This Schedule is designed to help you determine the Loan Rate and Advance Rate relating to any note you wish to borrow against. Each loan in the Collateral Pool is assigned a rating from AAA to BB. (See below to see how the Note Rating is calculated.) The matrix below will then show you the advance rate and the interest rate for which that note qualifies. The overall Advance Rate and Loan Rate for the Line are then the weighted averages of all the loans in the Collateral Base at the end of each business day. |
Advance Rates are designed to attempt to give the Land Dealer (1) enough cash to recoup the purchase price of the land and (2) enough cash to make necessary improvements to the land prior to selling. The amount we are willing to advance on the notes may not always cover such amounts for every deal considered singly, but on average it should work for almost any properly structured project. Property types that qualify for the Collateral Pool are divided into four categories. |
Property Type Categories*
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1 |
2 |
3 |
4 |
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Land only note with SFOO, stick built, modular, single or double wide manufactured home on top (home must be third party financed) | Land and SFOO home note, SFOO home must be a stick built, modular, or manufactured home. | Vacant land improved with Electric, Water, Septic/Sewer, Telephone | Vacant land with no improvements | |
Note Rating |
Maximum Loan Advance as a % of Balance Due on Note |
Loan Rate |
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AAA |
70% | 65% | 60% | 50% | 11.50% |
AA |
70% | 65% | 60% | 50% | 12.75% |
A |
70% | 65% | 55% | 50% | 13.50% |
AB |
65% | 60% | 50% | 45% | 14.25% |
BB |
65% | 60% | 50% | 45% | 14.50% |
*All property classifications are subject to the sole discretion of Lender. Properties in blighted or high crime areas may not qualify for funding or may qualify for Broker Line at higher Loan Rates and/or lower Advance Rates than those shown in this Broker Funding Schedule. In most cases where the appraised value is less than the "equivalent balance" (defined on the following page), the Advance Rate would be a percentage of the appraised value. Any property type that does not fall into the above categories could still be added to the collateral base on a case-by-case basis by calling FNAC-NA and getting a proposed Loan Rate and Advance Rate for that particular property.
** SFOO stands for Single Family Owner Occupied property.
***Second liens must be approved on a case-by-case basis. The Loan Rate on second liens is 1.5 percentage points higher than for first liens.
| The Note Rating of each Note is determined with reference to the factors below which score the equity (chart 1), credit rating (chart 2), seasoning (chart 3), and the payment record (chart 4) of each Note on a scale from 0-5 (with 0 being the best score and 5 being the worst). These scores are then weighted to arrive at a final Note Rating (chart 5). | For instance, a note with 16% equity, a credit report on the payor of 610, 5 months of seasoning, and an excellent payment record on the note would get a 2.4 weighted score or AA rating (3*30% + 2*40% + 3*20% + 1*10% = 2.4). If this note were secured by land with a third party financed SFOO single wide manufactured home (Property Type 1 above), it would qualify for an Advance Rate of 70% of that Note's balance due and a Loan Rate of 12.75%. |
| 1. Equity Factor (30%) | 2. Credit Rating Factor (40%) | ||||||||||||||||||||||||||||||||||||||||||||||
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| 3. Seasoning Factor (20%) | 4. Payment Record Factor (10%) | ||||||||||||||||||||||||||||||||||||||||||||||
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5. Final Note Rating |
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Final Note Ratings are dynamic and can change on a daily basis with increased seasoning, increased equity, increased (or decreased) number of days past due, etc. The Credit Rating Factor, however, is determined at the time of purchase and is not re-run at any point during the loan, except at Borrower's expense with a written request.
*Emperica® is a credit system developed by Trans Union.®
Advantages How it Works Definitions and Terms Guarantee LandLine Schedule
