With PLM's no front-end fee
income fund, 100% of investors'
Gross proceeds to partnership 100% Less: Selling commissions 8% Estimated organization and selling expenses 4% Acquisition fees 1% Total front-end fees
13% Amount available for investment and working capital 87%
Peck says industries have responded somewhat cautiously - they are looking for assurances that the front-end fees
will be equitable.
In many cases these loans were made with an eye principally focused on front-end fees
, and without any reasonable assurance of repayment.
6% (a) Excluding management and front-end fees
collected by AXA Investment Managers on behalf of external distributors, gross revenues increased 21% on a comparable basis.
No longer did a lender need to carry a loan on its own books, but could securitize it and capture fat front-end fees
and not have to worry if the borrower paid.
AXA Investment Managers (AXA IM): Revenues(5) increased slightly, on a comparable basis, but increased by 4% excluding management and front-end fees
collected by AXA IM on behalf of external distributors.
However, certain issues have persisted: TIC offerings have not always been available during the investor's short 45 day ID period, the debt required to be assumed usually does not match an investor's debt requirement, the economics of the transactions are complex and often include large, front-end fees
for the sponsors and, there is no easy exit from this illiquid investment.
Average front-end fees
earned on retail loans sold during the 1999 were 4.
60 percent over LIBOR and involved no front-end fees
, will be used to pay off an existing $20 million credit line Bay has with Wells Fargo Bank and to reduce outstanding balances on an $80 million credit line with General Electric Capital Corporation (GECC).
While expanded access to credit from both prime and subprime lenders has contributed to the highest homeownership rates in the nation's history, there is growing evidence that some lenders are engaging in predatory lending practices -- excessive front-end fees
, single premium credit life insurance, and exorbitant prepayment penalties -- that make homeownership much more costly for families that can least afford it.
iv) recognition of expense in connection with front-end fees
and warrants (priced at $12.