John M Hedlund

🌟 Have You Tried LenderAI Insights? 🌟 LenderAI Insights is your go-to tool for powerful SBA lending data, and it's 100% FREE! Get answers to questions like "Which lenders had the most SBA approvals over the last five years?" Use filters to drill down by year, lender, franchise, or industry to see a comprehensive overview of SBA data! Why Use LenderAI Insights? 📊 Analytics Powerhouse: Spot trends and benchmarks effortlessly. 💡 Strategic Boost: Make smart, data-driven business decisions. 🔄 Always Updated: Access the most current industry data. 🆓 Totally Free: Yes, really! Explore detailed reports and dashboards that help you see where opportunities lie. Whether you’re looking at the big picture or focusing on specific lenders and industries, LenderAI Insights has you covered. Ready to get started? Sign up now and revolutionize your SBA lending approach! 👉 https://ow.ly/Abjh50T8RIC #MarketInsightMonday #LenderAIInsights #SBAData #FreeTool #LendingIndustry #DataAnalytics #StrategicDecisionMaking

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Looking to elevate workflow efficiency? Shastic's AI-Workflow-Automation platform is what your credit union needs to revolutionize operational efficiency and member engagement. Why Choose Shastic? -Streamline Processes: Automate to save time and minimize errors to focus on high-value tasks. -Enhanced Member Experience: Deliver personalized, digital-first services that exceed member expectations. -Drive Efficiency and Growth: Leverage predictive analytics for data-driven decisions, enhancing your competitive edge. -Seamless Integration: Effortlessly connects to your existing systems in minutes with minimal IT lift. 🔍 Transformative Impact From loan processing to member services, witness a tangible improvement in productivity, satisfaction, and ROI. Join the leaders who are already redefining the credit union industry with Shastic. 🌐 Schedule Your Demo Today Don't just keep pace with technology—lead the charge. Request your Shastic demo today and take the first step toward a smarter, more responsive, and member-focused future. https://hubs.ly/Q02Py-7B0 #AI #workflowautomation #efficiency #automation #creditunion #banking #workflow

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Bill Packer and team are correct! See my post from earlier this year for source data and further details. https://lnkd.in/gyVExG38 Interested in serving more borrowers? Have the right capabilities and then dig into this actionable data! HousingWire National Reverse Mortgage Lenders Association (NRMLA) Reverse Mortgage Daily OneTrust Home Loans #Mortgage #reversemortgage #underserved #retirement #lending

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Question for SBA lenders – Doesn’t the SBA require financial projections for startups and acquisition loans, and more specifically, don’t they ask for projected income statements and a projected balance sheet? I have had several clients send me a projection template that their banker sent them, but the bank’s template does not include a projected balance sheet. Does the SBA not actually require a projected balance sheet? Or does the bank basically take the projected income statement from a client and produce a projected balance sheet on their own, perhaps using their underwriting software? Just wondering if I am missing something here? #SBA #SMB #projections

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Trimont Set to Become the Largest Commercial Loan Servicer in the U.S. with Wells Fargo Acquisition In a landmark deal set to reshape the commercial mortgage landscape, Trimont is poised to become the largest commercial loan servicer in the United States. This comes after the company announced its acquisition of a significant portion of Wells Fargo's loan servicing business. Wells Fargo, which led the commercial mortgage servicing industry in 2023 with a staggering $669 billion in managed debt, is selling its nonagency, third-party commercial mortgage servicing unit to Trimont. This acquisition is a game-changer for Trimont, propelling its U.S. loan servicing portfolio to $640 billion and giving it a commanding 11% share of the market. Globally, Trimont's reach will expand to $715 billion in serviced loans across 72 countries. Expected to close in early 2025, the deal will see Trimont taking over the servicing of approximately $475 billion in loans. Additionally, 710 Wells Fargo employees will transition to Trimont, nearly doubling its debt servicing team to over 1,100, with the majority based in Charlotte, North Carolina. Before this acquisition, Trimont managed 2,696 loans and real estate-owned properties, positioning it as a powerhouse in the industry. Trimont CEO Bill Sexton commented on the acquisition, stating, "Trimont is very strong in the nonbank lending sector. The division we're acquiring out of Wells Fargo is very focused on the capital markets and securitization market. Putting these two businesses together now, we think, positions our business really well for what is coming in this stage of the cycle." Wells Fargo is refocusing its efforts on more profitable sectors like loan origination and securitization. The bank has seen a significant increase in its Commercial Mortgage-Backed Securities (CMBS) issuances this year, jumping to $15.2 billion from $2.2 billion in 2023. Despite scaling back its $475 billion servicing portfolio, Wells Fargo faces a 5% rise in nonperforming assets, particularly in the office property sector. As $2 trillion in debt is set to mature over the next three years, Trimont, owned by Värde Partners, is strategically positioned to take advantage of the growing demand for loan services, especially in the CMBS and Collateralized Loan Obligation (CLO) markets. On the other hand, Wells Fargo's decision to narrow its focus on core businesses marks a significant shift from its previously dominant role in real estate lending. This draft should provide a comprehensive overview of the key developments and strategic shifts surrounding Trimont's acquisition and Wells Fargo's repositioning. #Moreshifting #CRE #CommercialRealEstate

