Venture Would Pool Small-Business Loans for Community Banks

By Arndorfer, James B.; Oppenheim, Sara | American Banker, March 24, 1997 | Go to article overview

Venture Would Pool Small-Business Loans for Community Banks


Arndorfer, James B., Oppenheim, Sara, American Banker


A California securitizing firm and CFI Proservices Inc., the banking software company, plan a venture to securitize small-business loans made by community banks.

CFI and TIS Financial Services said the venture, which they plan to call Loan Origination Management and Exchange Corp., would start operating early next year.

They've already nicknamed it: Lori Mae.

TIS, based in San Francisco, now securitizes mortgages and other asset backed loans. The securitization of nonguaranteed small-business loans would allow community banks to make more loans and generate fee income from servicing the loans without risking additional capital.

"I think the reception will be overwhelming," said Matt Chapman, chairman and chief executive officer of CFI Proservices. "It's profitable for banks to do this."

Initially, Lori Mae would limit loan amounts to $250,000. But Tom Sidley, who will be Lori Mae's chief operating officer, estimates it could securitize $250 million of small-business loans in 1998.

The securitization of small-business loans is currently dominated by nonbank lenders who sell the guaranteed or nonguaranteed portions of their Small Business Administration loans.

Nearly half of all SBA loans are securitized, but the market for other small-business loans has been hampered by a lack of standardized loan documentation and terms.

More than $21 billion in SBA loans have been securitized since 1977, but Mr. Chapman estimates that only $1.5 billion in loans without government guarantees have been securitized. Lori Mae would securitize such loans.

Initially, Lori Mae would focus on securitizing lines of credit secured by accounts receivable and term loans for equipment. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Venture Would Pool Small-Business Loans for Community Banks
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.