ATLANTA, Sept. 5, 2019 – LGIS Group (LGIS), the pioneer of Commercial Property Loan Insurance (CPLI) for the commercial real estate (CRE) lending industry, today announced that a leading bank in Alabama will now accept LGIS’s commercial real estate property insurance (CPLI) in lieu of personal guarantees and liquidity requirements for its commercial real estate (CRE) loans. The bank will consider reviewing loans supported with CPLI on commercial projects for loan sizes up to approximately $20 million, covering all basic property types for its customers in the Southeast.
LGIS officially launched its patented CPLI solution earlier this year, giving both CRE lenders and borrowers a viable alternative to the outdated, ineffective personal guarantee and liquidity covenants typically required for CRE loans. Similar in function to private mortgage insurance (PMI) in the residential mortgage lending market, CPLI is institutional grade-rated loan guarantee insurance that offers lenders enhanced risk mitigation, increased capital relief, and positions them to more profitably close more deals by redirecting non-earning assets to support increased CRE lending and other lending initiatives.
“Today’s CRE lenders need effective, modern loan solutions that are attractive to borrowers, mitigate risk and give them the competitive advantage to grow their portfolios,” said David Eichenblatt, President and Founder of LGIS Group. “We are excited to continue adding partners to the growing list of progressive financial institutions that we are helping accelerate CRE lending and boost profitability.”
About LGIS Group
LGIS Group is the pioneer of Commercial Property Loan Insurance (CPLI) for the CRE lending industry. Through its patented, institutional grade-rated loan guarantee insurance, LGIS Group eliminates the need for bankers to secure onerous personal guarantees from valued customers when providing commercial loans to fund their development, redevelopment and value-add projects. As a proven risk transfer and mitigation strategy, LGIS Group provides significant capital relief to bankers, empowering them to increase volume and profitability across their CRE portfolios while increasing the customer relationship and deposits. LGIS Group also provides benefits for borrowers by transferring risk, lowering costs and expanding their overall capacity for deals, as well as intermediaries (i.e. mortgage brokers, insurance brokers) by offering an impressive new market and revenue source for servicing customers from a project’s inception to take out. www.lgisgroup.com.