[AndyYSCISOdept]

This sort of 4 and 5 deal nonsense is just the "something drastic" that would be needed. That merchant starts bouncing and getting inundated with collection calls. They run to their local Congress person complaining about the predatory nature of these ambiguous funds out there...and the snowball starts rolling

For all the cocky SOB's out there, who think this will never happen...how much money have B of A and Chase and Citigroup paid out in fines over these predatory mortgages? But the customers did in fact sign on the dotted line, right? so what's the harm?

Mat, I couldn't agree more. This is why I am almost welcoming a bit of regulation, this way we can keep out/get rid of the people looking to exploit an industry that for some of us has been a 7 year odyssey from obscurity to real careers.

[Capital Stack]

Well said Andy. Although government involved with business is never good for industry. It would be cool if we can self regulate.

DailyFunder is a Proud Sponsor of the nearly approaching ETA Transact 14. I've been getting emails and updates through the coming event. Whats awesome is CNBC is going to be filming live on the floor.

One of the discussion groups is the ETA spearheading a self regulation effort for merchant processors policy's on operation chock point and what happened to the payday space with ach processing. Members of the Federal Reserve and CFPB will be attending.

This is a great industry blooming, we need to take all efforts to weed out anyone or thing that can damage this space. Lets continue this mainstream growth not many years but potentially generations.

Great weekend

cheers,

[Ryan Shiroky]

Mat, I couldn't agree more. This is why I am almost welcoming a bit of regulation, this way we can keep out/get rid of the people looking to exploit an industry that for some of us has been a 7 year odyssey from obscurity to real careers.

unfortunately, the Gov doesn't do "a bit" of anything... it's all or nothing with the feds... this being said, we can either expect to run free and wild... or, have our hands held by compliance officers through the whole working day... "a bit of regulation" isn't going to happen, and if regulation happens, u can expect a cap on factor rates and minimum terms lengths and commissions and fees... so, brokers are going to get SUPER aggressive because now they have to really fight to make a buck and lenders who charge origination are gonna lose out because brokers won't send biz anymore, cuz they will want to make that junk fee...

regulation is going to suck the lifeblood of this business right out... i say this about stacking, if you dont wanna get regulated, put a cap on it.... come up with some 2nd position funding organization that promotes best practices (like a namaa for 2nds) and set a gross margin rule for all types of stacking deals... REGULATE YOURSELVES!!! pay less commissions to the brokers for doing the deals, that way you can lower rates to begin with (everyone cries about risk, charging 1.45 is risky in itself, nobody wants to pay that rate), and it discourages pushy brokers to coerce merchants...

im probably just pissing in the wind with all this... but the bottom line is, we need to regulate ourselves or the feds are gonna rip our hearts our and eat them...

[Ryan Shiroky]

rip our hearts out*

[AndyYSCISOdept]

Oh, and as far as "Junk Fees" are concerned, they were the orignal scourge of the industry. Not only have I never once charged one, I never will. The money is expensive enough and I'd rather make less now and keep my clients for a long time. By charging a fee a broker is opening themselves up for another rep to swoop in and take their merchant by simply saying, "...oh they charged you a closing cost? I wont ever do that. Come with me and I will get you funded."

***I learned that move from my mentor back in the day, and its served me well.