Falcon Financial CEO Vernon Schwartz says he expects his company's second securitization to take place near the end of the second quarter of 2000. The company's first was the first bond issue ever to consist entirely of auto dealership franchise loans.

Falcon Financial loans money to dealers to expand and improve their operations. The loans are based on estimated franchise value without personal recourse.

Included in the Falcon Financial's next securitization will be the $4 million the company loaned to dealer William Rosado of Milford, PA to make acquisitions and improve his Milford Chrysler Sales and Lehighton Chrysler Plymouth stores.

Also included will be the $2.4 million Falcon loaned to Frontier Motors General Manager Lindon Higbee to become the sole owner of the Island City, OR dealership.

The lender also made $7.75 million available to Robert Garf of West Valley Dodge to purchase controlling interest in the Rick Warner Automotive Group.

"The last six months, we've doubled what we did in the first six months," says Mr. Schwartz. "With AutoNation backing off (in acquiring dealerships), dealership prices are stabilizing and allowing the traditional buyers more opportunity. That's our bread and butter."