CFPB Elephant Dies-The PDL Industry is Dancing in the Streets WITH Their Customers

By | Nov 30, 2017

By Jer– New Sheriff at CFPB: The PDL Industry is Dancing in the Streets WITH their Customers!

As pointed out on several industry media sources, “There is a new sheriff in town at the CFPB!” 
Euphoria is overtaking the private, Tribe and publicly owned payday loan, small dollar loan, unsecured loan, car title lending… industry.
It’s as if an elephant has been sitting on our chests since August of 2013 and finely wandered off TO DIE!
CFPB

CFPB

You know the old story about the matriarchs of the elephant families leaving the herd to wonder off to their elephant graveyard?

Well, now we can add a similar story to the bunglers, meddlers, hypocrites and unelected, ivory enshrined bureaucrats who  pontificated from their lofty perches about what THEY think is good for consumers in America.
All of us took a hit by CFPB government employees. Firearms dealers, payday lenders, car dealers, ammo dealers, shooting ranges, gaming, marketing companies… hell, even strippers!
World Acceptance, Santander, PHH, Enova, EZcorp, Avant… are all shrugging off any future unwarranted attacks against them by the CFPB while worried consumers of these small dollar loan products are relieved by the obvious continued access they’ll have to short-term loans for solving their financial worries.
YEP! We live in wonderful times!! Eventually, persistence pays off! For ALL of us.
And, on the heels of the latest CFPB defeats, new lenders continue to launch via both State and Tribal collaborations, industry veterans continue to participate in capital raises, the “big boys” in our space expand, and the biggest seasonal demand by consumers is about to begin!
Curo Group: Raising $100M with the sale of 6.7M shares at hoped-for range of $14-$16 each.

Entreprenurs with serious experience in the unsecured lending space going “balls to the wall” with teams of tech and finance at their helm.

Over the last five sessions a group of payday lenders and other former or potential CFPB targets have been partying: World Acceptance Avant, Lendup, Lending Club, Dave, WRLD, OneMain Holdings, Santander Consumer, PHH Corp. Enova, Ezcorp and on and on!

Let the GOOD TIMES ROLL!!!!!

Need help making money by lending money to the masses? Start Here!

That’s all folks: TrihouseConsulting@gmail.com

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CFPB-Unsecured Loan Industry to Prosper Under New CFPB Head

By | Nov 21, 2017

CFPB

This originally appeared on Mortgage News Daily-by BY: ROB CHRISMAN  here: Here’s something to think about. If the CFPB “dials things back,” wouldn’t the states step in and increase their consumer-focused regulatory levels? Multi-state lenders certainly wouldn’t like that. Since the state regulators have been in regular communication with the CFPB and knowledgeable as to the Bureau’s regulations and impact upon consumers (the protection of whom the states have always viewed as their primary function) it can be expected that we will see more state regulation as the CFPB’s role is reduced. In Pennsylvania, for example, a recent bill supported by the Department of Banking and Securities to license mortgage servicers, incorporated the CFPB servicing regulations. This is a trend that may become viable for other states regarding those CFPB regulations that might be eliminated or reduced in effect.  This is, of course, speculative at this point but it should be considered as we move ahead representing the industry in the states.

Payday Loan ConsultantsAccording to media sources, President Trump is expected to select Mick Mulvaney, the current Director of the White House Office of Management and Budget (OMB), to serve as the interim Director of the CFPB upon Richard Cordray’s resignation at the end of this month. The CFPB is not going away, and neither is Dodd-Frank, although policies and procedures may change. And do we really want it to, given that lenders and vendors in the industry spent billions of dollars implementing the Dodd-Frank framework in our businesses.

Mulvaney is a former South Carolina congressman and served on the Financial Services Committee. Mulvaney had previously been quoted during interviews as being dissatisfied with the CFPB’s performance and even said its lack of accountability showed it to be a “joke”. He was one of those in Congress who reportedly wanted the CFPB to be eliminated. Certainly, the administration intends to reduce federal regulations and the CFPB would make a prime target.

Julian Hebron of The Basis Point issued his thoughts on the future structure of the CFPB.

Ever heard of Think Finance? It doesn’t matter – the CFPB has. On November 15, the CFPB announced it had filed a complaint against Think, a Texas-based service provider, alleging that it had assisted in the collection of loans that were, in whole or in part, void under state law. The complaint filed in the U.S. District Court for the District of Montana alleges that the service provider, which provided services to three tribal lending entities engaged in the business of extending online installment loans and lines of credit, along with two companies responsible for the collection process (collectively defendants), assisted in the collection of loans that consumers were not legally obligated to pay based on identified states’ usury laws or licensing requirements.

