Quote Originally Posted by Michael I View Post
dont throw this back onto the brokers , lenders need to take some responsibility here . they should cut off iso that are constantly submitting files not in their box. but bottom line they should not be pulling credit for no reason
Oh, 100% I am not putting this on the Broker.

As a Direct Company who takes on a wholesale company as a Partner in any capacity- they should have more than just submission criteria and guidelines. Since there are low entrance barriers for either a direct or wholesale company to come into the AltFi space and solicit Businesses- both are equally as guilty when it comes to the "common sense" ethics. Who is responsible for laying down the law comes from the Funder/Lender themselves. Unfortunately, there is a lot of enabling since one company can offer great products and service but have a more strict submission criteria and overall partner guidelines than that of a Funder who says "send us anything!" when their investors/money doesn't really want everything.

Bottom line: Preliminary offers should be based on financials and health of the business and overall REQUEST AND USE OF FUNDS. Final approval numbers and payments: Pending a background and credit approval.

Broker: The pre-qual questions asked by an Adviser to a Merchant like "Do you know your credit score?" or "Are there any derogatory marks on your credit report that would raise concerns from our underwriting office that we should make note of before starting the submission process?" should clear up any initial thoughts on the "Who should I send this deal to?"

Funder: If you need to pull credit to ACCEPT a file, then you are wasting your time and money and should review your submission department and how you intake deals. Yes, you may be afraid that your offer may be shopped- but it's going to happen anyway so you might as well not spend that money on that credit pull or paying your UW for wasted time (my humble opinion)