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Researchers at the Federal Reserve just published an interesting FEDS note, providing more granular insight into rising #auto lending delinquency rates. As the authors point out, auto loans account for about 25% of non-mortgage consumer credit, so understanding auto defaults is a good window into understanding overall consumer financial health. Takeaways that struck me: 1. Most of the deliquencies are from loans originated in 2022 or afterwards. (Even notwithstanding the fact that 64% of auto loans were originated in the last two years, loans originated in 22-23 have steeper delinquency rates than other vintages.) 2. The rise in deliquencies appears to be heavily driven by increasing loan sizes. Other research, including recent Consumer Financial Protection Bureau blogs, have highlighted the role of larger payments in the rising deliquencies. But the Fed authors now disintangle the components of the larger payment: they show it’s not higher interest rates, but instead higher loan amounts. Said another way, due to pandemic-era supply constraints and demand-side consumers being flush with stimulus cash “As car prices surged, car buyers sought larger loans.” 3. The not-so-great news is some of the loan size growth is due to auto lenders, IN THE AGGREGATE, loosening their underwriting standards. “The increase in loan amount likely reflects the interactions of both credit supply and demand factors: borrowers demanded larger loans amid the run-up in car prices from mid-2020 to mid-2023 and lenders, in aggregate, appeared to relax their credit standards to originate these loans.” 4. But, as James Mulholland smartly pointed out earlier today, the authors find that banks tightened their auto lending in 2022-23. (!!!) Instead, credit unions and non-bank finance rushed in with looser loans . . . leading consumers (and the broader economy) to the trendlines that we’re seeing today. Here’s the relevant quote, with footnotes omitted: “[T]he composition of lenders originating auto loans changed significantly during this period. Banks, which held about 35 percent of loans outstanding in the auto market in 2019, appeared to tighten standards and pull back from lending in 2022 and 2023. At the same time, credit unions and finance companies stepped in and filled this gap. In particular, independent finance companies experienced increases in originations and, as of the end of 2023, accounted for a greater share of originations. These companies are not affiliated with a car manufacturer and tend to focus on riskier segments of the population, as evidenced by both higher loan-to-value ratios and higher delinquencies. As a result, their loans tend to have higher delinquencies and their LTV ratios, on average, are currently about 40 percentage points higher than those of banks.” #Boom #perShaggyItwasntme #regulatoryperimetermuch? https://lnkd.in/eH3ENCKJ

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The U.S. Small Business Administration (SBA) has recognised that its previous working capital line product was ineffective for lenders. Now, the SBA is launching a new 3-year Working Capital Pilot (WCP) featuring a restructured line of credit for small businesses, offering greater flexibility than traditional term loans. The launch is set for later this year. #assetbasedlengin #assetbasedfinance #abl #smefinance #workingcapital #bcrnews

