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March 26, 2001
Headlines: "Went to Kansas City"---United Association of Equipment Leasing Funding Symposium SunTrust Credit Automates Small Business Lending with eCredit.com
www.sex.com
( nothing to do with
the leasing industry!!!! ) Opportunity for Leasing Companies to Grow---- FICO Scores---Archie Julian Willis Lease Finance Sets Quarterly Record With $88 Million in Additions to Lease Portfolio
Extra--- New Release: DUIT!Broker 3.0 is designed for brokers and funding sources Shepard Says, "Touch Your Mouth, and Sell Your Stock, Buy Bonds." Used Equipment---We Get Calls----Why??? Special Report/This Friday " Why eLease Companies are Failing? " Part I all press releases have ############ as header and bottom border ---------------------------------------------------------------------------------------------- PinnUSA Leasing ( Mortgage/Leasing Fraud Charges Probed: A federal judge appointed a special master to investigate government charges that Carlsbad-based PinnFund USA Inc. perpetrated one of the largest Mortgage frauds in recent years. Securities and Exchange Commission officials say Chief Executive Michael J. Fanghella used $107 million in investor funds to pay for a lavish lifestyle that included $10 million in gifts for his porn actress girlfriend. Regulators accuse Fanghella and associate James L. Hillman of Oakland of issuing phony accounting statements to disguise the transfer, as well as $95 million in business losses. The SEC wanted the PinnFund and related funding entities such as PinnLeasing shut down, but the judge's order allows it to continue operating pending the special master's findings.) "Too Good to Be True" A few years back we were approached by a broker to lease $250,000-300,000 of PinnFund's new office furniture and computers, etc. for the opening of their Chicago office. The financial's looked fine, but there was hesitancy on our part because they did sub-prime mortgages, and we were concerned if they'd be able to continue to sell off their sub-prime paper [this was just after the Mercury Finance (sub prime auto paper) thing unraveled (Mercury Finance was cooking the books) in the Chicago area]. The real kicker was the transaction was submitted with full financial disclosure and audited statements etc., and the all-in yield on the transaction was in excess of 20%. So we reasoned they were not very good business people if they were willing to pay 20% with the strength of their financial's or someone was asleep at the switch (management had no financial controls if they were willing to pay those rates that the broker negotiated). So if it walks like a duck and quacks like a duck, then it's a duck, or if it's too good to be true, then it is. It just seemed like one of those credits where one says to himself, "This is a house of cards". It looks like we dodged a nice size bullet. Thanks for the updates. Gary G. Trebels, CLP Vice President IFC Credit Corporation GTREBELS@IFCCREDIT.COM ======================================================= United Capital Kudos to Kevin Pane of C2 Capital for actually having the guts to tell it like it is about United's business practices. (http://www.leasingnews.org/archives/March01/3-22-01.htm) This
is how we can avoid the crooks
like United. If I see anonymous I disregard the Michael Duhamel Zaxon Entreprises, Inc. 110 Country Club Dr. Suite 4 Incline Village, NV. 89451 775-832-8279 775-832-8278 www.zaxon.com ---------------------------------------------------------------------------------------- "Went to Kansas City...." I attended the UAEL conference in Kansas City Friday. Attendance was not large but the important thing for me was hearing from Chuck Brazier (UAEL president) and Bob Fisher (Vice President) about the changes they are making at UAEL. I had previously decided not to renew our membership this year because of shortcomings that I'd seen in recent years with the association. I'm so very impressed with their game plan that we're renewing. I think that the industry needs the UAEL and I'm excited for its future. Kevin F. Clune kclune@clune.net Clune Equipment Leasing L.C. ---------------------------------------------------------------------------------------- ########################################################## SunTrust
Credit Automates Small Business
Lending with eCredit.com; Nationwide
Rapid Credit Decisions Using Highly-Configurable eCredit.com Technology
DEDHAM,
Mass. & LITTLE ROCK, Ark.--(BUSINESS
WIRE)--March 26, 2001-- Credit
Corp. today announced that SunTrust
Credit is `live' with eCredit.com
credit software for automated approval of small business financing and revolving lines of credit. SunTrust Credit, a commercial specialty finance company, is a wholly-owned subsidiary of SunTrust
Banks, Inc., the ninth largest
commercial banking organization
in the U.S., Using eCredit.com technology, SunTrust Credit receives applications for business financing through its various sales channels. Transactions up to $75,000 are automatically processed by eCredit.com software to determine in seconds whether credit should be granted, referencing outside information sources and using scorecards customized by SunTrust Credit to reflect the company's risk tolerance. This type of credit decision has traditionally taken days to manually process. Automation of the credit decision not only provides speedier, consistent results, but also frees credit analysts to focus on difficult or higher-value transactions, while the resulting aggregated data allows SunTrust Credit to identify and target its most profitable customers. "In these volatile economic times, every financial institution needs the flexibility and processing power to closely manage its credit policy. We chose eCredit.com because its technology allows us maximum control of the credit decision process with greatly improved efficiency," said Scott Hastings, SunTrust Credit president and chief operating officer. "In essence, eCredit.com technology allows us to perform our usual thorough credit decision analysis, but in a fraction of the time and with more consistency across our business." With eCredit.com software, SunTrust Credit can process applications directly from the desktop, whether entered by credit analysts or loan officers. Also, using the Internet for direct applications not only eliminates errors and speeds processing, but also helps SunTrust Credit accommodate the growing number of small businesses leveraging the Internet. According to a recent report by analyst firm International Data Corp., the percentage of small businesses accessing the Internet is expected to climb to over 70% by 2003. According to Peter McKay, president at eCredit.com, "More and more, financial institutions are recognizing the benefits of credit decision automation for credit process efficiencies and risk management.
