Loan Officer Leadership Podcast

042: More Than Credit - Carl Stanley

December 11, 2019 Steve Kyles
Loan Officer Leadership Podcast
042: More Than Credit - Carl Stanley
Loan Officer Leadership Podcast
042: More Than Credit - Carl Stanley
Dec 11, 2019
Steve Kyles

Check out this week's episode to find out how you can help your clients with credit! Carl Stanley at Rising Point Solutions give us resources to do so in this episode. Join our facebook group, Loan officer Leadership Group and Make sure to SHARE and SUBSCRIBE to the weekly podcast.

Show Notes Transcript


spk_0:   0:02
Hey, guys, Welcome back to the loan officer Leadership podcast. I'm your host, Steve Kyle's and I get the privilege of introducing a guest back to the podcast who was with us about a month ago on episode number 38. My good friend Carl Stanley. I'm excited. Come on, man. With rising point solution. Lad to be back. Hey, I gotta tell you, you know what's in this community? You've gotta have strategic partners. And here's what we've learned. Life moves at the speed of relationships. That's new relationships, old relationships. And I've got to tell you, I love what Carl's doing over at rising Point solutions. And I only bring people on the podcast that I personally know, like in trust. I use him. I used their business to help grow my originating business. Which car? We're having a record year this year. Um, and so that's a lot of fun. And you guys are a big part of it. Were able to refer people strategically, knowing that you're going to take great care of them. And so, uh, but today, what we're going to talk about is Maur than credit, right? What is that? Come bring to my

spk_1:   1:07
more well, you know, hopefully we can be a strategic partner

spk_0:   1:10
for for

spk_1:   1:11
a lot of our mortgage partners. In a way that's more than just credit repair, right? I mean, that's that's our core business. But, you know, I'm always of the philosophy that if we can help our partners grow and expand their business, then there's a lot more opportunity for both of us to work together.

spk_0:   1:24
Okay? And I love that. And for our new listeners are the ones who didn't listen to the episode 38. What I would encourage is this. You gotta have a credit repair strategic partner, somebody that you can trust because what I found before I started working with rising point is most of them were crooks, or you just You're always it felt sticky. So you guys are a great solution for credit, not just repair, but I would say more like guidance, Um, that you're really helping people on the journey to get to a point where they can achieve the dream of homeownership when we love that man. But today we wanted to talk about more than credit. So those are things, you know, You and I were talking. Um, I want listeners to know not only what rising point does, but I want to dive a little bit deeper into things like your student loans solutions to. All right, It's a little bit about

spk_1:   2:11
Yeah, we talked briefly about that on the last episode. You know, student loans or the next big American problem.

spk_0:   2:17
Well, 36% of every single home purchase coral was a millennial, right? And the challenges. And I don't know if you've seen the stats, but credit scores for millennials air in the low six hundreds on average. Now here's the deal. You have your aspires that you have. There's two different groups of the Millennials. But what's interesting is that make a lot of money. But there's credit scores are not really where they should be based on what they're making. And I think a big hole in this whole thing are the student loans. All right, they're coming out of school with There are people We've looked at $100,000 in student loan debt.

spk_1:   2:50
That's Yeah. Well,

spk_0:   2:51
that's great.

spk_1:   2:53
That could be considered on the low end. I mean, we we see, uh, we see consumers millennials every single day every day, with 200 to

spk_0:   3:02
2151 40.

spk_1:   3:05
And the reality is it has the potential to delay homeownership for a generation of people. And the reason is they've got to qualify for two mortgages. The one the one that's on their report already their student loans crazy and then the house they're trying to buy.

spk_0:   3:20
Well, it's almost shocking because you see the payments and you realize that, you know, even if the average income of millennials in the $70,000 range, you've got to make that much just to pay back the student loan, which is being at such a reduced, it's almost like it. A deferred amount. You'll see 100,000 or student loan at, like $400 a month, and you're like they'll be 70 when they pay it back.

spk_1:   3:42
Well, yeah, it's It's a real sad situation. We're about $1.56 trillion in student loan debt. 10 years ago we were 1/6 of that, about 250 billion and well, it increases every year exponentially, and the reality is in the next couple of years, about half of all student loan holders will not be able to make their payments and even the ones that can or not gonna be able to buy a house and a lot of instances because they're kicked out, d T I

spk_0:   4:09
wise. So how does a company like Rising Point Solutions help with student loans?

spk_1:   4:14
Well, we got a couple solutions, and we're not gonna be able to help every single person. But those bars that either a, are in default and wage garnishment and need a rehab program to get them back on track and get their credit rehabbed and get cleared from capers and be able to become a viable homeowner. We can assist with that. But what we're really helping our mortgage partners in the last year or two is is we can help with student loans where you have to take 1%. So you have to take 1% on an F H A loan. You say a bar has $120,000 in student loans. You have to take $1200 payment. That's tough, because that's like a

spk_0:   4:49
house payment already. Well, sometimes that kills the deal.

