[pmoney]

Introducing WBL's newest offering: DIAMOND PRICING

Just released, effective immediately, take a look...


Minimum Amount: $200,000
Minimum Term: 12 months
Maximum Term: 36 months
Minimum FICO: 700
Years in Business: 2+
__________________________________________________ ____________
*12 month buy rate = 1.21 (add 2 points for each additional month)
*No open advances allowed
*No NSF's allowed
*Collateral: Residential and Commercial ONLY (must be Free & Clear)
*Maximum 4 point mark up


If you have a loan scenario which meets the above parameters definitely get in touch!


Just to confirm, Diamond Pricing is a new tier in addition to our current Gold, Silver, and Bronze pricing. Scenarios which don't fit the above would most likely be a better fit under one of our other pricing tiers.

[admin]

moved to promotions

[FUNd]

700 FICO, 1st position on real estate, 1.21 buy is DIAMOND pricing? You guys are hilarious.

[pmoney]

700 FICO, 1st position on real estate, 1.21 buy is DIAMOND pricing? You guys are hilarious.

It's going to be a great option for well-qualified borrowers.

[FUNd]

In what scenario would a borrower with this credit and asset profile not get a 30 year fixed mortgage or HELOC?

[pmoney]

In what scenario would a borrower with this credit and asset profile not get a 30 year fixed mortgage or HELOC?

1) Borrower does not have 30 - 60 days to obtain traditional financing and needs to fund quickly. Residential typically takes 30 - 60 days to fund, while commercial can take even longer.

2) Borrower can't meet a lenders income requirements. Since these are business owners 99% of loan programs out there (Conventional, Government, Portfolio) will require tax returns, personal & business, to ensure they can support the payment and cap it between 43% - 50% DTI (debt-to-income). Many of those who are self-employed take full advantage of deductions / write-offs which is a common practice. This is problematic because underwriters at lenders go off of net income, not gross.

3) Borrower does not own an investment property. There are a few stated-income / reduced-documentation / bank statement mortgage programs available which bypasses the tax return issue, however, they're strictly geared towards investment properties and not primary residences due to regulations.

4) A home equity line of credit (HELOC) is not enough funding. Most home equity lines of credit are capped between $250,000 - $350,000 depending on the state of the property. If the borrower has the equity position and the revenues to support it we can make a loan greater than a HELOC can. We also offer an interest-only program.

5) We lend nationwide. There are some VERY difficult states to get commercial loans in, North Dakota & South Dakota, for example. Even if you find a lender who offers a niche program it doesn't mean it's available in all 50 states.


6) A combination of all of the above.

[FUNd]

Well thought out. Conventional refis do not take 30 much less 60 days to fund. Traditional rate locks are 15 days and in some circumstances, 30, but average funding from soup to nuts isn't more than a couple of weeks. If the appraisal had been done already, even shorter.

Self employed individuals are not that difficult to get done these days on mortgage products. People increasingly are getting paid on a 1099 basis, which makes them self-employed, and there are hundreds of loan programs geared toward these individuals. Further, DTI is much less of an issue when your payment is small, as it would be on a 200K 30y fixed at 5-6% apr.

You can't compare your product to a HELOC. There are zero similarities. Is a savvy good credit borrower going to trade a low, simple interest, monthly, long term loan for a daily payment at 27 cents on the dollar for a few extra K? Doubtful.

Never heard that's it's hard to get a loan in ND or SD. Why would that be? If it was for any reason except that it's rural in many parts, it would be considered redlining and would be illegal.

I dunno but, not seeing the light here..

[tamerica]

Collateralized at 1.08 to 1.13 buy would be more realistic. Filing this promo in my looney bin.

[Michael I]

Forget about traditional loans . Why would any ISO use you in that situation over let say on deck ?
The whole value I was ever able to find with you guys is for the guy with multiple positions or nsf.
Why should someone put up colletaral, pay all the. Extra fees you charge . Wait the minimum 2 weeks plus you guys take for that rate

[Jared_Weitz]

I've tried a few times now and to be honest, this is not something the ISO community should push. Everyone on this forum knows you can get these rates and better without putting up your home. Also, just because a merchant could possibly qualify for 2-3 times more doesn't really help them unless they can increase their revenues and profits 2-3 fold and then some to justify payments. Then on the I/O product you're further screwing the merchant into a balloon.

Similar to what FunD and Michael I are saying, I would rather go ODC, MCC, Rapid, Kalamata and/or conventional mortgage or SBA 7a loan before I ever did this.

[AndyYSCISOdept]

^^^Well said Jared. I have also found the idea of putting up your home with regards to a cash advance to be something that should be a last resort for a merchant. But as others have stated there are a lot of options out there without using home(s) as collateral that can work for the merchant financial needs

[Michael I]

I've tried a few times now and to be honest, this is not something the ISO community should push. Everyone on this forum knows you can get these rates and better without putting up your home. Also, just because a merchant could possibly qualify for 2-3 times more doesn't really help them unless they can increase their revenues and profits 2-3 fold and then some to justify payments. Then on the I/O product you're further screwing the merchant into a balloon.

Similar to what FunD and Michael I are saying, I would rather go ODC, MCC, Rapid, Kalamata and/or conventional mortgage or SBA 7a loan before I ever did this.

well said

[pmoney]

Well thought out. Conventional refis do not take 30 much less 60 days to fund. Traditional rate locks are 15 days and in some circumstances, 30, but average funding from soup to nuts isn't more than a couple of weeks. If the appraisal had been done already, even shorter.

