Category: Consulting & Talent

13
Mar

Seed/Angel Funding with Tribe Lending Enterprise [TLE] & Experienced Servicer

  • The Opportunity: Seed/Angel Funding with Tribe Lending Enterprise [TLE] & Experienced Servicer A highly experienced Team of two founders & a TLE are launching a tribal online loan portfolio in the USA. FOUNDERS’ DETAILS:
  • Founders’ contribute $1.1M cash to this launch
  • Founders’ contribute their lead aggregator company having generated 500K sub-prime consumer leads/month
  • This is not their first rodeo
  • U.S. based Team
  • Tribe lending model with a multi-pay installment loan product in 45 states.
  • Founder(s) previously successfully launched and exited tribe online loan portfolio
  • Founder(s) previously launched a highly successful online loan platform/portfolio in the most competitive, complicated state in the USA
  • Founder(s) previously serviced $20M sub-prime loan portfolio and 40K loans
  • Founders’ are family oriented – obligations, dependents, motivated, strong willed, driven, impeccable credentials… [I always favor these conditions when I collaborate.]
  • Founders’ know their loan product KPI’s. Realistic. Experienced. Well versed in Cost per Funded Loan, First Time Defaults, Customer Acquisition Costs, Lead metrics/costs…
  • Founders’ loan management software platform provides investors with 100% transparency hourly, daily, weekly, monthly… access to all accounting, reports…
  • In-house call center with highly experienced call center operations manager on Team
  • Tribe [TLE] Marketing/Servicing agreement in place with a large, sophisticated TLE – several $10M/$30M+ portfolios. • Supremely customer focused loan product offering financial literacy and credit building
  • ACH, bank accounts, CRA’s, EIN, lead generation… in place.
  • Founders have commissioned compliance officer, TLE employee(s), call center, accounting… Investor(s) • Provide $3M to be deployed year 1
  • Interest rate for investors = 15% to 24% paid quarterly
  • 15% to 50% equity to investors
  • Investor funds to be returned year 5
  • End of year 5, Investor return is $7.4M on $3M investment plus investor maintains their negotiated 15% – 50% equity in the enterprise.
  • OBVIOUSLY NO GUARANTEES:
  • Conservative performance estimates!

Year 3 = 80% return on loan portfolio

Year 4 = 100%

Year 5 = 125%

Year 5 Stabilize new investment money inflow = annuity of $750K/year.

As they say, “Your results may differ.”

• Exit strategy: maintain the portfolio as an “annuity” [estimated at $938K/year] or sell the loan portfolio for 2.2X. NEXT STEP?

• Email your contact information to: TrihouseConsulting@Gmail.com

• Conference call(s) • Meet each the Founders!

• Fall in love

• Nail down a Term Sheet.

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21
Nov

CFPB-Unsecured Loan Industry to Prosper Under New CFPB Head

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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23
Jan

Highly Experienced Short-Term Lending Executive Available – Do You Need Help?

Does your de novo or established short-term lending enterprise need a talented, experienced, executive?

 

[Name Redacted by Jer at Trihouse Consulting] has nine years of experience in the short-term financial industry. He brings extensive knowledge in multiple lending products including payday, installment and line of credit platforms. He has vast implementation experience with both the State-by-State and Tribal business models.

He has extensive relationships and intricate knowledge of the Tribal lending model. [Name Redacted by Jer at Trihouse Consulting] was the first to partner with and develop the lending platform for the [Name Redacted by Jer] Nation located in [Name Redacted by Jer at Trihouse Consulting].

He has a clear understanding of the compliance landscape needed to successfully operate in the short-term lending environment today. He has worked with one of the top compliance firms in the country, Hudson Cook LLP, to develop all collection and billing protocols that adhere to all Federal regulations and the Fair Debt Collection Practice Act. He has vast experience in all areas of call center development, from initial setup to daily management protocols and oversight.

 

[Name Redacted by Jer at Trihouse Consulting] brings all the critical business components, as well as, his business relationships including; knowledge of multiple loan management systems (LMS), specialized in lead purchasing tiers from $1 -? $100, credit risk services, banking relationships, ACH and debit card processing, underwriting and collection protocols, internal call center operations and protocols, outsourcing call center solutions with three different locations in the Philippines and Costa Rica, daily compliance protocols, QA guidelines, staff performance, profit and loss, budgeting and much more.

 

[Name Redacted by Jer at Trihouse Consulting] founded his first short term lending company in 2008. He grew that business into $10 million dollar “PRINCIPAL” portfolio, which represented hundreds of millions of dollars in revenue to the company. He oversaw the implementation of seventeen State licenses and eventually moved the company to a Tribal partnership. During his tenure, he was instrumental in developing his proprietary Loan Management System (LMS) along with multiple software applications that became the backbone of his service platform. Three years into the process, he began to license his software and also used his call center to service other financial portfolios. He’s been directly involved in starting and growing an additional six portfolios, ranging from “principal” of one million to twenty million U.S. dollars and has built three call centers from infancy to maturity.

 

The majority of micro lending companies – including so-called FinTech lenders, are crunching multiple sources of data in an attempt to analyze and predetermine default risk. In an industry with zero collateral and high interest rates, determining which customer is a better credit risk is a serious challenge. [Name Redacted by Jer at Trihouse Consulting] realized early on, there had to be a better way to determine payment risk. Through trial and error he began to test a different approach utilizing payment data from employers. Through months of testing he formulated, created software and mastered a “Patent Pending” innovation that is cutting edge. This innovation bypasses traditional credit scoring methods to determine payment risk using only the customer’s employer information. The approach of “Employer Risk Modeling” is the first loan program designed at the employer level. His company has amassed one the largest employer databases in the country connecting lenders, employers and customers. Being an innovator is one of many strong suits [Name Redacted by Jer at Trihouse Consulting] possesses.

 

During the past several years, this payment process has created over one hundred thousand checks from employers representing millions in additional revenue for portfolios.

 

Employer Risk Model

Propritary-V1

[Name Redacted by Jer at Trihouse Consulting] brings a wealth of knowledge, experience and contacts to the short-term lending industry. He has established a track record of success and understands how to build an organization one employee at a time.

 

If your organization is in need of a seriously talented executive having “in-the-trenches” operational experience in the short-term lending industry, reach out to Jer at Trihouse Consulting for an introduction today. 

[Name Redacted by Jer at Trihouse Consulting] is willing to relocate and explore all opportunities and scenarios! 

To schedule an introduction:

Call Jer at 702-208-6736 – Cell (PDT) or Jer@TrihouseConsulting.com You may request this Bio as a PDF…

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