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FNBA (FNBA) began instituting many pioneering innovations that are now part of the industry as a whole. In fact, Metropolitan has publicly acknowledged that FNBA was doing partials before Metro introduced them to the consultant community. FNBA was also the first to do a rated securitization, a REMIC, by a major Wall Street firm. Metro subsequently did this as well. FNBA also started offering a new service to fellow consultants and investors that changed many consultants’ futures for the better.
FNBA granted lines of credit to Cash Flow Consultants based solely on the strength of the asset behind the note. As opposed to banks, which lend on the basis of the credit worthiness of the borrower and the net worth of their existing assets, FNBA considered only the asset, the real estate, on which the purchased note is held. This enabled Consultants who could not get the funding they needed from a bank, to obtain funding for note purchase investments.
Historically, FNBA gave a valuable advantage to consultants who planned to become investors — a practice that gave others the chance to excel and extend their realm of influence. Their common sense approach to providing credit lines eradicated the barriers imposed by traditional financial institutions and likely inspired other industry investors.
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