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Verification & VL Rating

 

 
How our Lender Verification® and Rating help you save time, money and close more loans...
 
Understanding the difference between “verified” and “rated” will make a huge difference in knowing where to submit your loans, how to effectively use our service and ultimately close more loans.
 
VERIFIED= Lender has provided verifiable documentation, or information was found by VL showing proof of prior closed transactions sufficient to VL standards* Please see definitions for further information*
 
LOAN RATING= Our loan rating is based on a point scoring system taking into account such information as prior closings in the past 30 to 90 days out to 12 months, trending and consistancy patterns based on increase or decrease of funding activity, transparency in lenders sharing verifiable information and some other information.
 
Verified Lenders Inc. confirms lenders past performance in an effort to help the community as a whole avoid those who are just looking to steal up-front fees and valuable time. But knowing that a proposed lender or investor has made a verifiable loan in the past doesn’t tell you that much about today. If the question you have is simply whether or not they have closed a loan in the last year the answer is on the list, if they are verified by Verified Lenders® then we have found independently found that proof. Now the real question is will they fund YOUR loan, and here’s where loan ratings make all the difference. The Verified Lenders® rating system is designed to give credit where credit is due. Loan volume based on dollars lent does NOT drive a lenders rating and for good reason. Some lenders are designed to fund many loans where others are far more “boutique” in nature and close a significantly smaller amount of loans. In either case they can both be exceptionally good lenders for what they advertise they do. So long as each lender keeps funding the number of transactions at the same or better pace they will show a higher overall rating. Additionally they can add points by sharing additional closing data that we then verify to be accurate.  On the other hand if the lender slows its pace of lending and refuses to share information that will also be reflected in the score. Now here’s where the rating helps out in making some decisions about which direction you should head. If a lenders rating is low they may be having some potential issues, or maybe they are just being more conservative on those loans they are choosing to fund. If you have narrowed your choice of potential lenders down to a couple or a few it seems only logical that this additional information would be valuable in making the final decision. It allows you and your borrower, if you choose to share, the ability to have a bit more information when making an important choice that can cost you both time and money.

The information provided in this rating model is designed to help you make an educated decision on the best lender for your proposed loan and it’s important to keep a few things in mind. We include all types of financial companies from direct lenders, intermediary, correspondent even to brokers in our database. Additionally we cannot ever evaluate the number of submissions a company is receiving against the amount of loans they actually approve and then close/fund. Some lenders close only a few loans per year, and others close many. Our system is here to show that they ARE closing and it’s up to you to take from the information we gather and make an informed choice as to what may be the best fit for you or your client. Remember that information empowers you to ask specific questions. The answers to those questions will direct your loans accordingly and help to establish you as an educated deal maker instead of just another broker/borrower.
 
 
Some Factors to Consider
 
Increasing Lending Activity
A simple increase in funding alone is no guarantee that your loan will be funded by the lender but it greatly increases your odds. Beyond the obvious factors being looked at in loan approvals one should ask specifically why a lender has increased their activity. It only makes sense to ask more specific questions, you may find information in the answer that helps you better understand what that lenders wants to see.
 
Decreasing Lending Activity
If a lender has decreased its loan volume this doesn’t necessarily mean they are in trouble or will not approve your loan, in fact there may be good reason to have done so. Economic factors specific to property type, location or in some cases portfolio diversification might be driving these decisions. Some lenders are only allowed a certain percentage of the overall available capital to be placed on just office condo’s, raw land etc. We have found that its valuable to be able to speak directly with the lender about WHY they had a slow down, and why they may still have interest in your loan request.
 
Timing
All lenders work on a balance of flow. Depending on the way they raise capital some may only see new funds quarterly where as others may get funds monthly. Ask any company President/CEO and you will see that this is a major factor in deal flow and loan approvals. Knowing and understanding the flow of capital into the company you’re choosing to work with will substantially increase the odds of you developing a closer relationship with them and funding more loans.
 
Transparency
We believe that those willing to share information, positive or not deserve credit for doing so. If a lender has a low loan rating but is willing to be transparent that should stand out, they probably have a good reason. By being transparent with us they have openly shared information that we cross referenced to verify for accuracy. This is the highest standard of being upfront and honest in a marketplace that needs it.