[WhoisKingsley]

There are different perceptions of this industry from a Broker standpoint as well as your direct lender/funder - whether it's "A" paper or high risk, stacking, etc.

This is all going back to the subprime mortgage crisis. You can compare our high risk product to an adjustable rate mortgage. You had a product that lowered it's lending standards to be accessible to consumers. There were multiple options when it came to paying back- but overall introductory prices and the ease of getting it was the main "selling" point. Rates were based on the market and the base rate depended on the cost of the lenders capital. The Mortgage Broker is the icing on the cake and ladder originator in the market and even though they have nothing to do with the fact that the consumer is responsible for their decision (research and agreeing to the terms)- they were puppets of the industry to flood the market with the overall understanding of "how easy" it was to own your own home and afford it "now". The predatory practices are obvious there.

Fast forward a few years later but take the consumer and match them to a business owner. You have "A" paper lender/funders (banks or non-banking institutions) and the "Subprime" Paper going down the same road. You have Merchants taking out advances/loan products that are not broken down/explained correctly for what they are. Our industry is not advancing logically. We went from taking a % of credit card receivables, to saying sh*t- they don't take credit cards so an ACH payment product was created, to now figuring out how to appease investors and at the same time adhere to Main Street's needs of transparency and better qualifying of the many products that are "invented" by those who are trying to put a number on future receivables (key word:Future) and offered by those who don't understand the ins and outs of finance and/or business or overall how to qualify.

This isn't all about stacking- there are a lot of factors that play into the different coalitions getting together with gov. and regulators to put the pieces together to omit another crisis. You can't really point a finger. You can be an example of positive future changes but enable at the same time

[WhoisKingsley]

There are different perceptions of this industry from a Broker standpoint as well as your direct lender/funder - whether it's "A" paper or high risk, stacking, etc.

This is all going back to the subprime mortgage crisis. You can compare our high risk product to an adjustable rate mortgage. You had a product that lowered it's lending standards to be accessible to consumers. There were multiple options when it came to paying back- but overall introductory prices and the ease of getting it was the main "selling" point. Rates were based on the market and the base rate depended on the cost of the lenders capital. The Mortgage Broker is the icing on the cake and ladder originator in the market and even though they have nothing to do with the fact that the consumer is responsible for their decision (research and agreeing to the terms)- they were puppets of the industry to flood the market with the overall understanding of "how easy" it was to own your own home and afford it "now". The predatory practices are obvious there.

Fast forward a few years later but take the consumer and match them to a business owner. You have "A" paper lender/funders (banks or non-banking institutions) and the "Subprime" Paper going down the same road. You have Merchants taking out advances/loan products that are not broken down/explained correctly for what they are. Our industry is not advancing logically. We went from taking a % of credit card receivables, to saying sh*t- they don't take credit cards so an ACH payment product was created, to now figuring out how to appease investors and at the same time adhere to Main Street's needs of transparency and better qualifying of the many products that are "invented" by those who are trying to put a number on future receivables (key word:Future) and offered by those who don't understand the ins and outs of finance and/or business or overall how to qualify.

This isn't all about stacking- there are a lot of factors that play into the different coalitions getting together with gov. and regulators to put the pieces together to omit another crisis. You can't really point a finger. You can be an example of positive future changes but enable at the same time

BTW- adjustable rate mortgages were regulated and the crisis still happened... then the bail out...etc. BUT then this happened a few years later .... http://www.philadelphiaherald.com/in.../sid/224972439

What will happen to us?