Many Small and Mid-sized Businesses Risk Losing Their Bank Loans San Francisco Chronicle (press release)
San Francisco, CA (PRWEB) August 18, 2011
US Capital Partners, LLC, a direct lending and advisory firm, sees firsthand the result of the sluggish and uncertain economic recovery as more businesses come to them because their banks are calling their bank loans. Banks do not always advise their clients in advance that their loans are being called until right before it takes action, leaving business owners scrambling to secure financing to keep the lights on. The first steps to being proactive about financing are understanding the current banking realities and knowing how to assess if your organization's bank loan is at risk to avoid reactive financing problems.
Jeffrey Sweeney, CEO and Managing Director of US Capital Partners , is all too aware of current banking practices and advises clients on what to do if they find themselves in this scenario. "Typically, banks 'pull loans' because of poor financial performance by the company who owns the loan, it can also be due to the bank's own credit problems." he says. "Lately we see lots of companies come to us because the banks are about to call their loans -we start first by measuring the risk of the bank calling a small-business loan, then explore options for refinancing." Sweeney recommends owners understand the following two categories when measuring their risk of losing business financing:
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Are you looking to refinance or need financing for a new home purchase? Are you working with a direct lender?
If you are in need of financing for a new home purchase or looking to refinance your current mortgage, a simple call today can save you thousands. I work for a direct lender that cuts out the lender costs and higher rates that the middle men charge to make a profit. In a matter of minutes I can provide you savings that you will see each and every month.
Special loans for Reserve & National Guard members.
Special loans for union members, their spouses and their children.
Every loan option available!!
Please contact me at andrew.l.kindya@chase.com
Not the place to drum up business. Go out and do it like the rest of us.
Does anyone know what direct lender use only "experian" credit score to refinance on mortgage?
Please do not direct me to any brokers or money maker or credit repair sites. I really would like to work with only direct lenders who use experian credit scores and not just the middle score.
I know that Nationstar formely Centix Mortgage use only Experian credit score..but is there any other direct lender or mortgage company that does the same?
None of them only use Experian. They all pull a tri-merged credit report. They all use the middle score. You won't find one that just uses Experian.
I only know of one Texas mortgage company that uses just one score. They expect that to be the LOWEST score in their region.
VERY few mortgage brokers, direct lenders, or banks use only one score. That is far more common to auto loans. The reason is that there is MUCH more money at stake.
I think you have quite a search ahead of you, but don't give up. Such companies do exist. You just have to find one that lends in your state.
What are the advantages/disadvantages of refinancing a mortgage with a direct lender versus a broker?
I personally choose not to use brokers, but I have worked in the real estate industry for 20+ years. I go online and do a bunch of research as to who has the best rates and go from there.
Brokers (most) only shop your loan to their preferred lenders, those that will pay THEM the best amount, rather than where YOU will get the best deal. Not all brokers, but most.
You can do both, shop around through a broker, or more than one and do research on your own. And let them know you're working with others, so they'll know if THEY don't get you the best rate someone else will.
You have to be really pro-active with direct lenders though. Let them know what you will and won't pay and at least give them the impression you're not one of the sheep who blindly follow what they say you should pay.
There's pros and cons with both. If you're up for it and have the time, go the solo route. If you're not, try to get a broker or 2 to work for you.
Good luck!
First let’s dispose of the myths. After your loan has been settled and the check has been cashed, it doesn’t matter if the lending institution goes bust. Someone else will takeover the servicing of your loan without any change to the terms of your loan. There is a concern however, if the lender were to go out of business prior to your closing. This event could jeopardize fees you’ve paid, the rate you have locked, the loan approval and the timing of your closing. Fortunately,this rarely happens since most states monitor solvency of lenders on a regular basis.
Another myth is that the monthly payments will be made to the institution that “holds” the mortgage. In the vast majority of loans issued, the mortgage is sold off into a large pool of loans, called “Mortgage Backs” that are sold back to the public as securities. The monthly payments on a mortgage are made to a servicing entity that collects the payments and allocates the portions for principal, interest, taxes and insurance. They also maintain the account and act as the borrower liaison. So unlike what most borrowers assume, they have no ownership position in the loan. Can a Bank be better priced? The answer is sometimes yes andsometimes no. Pricing structures and programs will vary greatly from bank to mortgage broker and from bank to bank as well. Pricing will not be as dependent on the type of institution as it will be on the programs the institution has available at that time. Sometimes a Mortgage Banker or Broker will be better priced than a Bank but then a few weeks later the one with the best pricing may flip flop. It is important for consumers to check all sources and not be limited because one is or is not a Bank.
