Looking Back, April

NAGGL Eases Early Secondary Market Challenges
One of the issues that led to the formation of NAGGL was a secondary market issue. In the early 1980's, use of a fiscal and transfer agent (FTA) was optional, and only about 10% of the loans sold in the secondary market flowed through Bradford Trust, then the FTA. The SBA announced a plan to require all secondary market loans to be processed through Bradford Trust. Since Bradford Trust's performance had been less than stellar, NAGGL leadership questioned how Bradford could effectively handle a 1000% increase in volume.

Shortly after the new requirement was implemented, Bradford was succeeded by Colson Services, and the rest, as they say, is history. Colson has been one of the main reasons for the success and stability of the SBA 7(a) loan secondary market.