spk_1:   4:52
It kills the deal completely, or it severely effects what they concluded. By so and so any time you have a student loan bar who you have to take 1% and you can't get across the finish line because the d. T I. That's where we help. In most instances, we can help the consumer restructure those loans in away and get a fully advertised payment about 10.6% which shaves off about $400 per every 1000 that you have to count towards d. T. I. And then we can get a mortgage verification letter from the servicer and that will either save the deal hopefully or increase the transaction value that might qualify for

spk_0:   5:27
now. Is that a long term solution?

spk_1:   5:29
No. It's a short term solution to get them into the home. Really, At the end of the day, what the mortgage industry is trying to do is underwrite student loan bars to the worst case scenario. In the worst case scenario is 1%. Yeah, all we're doing is showing them amore appealing worst case scenario because at the end of the day, most of these people are in deferment or income based programs anyway. They'll never take. They'll never pay 1% and the only way they would pay Maura's if they make more money. Yeah, So a lot of times will put the loans in the format that the lender needs to see to say, OK, this is our new worst case scenario because they're just going to go back in deferment or

spk_0:   6:07
find a way to

spk_1:   6:08
come, baby, Yeah, they're gonna want to make the lowest payment they could make, no matter what we have to do to qualify him to get in the house.

spk_0:   6:14
Hey, and I thought something was interesting earlier you were talking about, um even if a client comes in and they've had defaulted student loans or student loans that they've not paid on, there is a government program that allows them to reinstate that student loan, and after nine payments, they can actually, it'll clear out your late paste from previous delinquencies. Right? So talk about that. I had never heard that before,

spk_1:   6:41
and this is not a rising point thing. This is a This is a ah program that's available to any consumer that is in default or wage garnishment collections. They can contact the Department of Education

spk_0:   6:53
where they can contact you and you can hope for

spk_1:   6:55
their service or whoever they owe the money. But everybody in that arena will know of this particular program where they can contact us. Um, and so what'll happen is that we get on a rehab program. They'll make nine on time payments. Now, while they're making those nine on time payments, there is no new loan or positive history. The old previous collection is sitting there. Once they get to payment nine, then what will happen is they will remove all the previous negative, start a new loan with a new loan number and positive history for the last nine months. Um, and they'll clear them from capers, which is the key. They've got to be cleared from capers, obviously, before they can move forward with a mortgage

spk_0:   7:33
for sure. Well, that's a huge, you know, that was something that was new for me to hear, and I think that's a huge win for our mortgage partners and loan officers that are listening well.

spk_1:   7:41
The reality is that most people with student loans don't know what's available to them, whether it's forgiveness programs, income based rehab programs, servicers are not in the business of educating consumers. They're only in the business of collecting money. Oh, yeah, And so that's why we're valuable. Because we can steer the consumer in the right direction to the program. That's best for them. They love it, and it's not really a moneymaking thing for us. We don't you know, that's that is just a supplemental offering to help our mortars partners. You know, you have a solution. No issues with student loans.

spk_0:   8:12
That's huge. Hey, and one of things that I want you to do. Two for those of you are listening. Check it out in the Facebook group. Loan officer leadership, Facebook group. Inside the group, you're an active member there. And so I know you're posting content and share a bowl and help. Helpful resource is S O. I want to just remind everybody go to the Facebook group, get inside, have a conversation, Um, and that way we want to know what your credit questions are. So that car on his team can answer them as well inside the group.

spk_1:   8:42
Yeah, we want to be a valuable member of the community, and we want to be able to be beneficial to the other members who need assistance. And I think, you know, well, hopefully regularly post valuable content and stuff that the loan officers in there can repurpose with their clients or their marketing and and some interesting stuff.

spk_0:   9:00
Hey, I love that and talk about you. So a couple of other things Maur than credit repair. You guessed you c e training for companies in Texas,

spk_1:   9:08
right? Where, Ah, we're licensed by trek. Yeah, we have a couple different classes. We have a few different structures, including myself. License instructor. And again, this is something we do for our mortgage partners, right? I'm on our audience, really? Isn't the religious community that we teach realtors, um, as a value added benefit for a mortgage partners to help them grow their business. And and, uh, so oftentimes will go out with some of our mortgage partners in vital the Realtors in the area

spk_0:   9:35
to lunch and learns

spk_1:   9:36
to luncheon Lawrence. And they get, you know, they get two hours, they get two hours worth of credit towards their license each year. That's great. You know, we've had several 1000 realtors across over the years come through. It's called credit education for realtors. They love it. when they learn more about credit in an hour to they've known their entire

spk_0:   9:52
life and

spk_1:   9:53
often times they need it for theirselves personally, all right. And but it's just it's something of value that our mortgage partners can offer their realtors, and we'll deliver it for you. Um, and it's because we want to have a two way working relationship. I

spk_0:   10:06
love it. That's a huge resource. Okay, so tell us. Fun fact. What? Something find interesting. Maybe one of the craziest situation. I don't know. Tell us something fun. Something.

spk_1:   10:16
Uh well, I'll give you a couple student loan. Fun fact, although talk well, they're they're more scary than fine. Um, but yeah. I mean, we the federal government made $52 billion last year in profits on student loans. Um, and that is more than the most profitable company in the world. Exxon Mobil made $50 billion last year. That's

spk_0:   10:36
with D two billion.

spk_1:   10:38
And that's with 1/3 of all student loan holders in default or not paying. Wow. And yeah, and And another scary fact is especially in regards to student loans is that is that each graduating class has $2000 more on average student loan death in the previous graduating class. So in the last 10 years, the the average in amount of student loans exiting college now is $20,000 more than it was in 2009. Well, it's accelerating. Unfortunately. Wow, Um,

spk_0:   11:08
it's a broken system. It will. And it was interesting because we're talking to Eli earlier before the podcast. And one of things you got to do is we have to keep educating the consumer. That debt is bad, like all credit scores are. Is there monitoring the the amount of debt your capable of caring before you go into a late payment or default man? Consumers.

spk_1:   11:31
Consumers most often confused debt with credit, right? They It's not about how much debt you have on your credit. That's a good point. It's not about how much debt you have on your credit Portis about what percentage of debt are utilizing it's about. Are you making your payments on time? And people ask me all the time, Hey, why do I have to have debt to have good credit and you don't You have to have credit toe, have good

spk_0:   11:53
credit. It's all okay, you know it is. It's just going to play the game.

spk_1:   11:57
You gotta play the game,

spk_0:   11:58
play the game, and you get eso always love it. You gotta make more than you spent, right? It's more than you spend. Hopefully at the starting point. Yeah, man, you gotta You don't want to get to the end of the month and have more month, and you've got money. All right? When you do that, that's where you start seeing the terrible credit, man. Hey, will love having you here and just thankful that you stopped in to the studio to drop the podcast to any closing thoughts or anything else you would say to a loan officer who is looking for help around credit in growing their business. I just

spk_1:   12:28
like to say that, you know, as a company, we've been in business for 15 years, and our goal has always been ableto has always been to help our mortgage partners close more loans. I mean, that's the value in the partnership. Um, but, you know, tthe e end of the day. We don't wanna be known as the lead collector, right? We're not elite collector. Our job is to provide value to our mortars partners, you know, help them with education and resource is and and have a two way relationship. So we also do some loan officer trainings. And we also do some webinars that that, you know, that are out there that we advertised regularly. And I'm hopefully, some of the people on here may eventually here some of our webinars. But we're really, really into educating loan officers, so that there is knowledgeable about credit is possible.

spk_0:   13:15
Love that. How does somebody find your So you got a rising point solutions dot com. It's a great place to start.

spk_1:   13:21
Yeah. Rising point solutions dot com. I would encourage everybody to go there. And also, while you're there, make sure you check out the resource is Paige. Yeah, we have. Ah, we have rent reporting. We've got lines of credit, secured credit cards. We've got installment credit. We have all kinds of really neat credit building opportunities that you can refer your clients too, and they don't even have to be a customer. Is just a place that we collect. Resource is

spk_0:   13:45
Hey, I'd love for you to post some of that in the group as much as you know you guys post in there would love for you all to get more and more. Resource is that you can share with your clients because the more you know how to lead them. Well, the more your clients are gonna be ableto have a great home buying experience. But also make sure that your strategically partnered with the right people in Carl and his crew at Rising Point Solutions. They're the right people. We trust him. We hope you'll trust him. And, man appreciate you coming out on the podcast.

spk_1:   14:13
Yeah, anytime. Would love do it again.

spk_0:   14:15
Hey, And listen, as we're closing up the episode, I want to make sure you subscribe. If you're not already subscribed to the podcast when you hit subscribe. We released an episode every Thursday s O that have come out to you automatically if you like what you're hearing. If it's helpful to you share it with another loan officer, invite them to come be a part of our community. I'm asking you personally to join us as we continue to get better. The best place to do that right now is in the Facebook community group that we have. We want to hear what it is you're doing. Toe win your struggles, your successes. We're working hard to continue to put great content in there. You can always find resource. Is that loan officer leadership dot com. And with that hashtag grow and grind, be purposeful in your growth, relentless in your effort. Remember, anything more doing is worth doing badly just yet started so