OnLine Answer Insurance Expanded to $750,000 FAME Exposure
The Finance Authority of Maine (FAME) is pleased to announce that, beginning April 1, 2017, FAME lender partners can opt for up to $750,000 in loan insurance through OnLine Answer (OLA).
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 exposure loans through FAME’s traditional paper application. This is the fourth and largest loan insurance enhancement FAME has launched in the past six months in response to extensive customer feedback actively sought by the agency.
The maximum FAME OLA exposure per borrower is now doubled from $375,000 to $750,000. Commercial Loan Insurance (CLI) maximums are now available for:
- Pro-rata term loans and lines of credit:
- 75% maximum CLI up to $500,000 FAME exposure
- 60% maximum CLI on FAME exposure between $500,001 and $750,000
- 60% maximum CLI on start-ups (businesses open less than one year) up to $500,000 FAME exposure
- 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 borrower in OLA is capped at $750,000)
Last fall, FAME launched three new enhancements to FAME’s loan insurance programs that help lenders obtain loan insurance decisions faster, more easily and at a lower cost. These enhancements are:
- 3 and 5-year fee options for term loan insurance;
- 3-year fee option for line of credit loan insurance; and
- Leveraged insurance in the OnLine Answer (OLA) application process.
Learn more about FAME’s OLA from this detailed explanation of the program.