On Monday, Newtek announced it has has agreed to sub-service a $56.4 million portfolio of SBA 7(a) loans for Valley National Bank. The servicing is expected to transfer during the third quarter of 2013.
Newtek originates all of its SBA 7(a) loan business through its licensed non-bank lender, Newtek Small Business Finance, Inc. Valley National Bank, with 210 branches and $16 billion in total assets, chose to contract its loan servicing to Newtek Small Business Finance based on Newtek’s qualifications and industry expertise.
Barry Sloane, Chairman, President and Chief Executive Officer of Newtek Business Services said, “We are thrilled about the opportunity to work with this major banking presence in New York and New Jersey, and service a high-quality portfolio of loans. The addition of this $56 million loan portfolio fits well with our current loan servicing portfolio and supports its overall growth. We fully intend to continue to grow our loan servicing portfolio both organically and through subservicing and acquisition opportunities. Loan servicing revenue creates an important recurring income stream for our organization. As such, we expect to increase our total loan servicing portfolio by a minimum of 32.4% over 2012 to at least $700 million by the end of 2013.”