Soup to nuts is from the time an application is taken to the time it funds so yes it does take that long in most instances with the exception being an FHA Streamline or VA IRRRL. Being that residential is now in the TRID era the closing process has been extended a few days since the CD must be issued. Just because a rate lock is 15 days doesn't mean the process takes 15 days. Many times the rate is floated until the file enters underwriting, then the rate lock is executed since it's always better pricing. Either that or the rate is initially locked then extended; I've done both approaches, depends on the scenario and market conditions. The appraisal is part of the process and is not ordered prior to application. That alone typically takes a week between scheduling the inspection, visiting the site, and completing the actual report. On commercial loans I've seen title issues or CO issues create extreme delays, stretching closing out in the 6 - 9 month range.

Self employed individuals are not that difficult to get done these days on mortgage products. People increasingly are getting paid on a 1099 basis, which makes them self-employed, and there are hundreds of loan programs geared toward these individuals. Further, DTI is much less of an issue when your payment is small, as it would be on a 200K 30y fixed at 5-6% apr.

Coming from someone who worked almost exclusively with self-employed borrowers in the mortgage industry I can most certainly say that self-employed borrowers have far greater obstacles to overcome regarding income calculations, qualifying, and underwriting. There are many business owners I've worked with who receive 1099 income but also receive a lot of cash payments which often isn't truly reflected on the returns. Sure they could amend their tax returns but then they will have to pay additional tax and most likely a penalty.

You can't compare your product to a HELOC. There are zero similarities. Is a savvy good credit borrower going to trade a low, simple interest, monthly, long term loan for a daily payment at 27 cents on the dollar for a few extra K? Doubtful.

I completely agree, a mortgage or any type of traditional long-term financing should not be compared to a product which is considered short-term alternative financing. You specifically asked why someone with those credentials would not simply obtain a mortgage and I provided some solid reasons which may be underlying issues preventing them from doing so. Odds are if I'm speaking with a borrower that fits this program they've already exhausted all long-term options and there's something preventing them from obtaining the funds.

Never heard that's it's hard to get a loan in ND or SD. Why would that be? If it was for any reason except that it's rural in many parts, it would be considered redlining and would be illegal.

Keep in mind that I'm specifically referring to commercial loans. Bottom line is many commercial lenders, for one reason or another, do not offer loans in these states which makes qualifying unique scenarios somewhat difficult due to less options.

I dunno but, not seeing the light here..

In the most simple terms it's because 95% of borrowers with strong credentials will not have a need for short-term financing with high interest. But for those 5% who are having extreme difficulty obtaining traditional financing we provide an alternative solution and even then it may not be the best option for them.

[pmoney]

Forget about traditional loans . Why would any ISO use you in that situation over let say on deck ?
The whole value I was ever able to find with you guys is for the guy with multiple positions or nsf.
Why should someone put up colletaral, pay all the. Extra fees you charge . Wait the minimum 2 weeks plus you guys take for that rate

Odds are we'd be able to fund a larger amount than OnDeck. We can still fund those scenarios with multiple positions and NSF's, they're just not going to get the pricing offered under Diamond. For non-Diamond scenario's most of the time borrowers are looking for enough funds to consolidate their open advances (not allowed under Diamond pricing). I'm working on one now where they have 4 advances and paying upwards of $4,800 a day; we'll be able to bring that down to roughly $1,600/day. Think about that for minute. Yes they're pledging real estate but they'd be improving their cash-flow by about $60,000/month. Regarding the length of time to fund, the 2 weeks is mainly due to getting the valuation reports and title searches.

I've tried a few times now and to be honest, this is not something the ISO community should push. Everyone on this forum knows you can get these rates and better without putting up your home. Also, just because a merchant could possibly qualify for 2-3 times more doesn't really help them unless they can increase their revenues and profits 2-3 fold and then some to justify payments. Then on the I/O product you're further screwing the merchant into a balloon.

Again, it's not meant to be your first option. Obviously if you're working with a client and can get them the amount of funding they need/want, in less time, and at a better rate you're going to do it. On the flip side if you can't get them the amount they need and there's no wiggle room then we become a viable option. It always amazes me when people hear "balloon" and automatically translate that to be negative. While our interest-only product does keep payments lower, it is not right for most unless they have an exit strategy. A few examples would be obtaining long-term financing, selling a property, receiving a large settlement, etc. ..we're simply bridging the gap

I have also found the idea of putting up your home with regards to a cash advance to be something that should be a last resort for a merchant. But as others have stated there are a lot of options out there without using home(s) as collateral that can work for the merchant financial needs

I agree, if you can get the deal done for what the amount the merchant needs without using collateral then it's by far the best option.

[Michael I]

well i guess thats why its min . 200k because anything less it makes no sense to deal with it .
a

[brokerCompany]

you understand this type of program with collateral the lenders are just in it to pick up real estate across the country.
Love to see their performance on deals after 2 years. It wont matter with high default they will have millions in real estate

[FUNd]

^^ ding ding! Exceed established DTI and credit requirements in place on traditional mortgages by disguising the loan as a commercial cash advance, knowingly back people into loans that are too expensive for them and foreclose on property to acquire it at pennies on the dollar. Genius!