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What's the best financing option? One that's easy to get and easy to repay. When it comes to arranging financing, SBA loans are undoubtedly the most famous option. And rightly so. Given its focus on small businesses and its scale. In 2023, the SBA provided $27.5 billion through more than 57,300 7(a) loans to small businesses. While SBA loans could be a good option to secure capital, there are potential issues to be aware of: ➡ Slow Approval Process ➡ Stringent Eligibility and Documentation ➡ Collateral Requirements ➡ Complex Application Process ➡ Inflexible Terms ➡ Personal Liability Financial alternatives exist, but a lack of knowledge prevents many from choosing the path of least resistance. With OppZo, SMB govcons can secure up to $3M of working capital. Here's how OppZo is different: ✅ No personal guarantees required ✅ Streamlined process ✅ Clear and consistent communication ✅ Transparent terms ✅ No fees or credit check before pre-qualification ✅ Funds transferred within 24 hours post-approval Learn more about Oppzo's Registration and Application Process here: https://lnkd.in/ez9xJ89t What financing options have you considered apart from SBA loans? Share your experience 👇 . . . Wondering if you'd be eligible to access financing through OppZo? DM me, and I'll be happy to help! ___ #govcon #SMBGovernmentContractors #Innovation #entrepreneurship 🔔 OppZo - democratizing access to affordable working capital for GovCons. Get in touch if you're looking for working capital: https://lnkd.in/edmdGwUX.

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Mortgage Applications Decreased 21.9% From Two Weeks Earlier, Purchase Applications Down 48% From Two Weeks Earlier https://lnkd.in/gMQnp4az Chuck Cowan Brad Moseley #mortgage

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As CFPB pushes towards open banking and consumer data access, credit unions face a pivotal moment in member service evolution. In our CUCopilot Session 11, our founder Saroop Bharwani explained 𝗵𝗼𝘄 𝘃𝗼𝗶𝗰𝗲 𝗮𝗴𝗲𝗻𝘁𝘀 𝘄𝗶𝗹𝗹 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺 𝗰𝗿𝗲𝗱𝗶𝘁 𝘂𝗻𝗶𝗼𝗻 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗿𝗼𝗺 𝘁𝗿𝗮𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗩𝗥 𝘀𝘆𝘀𝘁𝗲𝗺𝘀 𝘁𝗼 𝗼𝗿𝗴𝗮𝗻𝗶𝗰, 𝗵𝘂𝗺𝗮𝗻-𝗹𝗶𝗸𝗲 𝗰𝗼𝗻𝘃𝗲𝗿𝘀𝗮𝘁𝗶𝗼𝗻𝘀 𝘁𝗵𝗮𝘁 𝗵𝗮𝗽𝗽𝗲𝗻 𝗶𝗻 𝗿𝗲𝗮𝗹-𝘁𝗶𝗺𝗲. At Senso, we're committed to elevating credit unions in this new era: • 𝗠𝗲𝗺𝗯𝗲𝗿-𝗙𝗶𝗿𝘀𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆: Building AI solutions for what matters most - exceptional member experience • 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 𝗮𝘁 𝗦𝗰𝗮𝗹𝗲: Auto-categorizing interactions across 150+ credit-union-centred categories to ensure consistent, compliant service delivery • 𝗙𝘂𝘁𝘂𝗿𝗲-𝗥𝗲𝗮𝗱𝘆 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀: Moving beyond one-to-one MSR conversations to more intelligent, multi-channel member support without sacrificing personal touch As Saroop shared, '𝗪𝗲'𝗿𝗲 𝗹𝗶𝘃𝗶𝗻𝗴 𝗶𝗻 𝗲𝘅𝗽𝗼𝗻𝗲𝗻𝘁𝗶𝗮𝗹 𝘁𝗶𝗺𝗲𝘀 - 𝗮𝗻𝗱 𝗰𝗿𝗲𝗱𝗶𝘁 𝘂𝗻𝗶𝗼𝗻𝘀 𝗻𝗲𝗲𝗱 𝘁𝗼 𝘀𝘁𝗮𝘆 𝗮𝘁 𝘁𝗵𝗲 𝗰𝘂𝘁𝘁𝗶𝗻𝗴 𝗲𝗱𝗴𝗲 𝘄𝗵𝗶𝗹𝗲 𝗺𝗮𝗶𝗻𝘁𝗮𝗶𝗻𝗶𝗻𝗴 𝘁𝗵𝗲𝗶𝗿 𝗰𝗼𝗿𝗲 𝘃𝗮𝗹𝘂𝗲𝘀 𝗼𝗳 𝗺𝗲𝗺𝗯𝗲𝗿 𝘀𝗲𝗿𝘃𝗶𝗰𝗲.' Want to view Saroop's full update on how we’re helping credit unions thrive in this new regulatory, technological landscape? Leave a comment below 😊

