[BoostAaron]

I posted this as a comment in a thread. I'm interested to see what everyone else has to say. If any veterans would like to contribute some inside knowledge, I'm all ears. Do you think we can successfully self-regulate before they come banging down our doors? Chime in!

"We'll see what happens with regard to industry regulation. If we're "lucky", we'll get a Trump presidency, and we'll have at least another 4 years to self-regulate. I'm pretty embattled right now, looking at what I feel to be two very, very bad choices for our next Commander-in-Chief, both for very different reasons. But I can at least appreciate what Trump would do for our industry, which is "Leave it the hell alone"...

We are just now in the stage of maturing and sorting the wheat from the chaff. The entities still in the game who are unable to properly self-regulate will surely fall by the wayside as the bigger players in the industry fall into lockstep with regard to best practice in MCA underwriting and funding. Obviously, those of us operating as direct lenders have a distinct advantage here, as the non-syndicating ISO/Broker space is going to be the first to suffer from burdensome industry regulation due to a number of factors, including the inability to capitalize on origination and servicing which drives direct lender's profits.

There are more than a few smart cookies on here, but the true Oracles are few and far between, and can likely be counted on one hand. Folks like Amanda, Chambo, Isaac, Bob, Dan, and a few others. (Sorry if I missed you, but you all know who you are.)

With all that having been said, it's too early to worry about regulation, especially on a Federal level. It will be done first at the state level, as has been done in CA, as they are attempting in IL, NY and a few other states. It will take a long time before we see any meaningful change at a Federal level which impacts us all equally. Just as many funders now cannot/will not fund in CA due to the CFLL, there may be a few more states no one will touch due to the same sorts of unnecessarily restrictive legislation... Only time will tell."

[J.Celifarco]

I posted this as a comment in a thread. I'm interested to see what everyone else has to say. If any veterans would like to contribute some inside knowledge, I'm all ears. Do you think we can successfully self-regulate before they come banging down our doors? Chime in!

"We'll see what happens with regard to industry regulation. If we're "lucky", we'll get a Trump presidency, and we'll have at least another 4 years to self-regulate. I'm pretty embattled right now, looking at what I feel to be two very, very bad choices for our next Commander-in-Chief, both for very different reasons. But I can at least appreciate what Trump would do for our industry, which is "Leave it the hell alone"...

We are just now in the stage of maturing and sorting the wheat from the chaff. The entities still in the game who are unable to properly self-regulate will surely fall by the wayside as the bigger players in the industry fall into lockstep with regard to best practice in MCA underwriting and funding. Obviously, those of us operating as direct lenders have a distinct advantage here, as the non-syndicating ISO/Broker space is going to be the first to suffer from burdensome industry regulation due to a number of factors, including the inability to capitalize on origination and servicing which drives direct lender's profits.

There are more than a few smart cookies on here, but the true Oracles are few and far between, and can likely be counted on one hand. Folks like Amanda, Chambo, Isaac, Bob, Dan, and a few others. (Sorry if I missed you, but you all know who you are.)

With all that having been said, it's too early to worry about regulation, especially on a Federal level. It will be done first at the state level, as has been done in CA, as they are attempting in IL, NY and a few other states. It will take a long time before we see any meaningful change at a Federal level which impacts us all equally. Just as many funders now cannot/will not fund in CA due to the CFLL, there may be a few more states no one will touch due to the same sorts of unnecessarily restrictive legislation... Only time will tell."

I think it is too late for the self regulation. The industry has gotten to big and we are already on the map so to say.. People have noticed and are already looking at the industry. If we were going to self regulate it needed to happen before we grew to the size we are now.. At this point the only thing we can hope for is that the regulation does come on a federal level and not at the state level.
If regulation happens at the state level then we will run the risk of there being 50 different sets of rules that need to be followed.. How long do you think it will take an approval if underwriters will have a different set of rules to follow or paperwork needed depending on what state the business is located in. The best bet would be if some common sense regulation came on a federal level. This would make one set of rules for everyone to follow and would be by far the best outcome in my oppinion.. Some kind of regulation will come down eventually now it is just a matter of what it is going to be

[BoostAaron]

I think it is too late for the self regulation. The industry has gotten to big and we are already on the map so to say.. People have noticed and are already looking at the industry. If we were going to self regulate it needed to happen before we grew to the size we are now.. At this point the only thing we can hope for is that the regulation does come on a federal level and not at the state level.
If regulation happens at the state level then we will run the risk of there being 50 different sets of rules that need to be followed.. How long do you think it will take an approval if underwriters will have a different set of rules to follow or paperwork needed depending on what state the business is located in. The best bet would be if some common sense regulation came on a federal level. This would make one set of rules for everyone to follow and would be by far the best outcome in my oppinion.. Some kind of regulation will come down eventually now it is just a matter of what it is going to be

Thanks for the input John.

State by state regulation on a national level would be a true nightmare. I can only hope that we never see that happen. I guess the usual suspects are already pursuing, or have already adopted regulations for the industry (CA, IL, NY, MA, NJ), but hopefully the proposed pieces of legislation continue to stall out. Obviously, many smaller houses simply don't operate in CA due to the CFLL, so I think you're spot on regarding the onerous burden that piecemeal legislation places on us, especially as direct lenders...

[It's A Wonderful ISO]

I would also agree, self-regulation for the morale, intelligent thinker makes sense, however, the corrupt greed-heavy boiler room dwellers, the "direct lenders" working out of their parents basement and the 1.75 factor rate generals will never adhere to policy, they'll run themselves and everyone else into the ground and take everyone with them, then, like the disease they are, will continue to latch onto the next wave, (merchant services, debt settlement, collections, energy, water, etc etc etc) and suck those industry's dry and give them a bad name, see debt settlement. Many, are in for a rude awakening.

I continue to see "direct lenders" creating, building and both directly and indirectly operating inside/outside sales forces on behalf of the company. This is a conflict of interest and its creating more problems then ever before. I've watched first hand large direct lenders build "outside" sales offices, take the **** deals on their books and have the "ISO" move them. The "underwriters" who are supposed to underwrite a file are funneling those leads to sales guys that give them a split of commission if they close.

Things are getting out of hand. I hope to see some positive resolution soon for the entire industry and the ones that do it right, I know Aaron is one of them after a few conversations. Good health wealth and success to all who read this as well. Cheers folks.