[Karen37a]

( and Now you have Real A paper competition)

https://www.wsj.com/articles/emergen...you-1522402200


The announcement, expected within the next two months, will focus on 45-to-90-day loans, rather than payday loans, which typically are repaid in a lump sum in a few weeks or by the borrower’s next paycheck.


__

Under Trump, financial regulators have sharply reversed course on short-term lending.

The Consumer Financial Protection Bureau is re-evaluating a 2017 rule that would impose ability-to-repay standards on payday loans, including those made by banks.

And the OCC has dropped its guidance restricting deposit-advance loans and recently opened the door for national payday-loan chain ACE Cash Express Inc. to team up with banks, ending a prohibition that lasted more than a decade.

[Karen37a]

When this happens...90% chance that it will

passive referrals...inbound will take a SERIOUS Hit...worse than now.

And bank money generates a 1% commission

Here is where the rubber is going to meet the road. Just like the Mortgage brokers who created outside independent organizations and learned how to market thru face to face or phone/ personal referals battled the inside "Morgage banker" for the same sales.(And the outside brokers won 70% of the time)

This will be similar.

Funders who were broker /iso Friendly are going to be in a great position to have these brokers /isos stay loyal to them.

The ones who cut Isos off...the sales force...they are in serious trouble.

Back office vs sales force now against the banks..Outside independent Mortgage brokers/Loan originators( or Ex) and teams of them are use to it.


Thank God we didnt get regulated and then had to battle the big money...we would have toppled...no wonder why people were fighting so hard against it now and being harrassed /stalked thru it all.


And there is a reason certain seasond sales people reversed course and went to( only some A paper) B C D paper ...and it wasnt because of a dui

[MCA]

Sorry, isn't the above press release for consumer lending? How would this affect MCA funders?

[ADiamond]

thank god for high risk stacked paper or us little guys wouldnt make a penny :X ;X

edit - no seriously though you think banks are going to fund deals that reps are already getting turned down for at "A" lenders ?

better start making relationships with banks to get their scraps

[WestCoastFunding]

Karen, knock it off.

[Karen37a]

thank god for high risk stacked paper or us little guys wouldnt make a penny :X ;X

edit - no seriously though you think banks are going to fund deals that reps are already getting turned down for at "A" lenders ?

better start making relationships with banks to get their scraps

I agree.

High risk will still be great...but the banks have more power/ marketing/ money and some of the A plus and A paper is going to make it to the bank BEFORE they make it to some A paper mca funders

Just more competiton coming for American business...

And some isos/funders are going to head them off at the pass ..if we can, thru marketing face to face and phone calls.

** some of us are not going to flinch because that was our marketing plan all along. And alot of Funders were iso/broker friendly. We shall see how it all pans out. I have no clue as to what their qualification guidlines and alogorithm may be. maybe like pay pal? maybe something else who knows.

[WestCoastFunding]

Karen, this relates to CONSUMER loans — not commercial. This will have absolutely no bearing on MCAs.

[J.Celifarco]

^^^^^^^ Bingo we have a winner ^^^^^^^
Also even if they do open up business lending the % of our customers that will qualify and or have the time to wait for an approval will be very small and have little to no affect on us

[Karen37a]

Consumers...who own businesses will have access to these.

A business cash advance ..is still partially based on personal credit

I won't get into details on this board...and once one door opens the next door will open. They have things in the works.

I am off to fund deals...see you soon

I am not going to go thru a whole can capital cant go under debate or the dooddy frankenstien act is great for everyone ...and fiduciary is great for brokers...think what you will

[WestCoastFunding]

Stop it, Karen.

[MCNetwork]

Consumers...who own businesses will have access to these.

I have to agree with her on this. I lost a few MCA deals because the merchants were approved for personal loans with great rates.

[nrh1lp]

Yea, but what happens if the merchant goes out of business 4 months later? That person will still need to make payments on the personal loan, but not an advance.

Business and Personal have very different UW guidelines and it is a logical fallacy to assume the two can be treated as equals.

[J.Celifarco]

I have to agree with her on this. I lost a few MCA deals because the merchants were approved for personal loans with great rates.

will it occasionally cause us issues yes but is it something that I am going to lose sleep over, I dont think so

[Karen37a]

Yea, but what happens if the merchant goes out of business 4 months later? That person will still need to make payments on the personal loan, but not an advance.

Business and Personal have very different UW guidelines and it is a logical fallacy to assume the two can be treated as equals.

I know from experience watching this over decades that once someones business goes under...they 80% of the time take ALL the loans /advances /credit cards with them so this is a moot point.

You life is usually in shambles if your business goes under.

[Karen37a]

All this doesn't matter because the top salesmen are going to have plans in place to pull in deals.

Goldman is stepping up to the plate as well and Investors are going to be flocking back in to participate...they usually wait until they see profits and miss the exact bottom and catch things on an upswing.

Im going to chug along in my B plus C-D paper plan