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Special Reports
Commercial Lending
CBA Commercial Starts Small Balance Program
By Jennifer Harmon
STAMFORD, CT -- CBA Commercial LLC has launched the CBA Commercial Authorized
Lender Program, specifically designed to provide marketing, underwriting and closing services for small-balance
multifamily, commercial and mixed-use commercial loans in the $100,000 to $3 million range.
The program targets financial institutions and mortgage lenders seeking additional
sources of revenue as well as support services specifically tailored to conducting business in the small-balance
commercial real estate market.
"Although the small-balance commercial mortgage loan market has long been
one of the most important American business sectors, it has been largely underserved and ignored in the past because
it takes significant time and effort to fund each transaction," said William Komperda, chairman and chief
executive officer, CBA Commercial. "Now with loan standardization and built-in operating efficiencies, we've
simplified the loan process and made it profitable for our partners."
The CBA Commercial Authorized Lender Program has made the mortgage loan process
for small-balance commercial properties a very attractive service for almost any type of financial institution
to offer its clients, said Mr. Komperda. The company's approach takes you from a streamlined application process
through closing. It offers Web-based prequalification and helps manage loan underwriting, due diligence, all third-party
services and closing. CBA Commercial provides standardized documents and minimizes risk by reducing required loan-level
reps and warranties.
"Your borrowers' costs are lower and closings are fast and efficient. As
a result, you have the confidence and flexibility to expand your customer relationships and generate fee income."
The program highlights include loan amounts from $100,000 to $3 million, as well
as multifamily, office, retail, light industrial and mixed-use property types. The program includes full and state
documentation, average FICO scores of 675, as well as two-, three-, five-, seven- and 10-year ARM products in which
the fixed period resets to a six-month LIBOR. The program also includes 30-year final maturities and 30-year amortization.
Traditionally, banks and small- to medium-sized mortgage companies were known
to service this market, but not on a consistent, thorough basis, according to Chip Andrews, president and chief
operating officer.
"In our research we're finding that larger, well-capitalized lenders will
now have the confidence to write these small balance loans under the program," Mr. Andrews said.
"By following our standardized, streamlined process, the number of completed
loans can be dramatically increased. At the same time, we've made it easier for banks, mortgage brokers and bankers
by offering table funding. Whether buying or funding the loan, the CBA Commercial Authorized Lender Program offers
flexibility to the lender.
"With the table-funding option, an originator can reduce risk by limiting
the required loan-level representations and warranties," he said. "This provides an incentive for the
originator to seek out more of these heretofore difficult-to-originate loans."
The company does not compete with its authorized lender partners who may also
receive marketing support to promote their balance commercial loan business.
It draws on experience of its founding partners, CBA Receivables LLC, a residential
mortgage securitization firm, and Cheslock, Bakker & Associates LLC, a real estate merchant bank. Senior management
at CBA Commercial have been involved in the business for over 30 years with the development, standardization and
securitization of various types of specialty mortgages and other financial asset classes.
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