Adding a leader like SunTrust
Credit as an eCredit.com customer
affirms our eCredit.com decision solutions enable credit-granting organizations to automate their traditional credit and underwriting processes, pro actively manage risk and speed time-to-market. By consolidating customer information in a single repository, eCredit.com helps credit-granting organizations to qualify, acquire and retain customers and pro actively manage credit risk. eCredit.com decision solutions also provide a flexible platform for managing multiple score cards, consolidating existing legacy systems and taking applications from more than one point of origination. About SunTrust Credit Corp. SunTrust Credit, which specializes in small business financing, is a wholly-owned subsidiary of SunTrust Banks, Inc., the nation's ninth largest commercial banking organization. SunTrust Credit provides small business financing through various loan and lease products that are customized to meet the specific needs of its customers. Its products include a selection of term loans, leases and both secured and unsecured revolving lines of credit. The Company offers it services in all 50 states. SunTrust Credit is a Nevada corporation with offices in Little Rock, Ark. and Reno, Nev. For additional information, visit SunTrust Credit on the web at www.suntrustcredit.com. About eCredit.com eCredit.com
enables Fortune 1000 companies,
financial services organizations
and relationships, increase customer purchasing power, and grow the bottom line. eCredit.com solutions automate credit and underwriting to better manage risk and deliver a portfolio of financing options at the point-of-sale. Included among the Company's customers and partners are CIT, Eastman Chemical, GMAC, Fleet Leasing, Gateway and Ryder System, Inc. eCredit.com, headquartered
in Dedham, Mass., is a member
of the Internet Capital Group
(NASDAQ: ICGE) The eCredit.com logo is a trademark of eCredit.com. CONTACT: eCredit.com Roopa Bhide (781) 752-1275 roopa@ecredit.com ############################################################ ------------------------------------------------------------------------------------------ Lenders on the Internet Have Problems-----a Preview from Venturewire.com Homes.com LLC Files for Chapter 11 Bankruptcy MENLO
PARK, Calif.
-- Homes.com Inc., a
provider of marketing and productivity
Chapter
11 bankruptcy. According to
the company's attorney David
Caplan, out,
and rather than fight it out
court, they decided to take
the Chapter 11 route,"
said.
Homes.com Inc. announced last
week that it laid off 150 employees,
40% restructuring,
but it is completely operational,"
said Mr. Caplan. Homes.com Inc.
