ValueXpress Obtains $500,000 SBA 7(a) Loan Commitment Prior to Expiration of Stimulus Funds

ValueXpress obtained a $500,000 first-mortgage loan commitment from the SBA on May 28, 2010, just prior to the expiration of the stimulus program on May 31, 2010. “This was a classic case of the extra mile ValueXpress goes for its clients,” explained Michael D. Sneden, Executive Vice President of ValueXpress. “I was contracted by the borrower, a dentist in northern New Jersey, in the first week of May. The borrower indicated that he had a very high-rate, 30-year fixed-rate loan secured by his dental office. He wanted to refinance the loan, but did not want a balloon or a floating rate. I grabbed my computer with my SBA forms and files and headed over to his office on Wednesday May 12. (Yes, a day off for my client, but he doesn’t play golf anyway.) We worked for 6 hours to complete the entire file and wore out his copy machine. I underwrote the deal, obtained a commitment from Country Bank to fund the deal and submitted to the SBA on May 21st, since Country Bank is not a PLP lender in the 7(a) program. We received the SBA guarantee on May 28th and the borrower was very impressed with the effort. The loan was structured as a floating rate with a cap and floor, with the cap set at the same rate as the current fixed rate. So long as the floating rate is below the cap, the borrower wins. We expect the borrower to save over $100,000 over the life of the new loan.”

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This entry was posted in Michael D. Sneden, The Banker's Mortgage Conduit, Valuexpress and tagged . Bookmark the permalink.

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