Tag: TLE

07
Nov

Upheaval in the Business of Lending while Continuing to Serve Consumers & Tribal Collaborations TLE

The “business of lending to the masses is under constant attack!” Witness the recent passage of the <36% APR HB539 bill enacted in California, the devastation of lending to the under-banked “thin-file” residents of South Dakota, the latest machinations occurring in Nebraska…

 

We simply do not have the clout, money, political connections and collaboration that our opponents have at their disposal. [Think banks able to access capital at ridiculously low costs from the FED (taxpayers], credit unions; they are non-profits and pay no taxes, the various so-called consumer protection advocates who in many cases are simply shills having agendas that fail to acknowledge the plight of the 50% of all US households who cannot access $400 cash when suddenly facing an emergency financial challenge.

 

Sure! Our industry has some bad apples! Every endeavor does, be it for profit, charitable, non-profit…

 

Do you realize the executives at the Red Cross [$500,000/yr} or the infamous CRL do not work for free? They want to keep those soft jobs!

 

We are not saints! But we certainly are community leaders in many cases who deploy our profits to provide service to our customers, our community, our churches, our employees and their families, our investors… hell, even our landlords and banks! [Take a look at Amscot Financial as just one of MANY examples.]

 

The business of lending to the masses is undergoing tremendous upheaval. The internet, smartphones, artificial intelligence, data scraping, automation, the millennial generation is replacing the “Boomers,” websites, chat boxes, identity fraud, LMS cloud-based platforms, same-day ACH, big brother Google and Facebook, the “bank model” and its access to cheap money, the <36% APR theme…

 

ALL these issues and MANY more are creating disruption AND more importantly, OPPORTUNITY for those of us who embrace change, stay informed, reverse engineer the newest business models available to legally and profitably serve the hundreds of millions of hardworking folks who need a financial leg up now and then. 

 

collaboration with a Native American Indian tribe is BUT one of many solutions to your path remaining in business while helping your customers deal with life.

 

PS: Reach out to meJer TrihouseConsulting@gmail.com if you would like to explore potential solutions to your specific challenges in your B2C business. My Team and I travel the world, meet with executives and founders of a multitude of companies offering tribe introductions, capital raises, methodologies & products that adhere to the <36% APR issue while still achieving 200%+ APR’s, executive search, new product & platform launches, California HB539 solutions… I’m always available to explore… and if I can’t help, guaranteed I know a savant with the expertise to help you!

 

 

 

Tribal Lending-TLE-Collaboration

Click the Image Above to Explore a Collaboration with a Federally Recognized Native American Tribe in the B2C lending Space!

Tribal Lending Provides More Opportunities For America’s Indigenous Peoples

By: Mary Jackson. Forbes Councils Member
This “Opinion Piece” below appeared in Forbes and was written by Mary Jackson the CEO of the Online Lenders Alliance, the online lending industry’s center for lending, technology, and innovation.
Read and “digest” wholeheartedly Mary Jackson’s insight! 

For some Native American tribes, online lending has become a critical part of their economic development efforts. Unlike the federal, state and local governments, which fund operations through levying taxes, Native American tribes rely on economic development enterprises to provide essential government services to their members.

Many tribes are also located on geographically isolated reservations that are far from urban population centers. For these tribes, on-reservation business activity is difficult to build and harder still to sustain. With traditional forms of commerce largely unavailable, the internet and e-commerce have emerged as lifelines to them, and Tribal Lending Enterprises (TLEs), specifically, have been a major asset in helping generate revenues to fund their governments and provide for their members.

Lending revenues increase funds for the tribes’ operating budgets, helping them to provide essential services like health care, elder care, infrastructure, and education. In addition, these businesses create jobs in areas where unemployment has long been rampant, providing a meaningful opportunity to tribal members in their own communities. In short, they allow tribes to be more independent and self-reliant, and tribes have created their own enforcement practices and regulatory bodies to ensure they are in the driver’s seat.

Like virtually any other business sector, the online lending industry has a variety of participants who bring it to life and ensure it operates smoothly. The membership of my online lending association comprises a diverse cross-section of the industry, including big, publicly traded companies; small, privately owned businesses and companies owned and operated by sovereign Native American tribes — among others. In addition to actual lenders, members rely on third parties such as service providers, marketing agencies, web designers, application developers and data bureaus.

For Native American tribes who have developed TLEs, service providers and vendors play a vital role. Just like lenders of all types, tribes partner with other fintech companies to offer credit in innovative and convenient ways — thereby making loans available to consumers who otherwise would have little or no access to lending options.

These third parties enable creditors to reach different customer segments by leveraging an existing customer base or customer lists, underwrite borrowers more effectively by using nontraditional data sources that go beyond the FICO score and make additional loans by providing liquidity and funding. They help with advertising and marketing the business as well as with screening customers pursuant to fraud prevention and know-your-customer guidelines.

The U.S. Treasury’s fintech report and the Office of the Comptroller of the Currency (OCC) have acknowledged this vital business function for banks and other lending businesses. According to the OCC Comptroller’s Handbook on Installment Lending, the most common reasons for banks to use the services of an outside vendor include cost savings, capacity reasons and access to expertise and resources. This is also true for tribal lenders.

As to regulations, tribal lending is subject to the same 19 federal laws that banks and all other financial service providers must adhere to in their product offerings. Laws such as the Truth in Lending Act, Equal Credit Opportunity Act and the Electronic Fund Transfer Act are just a few of the notables. In addition, sovereign tribal nations set their own financial services laws and regulations. Just like states, tribes have formed their own regulatory authorities, which enforce tribal and federal regulations for lending and consumer protections.

For years, tribes have fought for their right to self-determination, which includes the power to enact their own laws and be governed by them. As they have entered the e-commerce frontier, many tribes have set up sophisticated online lending businesses that can compete with the biggest players in the industry.

This is a relationship that should be encouraged — and not disparaged, as some industry opponents have done in recent years. The service providers who partner with tribes are a key part of driving them forward and helping to establish robust, well-run and viable businesses. And as a result of these partnerships, many tribes are thriving as they’re seeing previously unforeseen revenues fill tribal coffers.

These tribes are true entrepreneurs and are a model for the entrepreneurial spirit. New entrants to the online lending space like these are welcomed, and they are a sign of the diversity in fintech that we should all be embracing. The service providers who they partner with play a key role in bringing forth well-established and compliant lending practices to all lending entities — big and small, old and new.

Link to original Forbes Piece: Mary Jackson

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Jerome – Trihouse 702-208-6736 Cell
Knowledge Store: Resources for Lending $$ to Consumer
https://www.PaydayLoanIndustryBlog.com
24
Sep

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

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]