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Unlocking Growth: How SBA Loans Can Propel Your Business Forward? At ECP Business Capital, we understand that growth is essential for small businesses. That’s why we offer SBA loans, designed to provide flexible and affordable financing options tailored to your needs. Whether you’re looking to expand your operations, invest in new technology, or hire more staff, an SBA loan could be the key to unlocking your business’s potential. Even if you have bad credit or operate in a high-risk industry, we work tirelessly to find the right solution for you. Let us help you grow and keep our nation’s economy alive. Learn More: ecplending.com #SmallBusinessGrowth #SBALoans #BusinessExpansion #ECPBusinessCapital #BusinessFinancing #BadCreditLoans #EntrepreneurLife #FinancialSolutions

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For those of us waiting for the release of 1033, it appears we have some insight over what will be included. While the Consumer Financial Protection Bureau (CFPB) plans to release its final open banking rule today, details were provided in advance to American Banker. Here's a summary: The CFPB is releasing its final open banking rule, expanding its scope to include payment apps and other financial products. The rule, named after Section 1033 of Dodd-Frank, requires banks to safely share financial data on various accounts and products, including Apple Pay, Google Pay, PayPal, Zelle, and Venmo. It aims to increase competition, enhance consumer choice, and establish strong data security and privacy standards. Key aspects of the rule include prohibiting data harvesting, allowing some secondary uses of consumer-authorized data, and extending the compliance period for large banks to April 1, 2026. The CFPB emphasizes that consumers have the right to know what data is collected, where it's stored, with whom it's shared, and to revoke access at any time. The rule is expected to encourage the adoption of secure APIs and potentially reshape how consumers use their personal financial data. My thoughts: This final open banking rule will likely significantly impact banks by requiring them to safely share a broader range of financial data, including payment app information, with third parties. While this may increase competition and consumer choice, it also presents challenges for banks in terms of data security, potential liability for third-party breaches, and the need to implement costly oversight measures for Fintech companies accessing consumer data. If banks are to stay ahead of the curve, banks should focus on partnering with those Fintechs that have robust API infrastructures while enhancing their data security measures. Additionally, banks could consider partnering with Fintech companies to create innovative products and services that leverage open banking capabilities, potentially turning this regulatory challenge into a competitive advantage. #banking #1033 #CFPB #bankingindustry #payments #creditunions #fintech #financialistitutions

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Since their introduction in 1972, ACH payments have grown substantially by value and volume, with the ACH Network processing 30 billion payments valued at $76.7 trillion in 2022, an increase of 3% and 5.6% respectively over 2021. This substantial growth has also garnered unwanted attention from fraudsters. In our new blog we discuss valuable insights including how: 🔑 Visibility into both sides of an ACH payment is key to reducing false positives and detecting true fraud more effectively.   ☁️ A consortium approach enables institutions to identify patterns of criminal activity, evolving trends, and financial crime risks. ✅ How the new NACHA rules emphasize a whole-of-transaction approach to fraud prevention. https://buff.ly/3TJDJIr

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To the likely surprise of providers of buy now, pay later (BNPL) financing, the #CFPB recently issued an interpretative rule stating that BNPL products are actually "credit cards" under the Truth in Lending Act and BNPL providers are "card issuers" and therefore "creditors" under, and subject to, Regulation Z. Scott Pearson, Bryan Schneider and Eric Knight explain the significance here:

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If you’ve ever wondered why SBA Lenders don’t refinance MCAs, you’re not alone. Here's the truth: 1. Legal Ambiguity – MCAs blur the lines between sales and loans, making them tricky for SBA refinancing. 2. High Costs – APRs can exceed 80% raising red flags that don't fit SBA refinance guidelines. 3. Complex Structure – MCAs lack the usual features of standard loans, complicating any SBA refinance process. It’s a risky territory that SBA Lenders prefer to steer clear of. But don’t worry—if you’re looking to secure more stable financing, I’ve got your back!

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