Rob Chrisman began his career in mortgage banking – primarily capital markets – 27 years ago in 1985 with First California Mortgage, assisting in Secondary Marketing until 1988, when he joined Tuttle & Co., a leading mortgage pipeline risk management firm. He was an account manager and partner at Tuttle & Co. until 1996, when he moved to Scotland with his family for 9 months.
He returned to the United States in mid-1997 and ran Secondary for Standard Financial, a sub-prime lender in northern California. In late 1997 Rob was hired by CrossLand Mortgage to start, and be the president of, a sub-prime company named OnCall Mortgage (a division of CrossLand). OnCall Mortgage was in existence until Wells Fargo purchased First Security Bank (the owner of CrossLand) at the end of 2000.
Rob then joined CMG Mortgage, a wholesale mortgage bank, as the Director of Secondary Marketing. In early 2003 and re-joined Tuttle Risk Management Services, Inc. TRMS (now Compass) provides mortgage pipeline risk management for mortgage companies and thrifts that seek to originate and sell loans into the secondary mortgage market. In November of 2006 Rob left TRMS to become the Director of Capital Markets for RPM Mortgage, a retail residential lender, leaving there in late 2008 to focus on not only publishing a widely read daily market commentary on current mortgage events but also on his family.
He is on the board of directors of Peoples Bank, a mid-sized depository in Kansas, and of IFC, a financial services company which advances capital to heirs, He is also an associate of the STRATMOR Group, a member of the California Mortgage Bankers Association, and of the Mortgage Bankers Association of the Carolinas and its membership committee. Rob has provided expert witness services for mortgage and real estate-related cases, has lectured to groups around the country.
Rob holds a BS from Cal Poly, San Luis Obispo, and an MBA from UC Berkeley.
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State of Oklahoma & 4 Tribe Lenders vs CFPB

By | Nov 10, 2017

The CFPB is attempting to usurp States’ Rights again! Yes, unelected bureauocrats attempting to make further inroads to payday loan lending and tribal sovereignty.

We’ve written about tribe lenders several times ever since the Wall Street Journal published their front page piece that quoted a founder, Jerry Ayles.

No need to write more on this matter today. Ballard Spahr does a great job with this piece on their Blog.

Unsecure4d Loan Business Consulting: Installment lending, payday lending, car title lending...

Unsecure4d Loan Business Consulting: Installment lending, payday lending, car title lending…

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MLA Military Lending Act and Payday-Car Title Loans

By | Oct 25, 2017

By: Jer AylesPaydayLoanIndustryBlog.com The MLA Military Lending Act, outlaws implementation of ARB arbitration agreements for consumer credit contracts entered into by active-duty servicemembers and their dependents.  Lenders are denied by the MLA from including arbitration agreements in contracts for small dollar loans, payday loan, title loans…  extended to active-duty service members and their dependents where the credit is a closed-end payday loan with a term of 91 days or less in which the amount financed does not exceed $2,000, a closed-end vehicle title loan with a term of 181 days or less, or a closed-end tax refund anticipation loan.  Additionally, these MLA rules apply to additional products, including credit cards, installment loans, private student loans and federal student loans not made under Title IV of the Higher Education Act, and all types of deposit advance, refund anticipation, vehicle title, and payday loans.

Get access to our resevoir of intellectual property at: Payday Loan Industry Resources

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TLE: Tribe Lending Enterprise – Term Sheets, Tribe Resolution, Pro Forma, Marketer/Servicer Agrrement

By | Sep 24, 2017
Allen Parker: Sovereign Matchmaker for Tribe Lending

Allen Parker: Sovereign Matchmaker for Tribe Lending

Tribe Sovereign Nation Documentation, Term Sheets & More

Do you need documents to form a tribe installment. payday. line-of-credit or car title loan company?

I offer term sheets, tribe loan portfolio pro formas, TLE and Tribe Economic Development word docs… everything a new lender or a “servicer/marketer” requires in order to legally and formally launch a tribe owned online loan business.

Many Native American Indian tribes have have authorized consumer financial services businesses as legitimate conduits for generating tribe revenue and develop Tribe’s economy to improve the Tribe’s economic self-sufficiency, to enable the Tribe to better serve the social, economic, educational, and health and safety needs of its members and visitors, and to provide its members with opportunities to improve their own economic circumstances.

In an effort to protect consumers, borrowers and their constituents, all Tribal Financial Service providers are required to be licensed as a Tribal business and by the Tribal Financial Services Regulatory Authority (“TFSRA”), and to adhere to the Tribal Financial Services Regulatory Code, as well as all applicable federal and Tribal laws and regulations.

Tribally Owned and Operated Financial Service Businesses

The Native American Financial Services Association (NAFSA), an advocacy association advocating for responsible payday, installment, title loan and line-of-credit loan products, notes that “tribal online lending provides a critical economic lifeline for sovereign tribes in remote areas.” Revenue and profits generated by tribe payday and installment lending arms is used to fund tribal infrastructure as well as cultural, youth, employment and health care programs.

Investment: $7500.00

Note: All Word Templates are editable for your private use.

