Lenders Partner with Proprietary Technologies for Borrower's Benefit

I've been working with a few CEOs who have recently partnered with a technology they feel is going to be a game changer in 2021 and beyond.

Formulating a comprehensive strategy for upcoming delinquencies and loan defaults, lenders who are ahead of the curve are coming on board with advanced systems that help not only improve the lender's book of business but also the consumer's end result of improved credit, stronger pay history, loyalty, referrals and massive savings of time and money.

The largest lender concerns are with pandemic risk and defaults, along with business resilience and adaptability, according to a Wolters Kluwer survey.  While distressed mortgage rates crept down overall, serious delinquencies still tripled year-ago rates in September, according to CoreLogic. 

Mortgage insurers will feel the pinch from long forbearance timelines. Lower cure rates and possible rises in foreclosures and claims could force these companies to raise capital next year, Fitch Ratings said.

 I got thinking of the tens of thousands of lenders who have yet to hear of the consumer focused programs, and how those who are ahead of the curve are busy implementing technologies to help their clients get into a better position. Their goal is to improve retention of existing clients and win over new ones through their consumer-focused marketing campaigns in 2021. 

Having a strategic market advantage by offering a financial gps technology that in a live-time interactive format shows consumers how to pay their loans off sooner, save tens to hundreds of thousands of dollars without refinancing or restructuring, and make better money management decisions with forecasting capabilities will result in a win win for both the lender and ultimately the consumer.

This debt to wealth shift is more critical now than ever. In fact Americans are already paying down credit card balances, which have decreased by 9% since this time last year. While interest earnings for lenders is important, there is a tipping point of no return when all of it together totals on average an additional 50% or higher than the amount borrowed. This puts everyone in jeopardy. When we offer ways to better balance this leverage, the entire system operates more efficiently.

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Here is a recent discussion and talking points I had with a Loan Company CEO:

"We are known as one of the best lenders in our region because we hone in on exactly what our clients want. our attention to detail and ability to get things done and done fast. 

It's our client focus that led us to finding a way to help them not only fund their properties or business needs, but to also help them get ahead with paying this debt in 1/2 to 1/3 of the time, as this particular program's focus has the borrower better vested due to a faster equity acceleration in their property, it lowers theirs and our risk of default or delinquency, and gives us a strategic product advantage not only for our clients but also other lender's clients as well. 

We can now offer another option vs refinancing or restructuring of their debt and without changing their current lifestyle or budget or any credit score, LTV or DTI restrictions. And for a new loan, we can show them how to take a 30 year and have it paid off in 1/2 to 1/3 of the time. Not only this, but we now open the door for non mortgage debt including auto and business loans, student loans and credit card debt. Our realtor partners are also joining us in this venture because we are making the way for a market of new homeowners with this program.

This is an important focus for us with $27 trillion debt of national debt, student loan debt of $1.6 trillion, mortgage debt of $9.9 trillion and auto and credit card debt of $1.2 trillion and $756 billion, respectively. As we move into 2021, higher delinquencies, foreclosures and losses will have to be addressed in paradigm shifting ways that will help the borrower and lenders overcome these challenges."

To spread the news, we're offering everyone a complimentary savings analysis and report. This is for anyone who has a mortgage on their home or who is seeking a home loan and would like to see what results are possible. Since we are also now able to expand our mortgage business beyond just mortgage debt, we are expecting a banner year in 2021. 

The concept of 30 year mortgages, 7 year auto loans, high rate credit card balances, and lifetime student loan debt, all costing an additional interest volume of 50% or more than what was borrowed, is no longer compatible with today's possibilities with technology. This is very important for everyone to see because the results are mind-blowing,

Ultimately it's about time we do the right thing for the consumer and not always with a focus on the lender's bottom line. We can do a better more balanced job at both.

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To learn more about what can be offered to your clients, we are happy to set up a discovery zoom with you and our board advisers and partners. Reach out to discuss. Happy Holidays and here's to an incredible year of the consumer in 2021 and beyond. 

With love and light, Belinda Foster

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