Small Business Funding Event Coming to Seattle

1236729_558062194229624_1577621121_nHey RCG Community!  I’m super-excited that I’ll be returning to Seattle for an Access to Capital event that Dun & Bradstreet Credibility is hosting this Nov 12. The event is all about helping small businesses get the money they need to grow their businesses.

We’ve been running these events all over the country (Los Angeles, Chicago, Atlanta) and they’ve been crazy successful events in terms of helping get small businesses funded… (No kidding, tens of millions of dollars of funding have come out of our first three events!)

544538_557687417600435_2047497257_nI realize that this isn’t a “real estate” specific event, but from my experience a lot of people in the real estate community are looking for funding and/or know business owners who would love to be able to fund their growth. Specifically, I’ve met and heard stories from many real estate investors at previous events who are looking for innovative ways to fund the purchase of investment properties… and know that most Realtors are active in their local business communities.

At the one-day event, we will offer two main things:

  • Access to Lenders: At previous events we’ve had dozens of representatives (typically 50+ people) representing over 20 different lending organizations, and I’m sure we’ll have a similar turn out in Seattle.   Best part, before the event we will work with attendees to schedule one-on-one meetings with their choice of lenders.
  • Funding Education: We’ll have panels, spotlights and speakers that will get down-and-dirty and show you how to prepare your business to get funded.

1229872_557686864267157_1862403206_nIt’s worth noting that the lenders who show up represent the full-spectrum of options for small business owners.  In the past, we’ve had representatives from large banks (Wells, BofA, etc.), representatives from community banks, representatives from alternative lenders, crowdfunding organizations, venture capitalists and more.  Most people are blown away by the number of options that they have!

Obviously, I’m hoping that the RCG community can represent well at the event, so I’m giving you’all access to a Super-Early Bird ticket!

A bit of serendipity…

At our Chicago event, I made all kinds of friends and have loved seeing multiple companies take off.  But one guy in particular has been hitting home runs left-and-right with his BBQ’d Productions company.  He recently announced that through connections he made at our event, he’s not only gone on to get funding through an innovative small business program offered by Sam Adams:

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But it gets better!  His business is even getting featured on an upcoming bottle of Sam Adams!

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Anyway, I tell this story, not because it’s a “success” story from a previous event, but rather because I think it highlights the importance of taking chances for entrepreneurs.  Kris took a chance on the event… met up with some great people… networked, networked, networked… and is making great things happen!  I’ve become a firm believer that one of the keys to turning the economy around is helping more of these innovative entrepreneurs and I feel super fortunate that D&B Credibility is organizing these funding events to do just that!

1229993_560128970689613_980300401_nNow’s your chance to take a chance!

Sign up for a ticket while they’re discounted on top of Super-Early Bird Specials! (note: we haven’t started to do any real marketing around this event yet… but it will come and it will be big!  I’m only pushing this out early because they let me and I love that I can offer something great to the RCG community!)

And of course, let me know if you have any questions!


Fannie Mae adds Speed Bump Prior to Funding Your Mortgage

photo compliments of veggiefrog via Flickr

photo compliments of veggiefrog via Flickr

Effective on loan applications taken on June 1, 2010 or later, Fannie Mae is requiring lenders to confirm that undisclosed liabilities are not present prior to funding a transaction as part of their Loan Quality Initiative (LQI).   Currently a credit report is pulled and is valid for a specific amount of time–as long as the transaction closes prior to the expiration of the credit report, it typically is not repulled.   Fannie Mae is now requiring the lender to make sure that there is no new or undisclosed credit at closing.   Relying on the original credit report pulled at application is no longer good enough.

Fannie Mae’s FAQs suggest these tips for lenders to help confirm there are no undisclosed liabilities:

  • Retrieving a refreshed credit report just prior to the closing date and reviewing it for additional credit lines.
  • Utilizing new vendor services to provide borrower credit report monitoring services between the time of loan application and closing.
  • Direct verification with a creditor that is listed on the credit report under recent inquiries to determine whether a prospective borrower did in fact obtain credit or enter into a financial arrangement that is not disclosed on the loan application.
  • Running a Mortgage Electronic Registration System (MERS) report to determine if the borrower has another mortgage that is being established simultaneously.

This means days before funding a Fannie Mae loan, the transactions are subject to being re-underwritten and if the borrower is “borderline” (which is a 620 mid-credit score in today’s climate and/or higher debt-to-income ratio) or decides to purchase their appliances for their new home before closing…they could potentially “kill” their deal and find themselves being “unapproved”.

Fannie Mae states that loans should be resubmitted to underwriting if:

  • additional debts have been incurred which would increase the debt-to-income ratios
  • if new derogatory information is detected
  • if the credit score has materially changed

Borrowers should understand that the loan application is intended to represent their financial scenario and whenever (even before LQI) changes are made to their application, their mortgage originator needs to know.   This is not new.   When changes occur and a borrower is aware (such as taking on more debt or changing their employment) and they hope they “won’t get caught” before closing, they’re committing fraud.   This is what Fannie Mae is trying to prevent with LQI.

Borrowers with conventional financing need to be extra mindful of LQI.   Using a credit card to fill your SUV full of gas could potentially ding your score if you’ve carry a balance of 30% or more of the available credit limit.   Even closing a credit card during or just before a transaction could drop your score low enough to where the lender may have to reconsider your loan approval AT CLOSING.

For mortgage companies and banks (anyone who sells loans to Fannie Mae)  it boils down to having to refresh, repull or face re-purchasing the loan if changes to the credit report are found between application and funding.    Fannie Mae is not specifically requiring credit reports be repulled prior to funding–they are holding the lender responsible for changes if they don’t.

Borrowers, real estate agents and originators need to be prepared for potential delays in closing, repricing of their mortgage loan (which would trigger another delay due to MDIA) or the loan potentially being denied.   It’s more important than ever that borrowers work closely with a qualified mortgage professional who can help guide them through the process.