  1. Template-Standard Tribe Resolution Creating a Tribally Owned Business
    1. A RESOLUTION OF THE GENERAL COUNCIL OF THE (name of tribe) CREATING AND ESTABLISHING THE TRIBALLY-OWNED BUSINESS (NAME) PURSUANT TO (vesting power in General Council resolution) [Word Doc.]
  2. 3 year Pay Day Lender Loan Volume Projections
    1. (PDF Doc.)
  3. “THE RISKS AND BENEFITS OF TRIBAL PAYDAY LENDING TO TRIBAL SOVEREIGN IMMUNITY”

INTRODUCTION: [25 page PDF by Bree R. Black Horse J.D. candidate at Seattle University School of Law, and an enrolled member of the Seminole Nation of Oklahoma in cooperation with The American Indian Law Journal. Public Domain]

  1. Two Key Tribal Court Cases:
    1. While there have been many, many cases upholding tribal sovereign immunity over the years, two in particular are specific to tribally owned payday loan businesses. [4 page PDF]
  2. 3 Year Proforma.
    1. A 3 year tribe pro forma portfolio [Excel format]
  3. Boilerplate Marketing & Servicing Agreement
    1. Template for TLA & Marketer/Servicer arrangement with Revenue Share Exhibit A. [12 page Word Doc.]
  4. Consulting Agreement
    1. Template Consulting Agreement with Tribe Lending Enterprise [Word Doc]
  5. Resolution
    1. RESOLUTION OF THE GENERAL COUNCIL OF THE (name of tribe) VESTING ECONOMIC & COMERCIAL DEVELOPMENT IN THE GENERAL COUNCIL  [Word Doc]
  6. Car Title Boilerplate Agreement
    1. Example Marketing/Servicing Agreement with TLE [11 page PDF]
  7. Car Title Consulting Agreement
    1. Typical Consultant/TLE agreement specific to car title loan lending [6 page PDF]
  8. Typical Lenders Introduction and Compensation Agreement
    1. Example Tribe/Consultant introduction & revenue share term sheet [5 page PDF]
  9. Example Monthly Payments-Revenue Share Agreement
  10. Typical consultant – TLE revenue share statement [1 page PDF]
  11. Example of Typical Non-Recourse Promissory Note & Security Agreement
    1. Ordinary Borrower/Lender capital security agreement [4 page PDF]
  12. Lawyers’ View: Minimizing Regulatory Enforcement Actions Against TLE and Service Providers
    1. Important Factors in a Tribal Lending Relationship [3 page Word Doc]
  13. Frequently Asked Questions Regarding the Mechanics of TLE-TOB/Marketer-Servicer Collaborations
    1. Allen Parker responses to FAQ’s submitted by potential consultants, tribes, and providers of capital. [2 page Word Doc]
  14. Typical TOB Lenders’ License
    1. [19 page Word Doc] A financial services license authorizing the TOB to do business “THIS IS TO CERTIFY that, consistent with Section 4 of the Mahalo District of the North Dakota Tribe Tribal Financial Services Regulatory Act, the enterprise under the jurisdiction of the Mahalo District of the North Dakota Tribe has been licensed by the Mahalo District of the North Dakota Tribe’s Tribal Financial Services Regulatory Commission to provide financial services in furtherance of the Tribe’s economic self-sufficiency and political self-determination. It is…”
  15. Example Consultant- Lender Representation Agreement Boilerplate
    1. As titled, an example Consultant retainer/representation agreement [2 page Word Doc]
  16. Example Consultant- Lender Representation Agreement Boilerplate
    1. As titled, a template for consultant –services/marketer agreement [1 page PDF]
  17. Example Declaration of Servicer-Marketer Skill Set Submitted to Tribe
    1. As titled, a sample declaration to tribe regarding servicer/marketer skill set [1 page PDF]
  18. Template for Statement of Consultant-Servicer-Marketer Power Point Presentation to Interested Parties
    1. Editable Power Point presentation [12 page PP]
  19. Typical Tribe/Servicer/Marketer Credit Reporting Business Rules
    1. As titled, a phenomenal Excel list of go/no-go CRA implemented business rules [Excel 10 pages]
  20. Template for “Finders’ Fee”
    1. As titled, editable Finders’ Fee for use by Consultants [2 page Word Doc]
  21. Template for “Finders’ Fee”
    1. As titled. A second version of a Finders’ Fee
  22. Example Business Development Agreement
    1. As titled, editable template for business development agreement between TLE & Consultant [5 page Word Doc]
  23. Term Sheet
    1. As titled. [4 page Word Doc]
  24. TLE-Lender-Services/marketer Bank & Loan Flow Chart
    1. As titled, an visual of “how the money flows.” [1 page PDF]
  25. “Tips for Tribe Economic Directors”
    1. As titled, a public domain analysis for tribal economic development principles. [9 page PDF]
  26. Limited Solicitation RFP
    1. A typical Request for proposal submitted by TLE’s [2 page Word Doc]
  27. PDL Sovereign Nation Manual by Allen Parker
    1. An analysis of the TLE Model [8 page PDF]

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