Kevin Kim hosts a live episode of Lender Lounge from the Captivate Conference at the Encore Hotel in Las Vegas. Joining him are industry veterans Evan Stone, CEO of Champions Funding and Chairman of Community Savings, Dustin Wells, President of Dominion Financial Services Wholesale, and Dave Orloff, CEO of American Heritage Lending. This discussion explores the evolving landscape of private lending, particularly the intersections of consumer and business-purpose lending. The panelists dive into their experiences transitioning from consumer to business-purpose lending, the distinct challenges of each, and the nuances of RTL and DSCR products. The conversation also highlights the importance of understanding credit risk, borrower psychology, and the growing role of brokers in non-agency lending. The episode provides valuable insights into market trends, capital strategies, and the future of private lending in a rapidly changing economic environment.

Bullet Points:

[00:00:57] Kevin introduces the Captivate Conference and the episode's panel.

[00:03:02] Discussion on the difference between consumer and business-purpose lending.

[00:05:03] Panelists share their preferences between consumer and BPL.

[00:09:01] The evolution of liquidity and secondary markets in BPL since 2018.

[00:12:03] Dominion's unique approach to RTL and partnership with life insurance companies.

[00:16:05] The role of banks in BPL and managing liquidity through term financing.

[00:20:02] Initial reactions of consumer lenders entering BPL and adapting to its unique challenges.

[00:25:04] The critical role of understanding credit risk and the differences in underwriting BPL versus consumer loans.

[00:33:07] Exploring borrower profiles and their impact on RTL underwriting decisions.

[00:39:10] DSCR as a growing product category and its current market conditions.

[00:45:12] The psychology of borrowers and the impact of rate fluctuations on market behavior.

[00:50:06] Discussion on the potential long-term stability of rates and borrower expectations.

[00:55:05] Concerns about commoditization and standardization in the RTL sector.

[01:00:09] Champions Funding's focus on staying specialized and cautious about market overextension.

[01:05:07] Insights into the factors that contribute to the success or failure of consumer shops entering the BPL space.

Links:

Learn more about Champions Funding at https://www.champstpo.com/

Learn more about Dominion Financial Services at https://www.dominionfinancialservices.com

Learn more about American Heritage Lending at https://ahlend.com/

Learn more about Geraci Law Firm at https://www.geracilawfirm.com

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