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LGIS Group Introduces Commercial Real Estate Finance Industry’s First Commercial Property Loan Insurance (CPLI) Service

ATLANTA–(BUSINESS WIRE)–LGIS Group (LGIS) announced today the first ever official availability
of commercial property loan insurance (CPLI) to the commercial real
estate (CRE) finance industry. Representing an entirely new product
category within CRE, LGIS’ patented product is the first of its kind
available to borrowers and developers and their financial institutions,
signaling a vastly improved structural change in how CRE lending is
managed for all parties.

Similar in concept to private mortgage insurance (PMI) in residential
mortgage lending, commercial property loan insurance is institutional
grade-rated loan guarantee insurance that serves as an effective risk
transfer and mitigation strategy, providing immediate, significant,
stronger credit and capital relief to bankers, empowering them to
increase volume and profitability across their CRE portfolios and
enhance customer relationships and deposits. Removing the need for a
personal guarantee also benefits the borrower, improving borrowing terms
and increasing their capacity for more possible deals.

“For years, the commercial real estate market has been hindered by the
shortcomings of traditional, outdated loan methods,” said Edgar Ortiz,
President, Strategic Analytic Solutions. “There has long been a need for
a mechanism that could at once open it up, benefiting both lenders and
borrowers all while minimizing risk, and LGIS Group’s CPLI is the
answer. CPLI is a truly unique and innovative approach for the industry,
providing direct, cost-effective capital relief that reduces risk and
provides an injection of fresh capital into banks’ balance sheets.”

Traditionally, bankers have relied on an onerous, operationally
inefficient and falsely reliant process to base lending of CRE projects
primarily on the personal balance sheets of developers and guarantors
and only secondarily looking at the feasibility of the project itself.
By adopting CPLI over the inefficient and uncertain personal guarantee
process, financial institutions are positioned to reduce their required
capital reserves, driving profitability by redirecting non-earning
assets to support increased CRE and other lending. Additionally,
institutions gain significant operational savings over time by reducing
(or eliminating entirely) the need for quarterly re-evaluations and
confirmation of collateral value and liquidity on their CRE customers.
Relationships and deposits are also positively enhanced for a
competitive advantage.

“As short term CRE projects continue to grow, financial institutions
find themselves facing increased levels of competition from non-bank
market entrants that are aggressively targeting borrowers and developers
in an effort to gain market share,” said David Eichenblatt, president of
LGIS Group. “To counter this, our team has leveraged decades of CRE
industry experience in developing a viable commercial property loan
insurance product and bringing it to market – one that provides a
compliant way for bankers to significantly increase their loan credit
strength, customer relationships and deposits and reduce their capital
reserves and grow their CRE lending business.”

To learn more about LGIS and the CPLI program, visit www.lgisgroup.com.

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.

Contacts

Derek Howard
William Mills Agency, for LGIS Group
678-781-7215
[email protected]

J. Blair Logan
William Mills Agency, for LGIS Group
678-781-7218
[email protected]

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