[Regium]

If they do, not an A-paper funder

[anonymous]

If they do, not an A-paper funder

If you say so.

[CreditGuy]

If you say so.

I'm an A paper funder, and I say so.

One way I could think you arrived at this conclusion is it is a funder that has a program that only requires banks (no processing statements), and you know about the split and don't disclose it to them, and there is also no UCC filing from the split lender so it slips by their UW. If that's the case, that's you being dishonest and not the lender not considering it a position.

The other option is that they truly don't care, in which case they are stupid because while the cash flows reflected on the banks are net of the repayment on the split product, there is already a sizable chunk of revenues coming off the top given the split lender UW a first position deal, so likely 15-20% assuming a term under 12 months. As such, taking another position would further eat into cash flows, which are already discounted due to the split, so in terms of total repayment the borrower is looking at 30-40% of gross revenues, which is suicidal. If you sell them on the second, you aren't working with the borrower's best interest in mind and the lender is equally greedy and/or culpable.

Selling seconds, selling thirds that are really seconds based on ignorance/loopholes, calling lenders that do seconds "A-paper"...are you frittata or just greedy?