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OLA Insurance Expanded to $750,000 FAME Exposure
Beginning April 1, 2017, FAME lender partners can opt for up to $750,000 in loan insurance through OnLine Answer (OLA). This is the fourth and largest loan insurance enhancement FAME has launched in the last six months in response to it's Voice of the Customer research.
The maximum FAME OLA exposure will be
doubled from $375,000 to $750,000.
Lenders can process applications for loan insurance on OLA, FAME's secure web application, and receive a decision in seconds. This expansion allows lenders to use the OLA system instead of applying for larger loan insurance through the traditional paper application.
Commercial Loan Insurance (CLI) maximums are now available for:
- Pro-rata Term and Line of Credit Loans
- 75% maximum CLI up to $500,000 FAME exposure.
- 60% maximum CLI for FAME exposure between $500,001 and $750,000.*
- 60% maximum CLI for start-ups (businesses open less than one year) up to $500,000 FAME exposure.
- Use of projections on cash flow analysis limits availability to $500,000 FAME exposure.
*Note: If a second loan insurance request is submitted within 90 days of a prior application which would result in aggregate FAME loan insurance exposure over $500,000, then the application will be pended and a FAME loan officer will reach out to the lender. The lender can chose from two options if this occurs: 1) Both loans could be insured for up to 60% FAME exposure; or 2) The first loan could remain at 75% FAME exposure and the second loan would have a blended rate so that FAME's overall exposure does not exceed a combined exposure of 60%.
- Pro-rata refinance of existing debt up to 40% CLI up to $500,000 FAME exposure. Leveraged insurance is not available for refinancing existing debt.
- Leveraged term loans up to 25% CLI up to $250,000 FAME exposure.
- Leveraged lines of credit up to 20% CLI up to $250,000 FAME exposure.
FAME's aggregate exposure per related entity (borrower/guarantor) in OLA is capped at $750,000.
This can be a combination of pro-rata and leveraged insurance with a $250,000 limit on leveraged insurance.
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