million
in its Series A funding in March
2000 from investors including
Venture Partners, Kinetics Ventures, and Lighthouse Capital.http://www.homes.com/ ----------------------------------------------------------------------------------------- www.quickenloan.com Hey Kit! The only complaint I have is that I am tired of listening to people whine about the information you print that is "not relevant" (according to them). How can it possibly be smart to limit your "information intake" to the equipment leasing business only. We are in the commercial lending and finance sector, and almost everything that happens in it should be of interest to us. Much of it affects us directly, or has the potential to in the long run. How many of our clients use Quicken or Quickbooks? What do you tell them when they ask you about quickenloans.com? "Uuuhhh, what's that?" Get a grip, guys - there is a whole world out there! Get off Kit's back! If you don't want to read something, skip it. And realize how fortunate we are to have Leasingnews. I subscribe to several newsletters from industries we actively lend/lease to, and not one of them has such an "inside scoop" like Leasingnews. Please continue to provide things that you think are of interest to us. Some of us appreciate it! Travis Foxx President <travisfoxx@merchantcapital.net Need financing for your growing business? Merchant Capital - "Financing for Entrepreneurs" http://www.merchantcapital.net ---------------------------------------------------------------------------- We encourage you to quote us ( you don't need or permission ) Send to a Colleague!!! go on line to our site www.leasingnews.org and press "send to a friend." ----------------------------------------------------------------------------------------
FICO Score by Archie Julian In yesterday's San Francisco Chronicle I read an article in the Real Estate section I would like to share with you. The article was written by Kenneth R. Harney and the headline reads "Your 'FICO' Score is No Longer A Secret." The following are excerpts from the article. Fair, Issaac and Co. - teamed live online with credit bureau Equifax to provide "FICO" scores and other personal credit information to consumers nationwide. It goes on to explain what a "FICO" score is. California mandated disclosure of credit scores to all borrowers who request them, beginning July 1. Federal legislation that would do the same thing nationwide is pending in both houses of Congress. This week's launch of what the two sponsoring companies call "ScorePower" service should eliminate the controversy of FICO score secrecy. For a $12.95 charge on a major credit card, anyone can now obtain not only an Equifax credit report online, but a current FICO score - accessible for 30 days - plus personalized guidance on the key reasons for the score. The service will also provide a graphic representation showing how you stack up against all other borrowers, and specific recommendations on what you can do to raise your score. To access your credit data, you'll have to pass through what Equifax Vice president J. Michael Cummins called an "interactive identity authentication process." The authentication program will ask a series of questions involving credit-file information- consumer loan balances, names of lenders, etc. - that only Equifax and the holder of the actual credit accounts would be able to answer. The authentication system is sophisticated enough to screen out someone in possession of another person's wallet, credit cards and Social Security number who is seeking illegal access to a credit file, according to Cummins. Although the new service is the first to offer the actual FICO score that lenders obtain and use in credit decisions, it is not the only online commercial source of credit scores. At least two others - www.qspace.com and www.worthknowing.com - offer other types of scores that analyze and quantify one's credit standing. For some consumers, the other Web sites can be confusing. For example, a Washington D.C., area homeowner recently obtained what she assumed was her credit score through the Qspace Web site, and was disturbed that her score was much lower than the credit score she had heard amount in a financing several years earlier. The Qspace score is not a FICO score- a disclosure only found in the fine print on the Web site. It is instead a generic score the an Qspace spokeswoman said can only emulat3e a real FICO The bottom line: At least for the time being, there's only one source for the real thing - the FICO score your mortgage lender actually uses to evaluate you. Anything else may be interesting and even educational. But it may not be relevant in the real world of mortgage lending. Archie Julian <JulianA@ExchangeBank.com> ---------------------------------------------------------------------------------------
Duit Software releases DUIT!Broker 3.0 and DUIT!Lessor 3.0 ########################################################## Enhanced SSL encryption features, more robust vendor integration, and entirely new architecture. Austin, TX (March 26, 2001) Duit Software (www.duitsoftware.com), the emerging leader in financing industry software solutions, announced the release of DUIT!Broker 3.0 and DUIT!Lessor 3.0 - Web-based financing software solutions, built from day-one for small and medium brokers, lessors, funding sources, and internal financing wings. Answering the calls for heightened security, more seamless vendor management and integration functions, and intuitive application database access, Duit Software met those challenges with what some industry insiders are calling an "unparalleled software solution" for small and medium financing companies. Due to the fiercely competitive climate, the occurrence of financing companies downsizing, re-evaluating their business model, and even closing their doors has become too familiar. Duit Software understood that small and medium financing companies need a competitive edge in order to survive. DUIT!Broker 3.0 and DUIT!Lessor 3.0 enable financing companies to increase the efficiency by which they operate. With this sophisticated software, the lease-quoting process is completely automated. Furthermore, the tedious, labor-intensive steps involved in the conventional paper-application completion process are avoided, reducing number of employees required to run the business. Simply put, DUIT! 3.0 enables companies to gain and follow up on more REAL leasing leads, and make more money. DUIT!Lessor 3.0 is designed for lessors and internal financing wings, looking to instantly increase the number of qualified lease applications, and streamline the quoting and application submission processes. Features include: A customizable online rate calculator - The rate calculator comes standard with four buyout tables and terms from 12 to 60 months, and a very intui tive administrative section for creating and updating rate variables. Secure, encrypted online application with automatic posting of customer's lease terms - