Lending Philosophy

Quickloans embraces a "common-sense" approach to underwriting.

We are a true portfolio "collateral" or "asset-based" lender with over two decades of experience to close difficult loans. Our focus is on the property that a borrower owns," rather than on what a borrower "owes." We provide financing to borrowers with A through F credit. We have the flexibility to write loans to people with higher risks of default, unverified sources of income, high debt ratios, or simply borrowers needing cash out quickly and looking for someone to turn on a dime.

When underwriting "collateral-based" loans, we focus on the following:

1) In the event of default, what is the likelihood of loss? To answer this question we evaluate several factors, including:

a. How solid is the appraisal? Is the subject property compared to similar properties closely located or are you left wondering what the real value is? Is the property at the low or high end of the predominant neighborhood value range: Is this what the property would sell for today?

b. What condition is the property in? Does it show pride of ownership? Does it have a lot of deferred maintenance requiring substantial investment to market the property for resale?

c. How marketable is the property? Will it take an unusually long amount of time to sell it due to location, unique characteristics, price range, or other factors?

d. What is the equity margin in the property? Junior loans, such as a 2nd and 3rd may necessitate a more conservative "loan-to-value" (LTV). Senior loan balance, rate and term also factor in determining overall LTV limit.

2) What is the perceived likelihood that the borrower will default? To answer this question, we evaluate three primary factors: the borrower's past or present credit situation ("willingness to pay"); extent of income verification, stability of income, and resulting debt ratio ("ability to pay"); and the dollar/percentage change in the borrower's payment.

a. Credit History - Reasons for any derogatory credit situation. Does the credit explanation make sense? Have the factors that contributed to any derogatory credit been resolved? Our reason for providing more aggressive lending must be supported by facts verifying that the issues contributing to prior credit concerns have since dissipated or will vanish as a result of the loan.

b. Income - Quickloans has no debt ratio requirements. Unlike conventional lenders whose focus is on borrower's credit and ability to repay, our primary concern is equity. Determining how much equity is needed partly depends on the following three factors: (1) The extent to which a borrower's income is verified; (2) The stability or seasoning of borrower's income; (3) The relationship of such income level to his/her current and future debts. One example why we do not limit debt-to-income ratios is in situations in which an applicant has historically paid his/her mortgage and other major creditors as agreed and our loan will create substantial monthly savings for that borrower. In such instances, we may permit a higher debt ratio than typical industry guidelines under the premise that the borrower has always found a way to pay.

Does the loan make sense? The loan must always accomplish an objective for the borrower. In other words, Quickloans must believe the borrower is benefiting from the loan - whether it is in terms of payment savings, cash-out for specific needs or to save their home from foreclosure. It is not our intent to grant credit intentionally knowing that we will not be repaid or that we are not improving the borrower's situation.

c. Higher Payments - If an applicant has not shown the ability to make their present mortgage payment and a new loan would result in a higher monthly obligation there must be appropriate justification or compensating factors for granting the new loan. These borrowers must have an exit strategy. Perhaps they are temporarily unemployed and expect to be working within a reasonable time frame. Sometimes emergency situations arise and people find themselves financially strapped and unable to make payments on existing loans. Often times the sudden financial difficulty is short-lived and a new loan, despite higher payments, provides them with an opportunity to get back on their feet.