Do Mortgage Bankers and Brokers have a better product menu and greater expertise than a Bank? The answer again is sometimes. As in the scenario of price, service and competency are to be judged by the individual rather than type of institution. The important distinctions are, reputation, resources andaccountability. Almost everyone knows a friend, relative, neighbor or co-worker who has recently had a mortgage borrowing experience.
This is a great way to get gather the names of the better mortgage loan salesperson a/k/a originators in your area. Another source can be your local Realtor or your Attorney. Not only will they have multiple experiences with these loan originators, they will also act as a source of accountability for the loan originator. A mortgage loanoriginator will be very fearful of losing a valued referral source due tobad feed back from you. That fear stems from the fact that theyprobably receive other referrals from that source as well.
The loan originator knows that most Realtors and Attorneys can be veryinfluential in their marketplace so the originator is going to be accountable for his/her actions. This accountability will help keep them on their toes for you. Once you have a list of accountable,reputable loan origination candidates, you can see if the advice,programs and pricing they offer suit your needs. The result should bethe best overall loan and mortgage experience for you.
When purchasing or refinancing a home, should you go through a direct lender or use a broker?
get as close to the money as you can. lending tree is nothing more than a marketing company they dont lend money they sell your information to 8 people! brokers are middlemen although some do work for directlenders they tend to be limited it what they have yes theyare directlenders but what we dont do they broker for! its all well and good and I've been there Its how i started out!!!!
a good directlender has a wide rage of products to choose from. brokers as well get what is refered as wholesale lines they get great rates but instead of passing those rates they add yield spread!
in other words they if they could get you 5.750% the bank tells them if they charge you .50 they will give them a rebate of 1%
so you end up paying 6.250 so the broker can make a couple of thousand bucks ( now it must be said this isnt only brokers that do this its banks and some directlenders)
it is a way to make money and keep the borrower happy they want to get paid more but dont want the borrower to know it so its burried in yieldspread! you;; never see it!
I can say that I work with over 440 lenders who can supply different programs for your needs.
Mortgage brokers receive 'wholesale rates' which are much lower than retail. They charge their costs to the rate, and it's usually lower than most lenders.
Lenders/Banks on the other hand have a huge overhead cost to pay, and you will see it on their rate/fees.
Some people like the idea of working with the bank because they feel that a bank Loan Officer is less likely to charge high fees, be dishonest, etc. The truth is that Loan Officers (retail or wholesale) are typically honest people, but the few that give the industry a bad name can be found anywhere. So, that perceived benefit doesn't really exist.
The only real advantage to going directly to a bank is if they have a program that you need in order to qualify that doesn't exist on the wholesale (broker) side, i.e. CDA.
We are both loan officers and always tell our clients to shop around for the best deal. Ask friends and associates who own their own homes- who their mortgage company is - and if they are happy with the service they receive.
Loan officers are there to provide a service - we can't tell you who is the best. Don't be scared to start at your bank and see what they can offer you. From experience - do you know and trust your banker? Is your banker a trusted resource that you have a personal history with - or are they a young college kid with a retail background - who can sell you on one of four products.
On the mortgage broker side - we have access to hundreds of different lenders to shop your loan. The downside is that there are bad apples in every business, especially a commission driven industry. Use your instinct to help you decide.
For most people this is the biggest financial decision of their life, you are doing the right thing by asking questions. Nobody should be pressuring you for your business- but they should be providing you with options that are sound and reasonable for you. If it sounds to good to be true - it probably is.
Don't be afraid to check out your broker through the Department of Real Estate in your respective state. Their website usually has a searchable index where you can find out if there have been complaints against the brokerage.
Good Luck! If you have any further questions please feel free to e-mail us.
Maresa&Tizoc
More programs are available on the broker side.
End of story.
Where can I find good Mortgage Leads for homeowners in california who are looking to refinance??
Also Are thet going to be cost effective? I would also like to work with folks who work with direct lenders.
county courthouse. and it's free.
I work with a nationwide mortgage lender and we have an abundance of them..
email me for more information...
The price is like $2.00 or $3.00 a lead, which compared too phone tranfers and internet leads..is a real bargain .
I think you can choose credit score, credit card debt, min mortgage balance and other stuff too...I don't remember everything.
- gary
I need to refinance my home ....Can someone to say yes to 85%LTV?
I worked with many lender and yet I can't seem to find anyone to approve my loan for 85%LTV...I understand that I may have a difficult loan due to the fact my midscore is: 542..1X60day late; a reprossesion; collections;etc....but I have the equity in my home..and I have a decent income..so what is the problem?
I have been approve for 75-80%LTV, but I desprately need 85%..I want a direct lender to help...who can say YES?
I can help. If you are serious please call me @ 516 535 5800 ext 239 my name is Jeff and I work for AFG.
