75% loan at $1,500,000 received a 112.5% premium vs. a loan double in size at $2,800,000 receiving a 108% premium
● The BoeFly Loan Sale Index for 10-year Prime+2 loans retreated slightly from 4Q level of 108.53% to end the quarter at 108.36%. 25-year Prime+2 loans rose slightly from the end of 4Q, edging up from 110.45% to 110.53%
● Individual highs for 25-year deals were moderately lower, with 25-year P+2.75 loans topping out at 113.67% and 10-year deals reaching 110.57%.
About The Boefly Loan Sale Index (Sba):
The BoeFly Loan Sale Index (SBA) measures premiums paid on secondary market loan sales on a monthly basis. Based on aggregated transaction data from BoeFly, the only marketplace where lenders can connect with business borrowers and secondary market buyers, the Index provides an estimate of the premium a newly issued, 10 or 25 year Prime + 2% loan would fetch. The Index represents aggregated data from actual loan sales by banks. Members of BoeFly have access to full transaction detail on all loans presented for sale. With only slight changes in loan structure driving premiums, lenders rely on BoeFly loan sale data to optimally structure deals in light of what the market is currently valuing. BoeFly is the only service to provide actual bid levels based on loans presented for sale on BoeFly.
About Boefly
BoeFly is the only online marketplace harnessing technology to dramatically simplify the execution of commercial transactions, including loan origination and sales. BoeFly revolutionizes commercial transactions by seamlessly connecting all parties, including lenders, borrowers, investors, buyers and sellers to a potential transaction and facilitating the efficient completion of these transactions. For small business lenders, BoeFly also provides the ability to sell the government-guaranteed portion of their loans on the secondary market to investors and Small Business Administration (SBA) loan pool assemblers, freeing up liquidity for even more small business lending.
Key to the success of BoeFly is the site’s dynamic compatibility technology, which matches parties based on a specific set of criteria. Also, to help BoeFly’s subscribers complete transactions, BoeFly offers access to service providers in a wide variety of professions – from appraisers to closing attorneys to environmental consultants. To learn more about BoeFly please visit www.boefly.com
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BoeFly Loan Sale Index - 1Q/2011 Highlights:
● During Q1, 2011, the new SBA Form 1086 took effect removing the 90 day warranty period for loan buyers. This change assisted lenders in using Gain-On-Sale treatment immediately
● Lenders began to take advantage of the new $5,000,000 loan size cap and sell larger loans on BoeFly. Larger loan sizes were shown to have a negative impact to premium. A P+2.75% loan at $1,500,000 received a 112.5% premium vs. a loan double in size at $2,800,000 receiving a 108% premium
● The BoeFly Loan Sale Index for 10-year Prime+2 loans retreated slightly from 4Q level of 108.53% to end the quarter at 108.36%. 25-year Prime+2 loans rose slightly from the end of 4Q, edging up from 110.45% to 110.53%
● Individual highs for 25-year deals were moderately lower, with 25-year P+2.75 loans topping out at 113.67% and 10-year deals reaching 110.57%.
About The Boefly Loan Sale Index (Sba):
The BoeFly Loan Sale Index (SBA) measures premiums paid on secondary market loan sales on a monthly basis. Based on aggregated transaction data from BoeFly, the only marketplace where lenders can connect with business borrowers and secondary market buyers, the Index provides an estimate of the premium a newly issued, 10 or 25 year Prime + 2% loan would fetch. The Index represents aggregated data from actual loan sales by banks. Members of BoeFly have access to full transaction detail on all loans presented for sale. With only slight changes in loan structure driving premiums, lenders rely on BoeFly loan sale data to optimally structure deals in light of what the market is currently valuing. BoeFly is the only service to provide actual bid levels based on loans presented for sale on BoeFly.
About Boefly
BoeFly is the only online marketplace harnessing technology to dramatically simplify the execution of commercial transactions, including loan origination and sales. BoeFly revolutionizes commercial transactions by seamlessly connecting all parties, including lenders, borrowers, investors, buyers and sellers to a potential transaction and facilitating the efficient completion of these transactions. For small business lenders, BoeFly also provides the ability to sell the government-guaranteed portion of their loans on the secondary market to investors and Small Business Administration (SBA) loan pool assemblers, freeing up liquidity for even more small business lending.
Key to the success of BoeFly is the site’s dynamic compatibility technology, which matches parties based on a specific set of criteria. Also, to help BoeFly’s subscribers complete transactions, BoeFly offers access to service providers in a wide variety of professions – from appraisers to closing attorneys to environmental consultants. To learn more about BoeFly please visit www.boefly.com
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BoeFly
Bill Fallon
212-925-6900
www.boefly.com
Bill Fallon
212-925-6900
www.boefly.com
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