Coastal's Government Guaranteed Loan Acquisitions for 2011
Coastal Securities is pleased to announce that the Government Guaranteed Loan Desk
purchased over $1,500,000,000 in government guaranteed loans during 2011.
SBA loan purchases increased for the third straight year and were at the highest
level since 2006 as seen in the chart below:
USDA loan purchases were strong in 2011, despite the expiration of programs relating
to the Federal stimulus package that drove USDA loan purchases to nearly $600
million in 2010.
Looking at the breakdown of USDA loan types purchased in 2011, the majority of loans
purchased continue to be quarterly adjustable. However the fixed proportion
experienced an 8% increase year over year. This growth can be attributed to the
increased amount of fixed rate loan originations in 2011. With the overall rate
environment continuing to be at relatively low levels, borrowers have more demand
for fixed rate loans, and originators view fixed rate lending as less favorable than
adjustable rate, and therefore are more likely to sell these loans into the
This information is for informational purposes only and is not intended as an offer
to sell or a solicitation of an offer to buy any security. It merely provides
information and/or alternatives CS, Inc. believes is appropriate for your consideration.
Although this information has been obtained from sources CS, Inc. believes to be
reliable (some of which are third party services), CS, Inc. does not guarantee that it
is accurate or complete, and it should not be relied upon as such. All assumptions,
opinions and estimates constitute CS, Inc.’s judgment as of this date and, along with
prices and yields, are subject to change without notice. Due to the dynamic nature of
the market, users of this information (especially when related to market indications or
valuations) are cautioned that, while every reasonable effort has been made to provide
accurate information, such accuracy is not guaranteed by CS, Inc. and users should make
whatever additional determinations of market value they deem appropriate. The yield and/or
average life shown on loans, SBA pools, CMOs or mortgage-backed securities consider
prepayment assumptions that may or may not be met. Changes in prepayments may
significantly affect yield and/or average life.
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