757-262-8462
go and talk to an accountant or a financial adviser. i would stay away from brokers and loan officers that could actually worsen your situation.
I need to refinance my home who can say Yes to 85%LTV?
I worked with many lender and yet I can't seem to find anyone to approve my loan for 85%LTV...I understand that I may have a difficult loan due to the fact my midscore is: 542..1X60day late; a reprossesion; collections;etc....but I have the equity in my home..and I have a decent income..so what is the problem?
I have been approve for 75-80%LTV, but I desprately need 85%..I want a direct lender to help...who can say YES?
You need an experienced professional from a large bank. Someone that can be creative with financing.
You should give Mike Franklin a call. He works at Chase Bank in the B/C loan division. If he can't help you, then no one can.
I believe I can get you the 85% LTV without a problem but your rate wouldn't be serving your long term interests.
I can do it if that's what you want, but I reccomend letting me sit down with you and work on your credit a little bit before you decide to go with a subprime loan like the one you're looking for. It wouldn't take long and the better terms would be worth the extra effort.
Give me a call and we'll discuss your options. My phone number is 818-361-8585 (Just ask for Kevin)
What are some new requirements for home purchase or refinance?
I've seen alot of changes in mort. lender requirements;
i.e. 3 months principal, interest, tax and insurance payments seasoned for 3 months in a personal bank account prior to buying or refinancing a home. Verification of rental pmt. history from a property mngmt. co. or cancelled checks for the rent. Collection accounts settled or paid with proof either by letter of coll. co. or a cancelled check, No money orders. Three open and established credit accts. open for at least 24 months and with one being at least 2K high credit limit. A debt vs income ratio of no more than 45%. Adding all minimum credit payments, including mortgage, tax and insurance and dividing them into gross monthly income. Qualifying with bank stmts. in borrowers name using 24 months avg. deposits, no transfers, NSF or direct deposit. Borrowers name on home phone for res., bank acct. with matching address of residence. Business ph# listed with 411, current business lic. What new requirements have you seen?
Frequently Asked Questions
What Fannie Mae Does
What does Fannie Mae do?
-------------------------------------------------------
Fannie Mae is a financial services company on the New York Stock Exchange (FNM/NYSE) serving the American home mortgage industry. Fannie Mae offers banks and other mortgage lenders financing, credit guarantees, technology and services so lenders can make more home loans to more consumers.
Fannie Mae does not make home loans -- we help mortgage lenders serve homebuyers. By serving more than 1,000 lenders nationwide, large and small, Fannie Mae helps to make home financing more possible for families from all walks of life across America.
http://www.fanniemae.com/faq/faq1.jhtml?p=FAQ
Not sure if you're asking this from a consumer standpoint or a mortgage professional standpoint, but several of the criteria that you mentioned are not accurate.
FannieMae loans still do not require reserves, verification of rent, tradelines, payment of collections or a debt ratio less than 45%.
I recently got a loan closed where the borrower had no open tradelines, $24,000 in open collections, no rental history, and a debt ratio over 50% and the fixed 30 year rate was below 7%.
So, while I agree that most lenders are tightening their standards, I haven't seen it to that degree yet.
The criteria that mentioned for bank statements has been around for awhile.
While I appreciate the background information on FannieMae, I have been in the business for over 10 years and I'm familiar with who they are.
99% of all "conforming" (read: good credit) loans are underwritten to their standards/guidelines through their automated underwriting system (Desktop Underwriter) and this system decides what is approved and what is not. FannieMae is not a lender - they're a GSE (Government Sponsored Enterprise) and they purchase loans.
I need to refinance my home..I need someone to say yes to 85% LTV?
I worked with many lender and yet I can't seem to find anyone to approve my loan for 85%LTV...I understand that I may have a difficult loan due to the fact my midscore is: 542..1X60day late; a reprossesion; collections;etc....but I have the equity in my home..and I have a decent income..so what is the problem?
I have been approve for 75-80%LTV, but I desprately need 85%..I want a direct lender to help...who can say YES?
Why settle for the loan that you would get with that fico?
I believe I can get you the 85% LTV without a problem but your rate wouldn't be serving your long term interests.
I can do it if that's what you want, but I reccomend letting me sit down with you and work on your credit a little bit before you decide to go with a subprime loan like the one you're looking for. It wouldn't take long and the better terms would be worth the extra effort.
Give me a call and we'll discuss your options. My phone number is 818-361-8585 (Just ask for Kevin)
I am tying to efinance my home in texas. Who is the best direct lending company ? Direct lenders only.?
What is the most important thing to look for when Refinancing an existing loan? Whats the importance of Rate , APR & Points and the difference between Rate and APR?