August 05, 1999 11:36
FINOVA Chooses CyberLoan
DENVER--(BUSINESS WIRE)--Aug. 5, 1999--
FINOVA Realty Capital now accepts on-line commercial real estate loan applications through the CyberLoan system found at FinancingSources.Com
FinancingSources.Com (formerly DataMerge, Inc.), a Denver-based developer of on-line loan submission systems for the commercial real estate industry, today announced that Phoenix-based FINOVA Realty Capital, a division of The FINOVA Group, Inc. (NYSE:FNV), is now participating in its on-line commercial real estate loan submission network, CyberLoan(TM).
The CyberLoan system is often described as the commercial counterpart to E-Loan, Inc. (NASDAQ:EELN). In other words, FinancingSources.Com/CyberLoan is to commercial mortgages what E-Loan is to residential mortgages.
Like E-Loan, CyberLoan matches incoming loan applications with the underwriting criteria of multiple lenders, then transmits the application to those lenders most likely to finance the property. CyberLoan, however, differs from E-Loan in several respects:
o CyberLoan specializes in processing commercial real estate loans. E-Loan processes residential loans.
o CyberLoan is larger than E-Loan in terms of loan application volume and the number of participating lenders. Over 500 lenders receive loan applications through CyberLoan, compared to 70 or 80 for E-Loan. CyberLoan loan application volume averages $300 million per month, and is growing monthly by 25 percent. E-Loan volume is significantly lower.
o FinancingSources.Com is a neutral third-party within the system, not funding loans itself as E-Loan does, but referring them directly to the participating lending institutions.
Recent events, such as the stellar performance of E-Loan stock following its initial public offering, the announcement by Comps.Com (NASDAQ:CDOT) that it will enter this market by year end, and announcements by FinancingSources.Com that major lending institutions now use CyberLoan, have focused national attention and investor interest in the company.
"Response by the investment community has been tremendous," said Spencer Kluesner, chief executive officer at FinancingSources.Com. "We are currently entertaining two offers to acquire us at very tempting multiples, in addition to offers to provide private equity in the $20 million range, to be followed by an initial public offering. We
anticipate a decision within the next 30 days."
The CyberLoan system went live February 1 and currently processes over $300 million in commercial real estate loan applications each month. CyberLoan is used by more than 500 lending institutions, including GE Capital Real Estate (NYSE:GE), Bank of America (NYSE:BAC), Heller Financial, Inc. (NYSE:HF), Bank One Corp. (NYSE:ONE), Lehman Brothers Holdings, Inc (NYSE:LEH), Merrill Lynch Capital Markets (NYSE:MER), and Transamerica Corp. (NYSE:TA).
Formed in 1989, privately held FinancingSources.Com is led by Spencer Kluesner, a former securities and mergers & acquisitions advisor who today serves as chief executive officer of the 26-person company. The
company's products and services are used by customers in North America, Western Europe and Asia. FinancingSources.Com is currently in negotiations for a second round of private equity and an initial public offering. For additional information, visit the company's website at www.financingsources.com or call (800) 580-1188.
CONTACT: Masi PR
Peter Masi
303/399-6031
masipr@earthlink.net
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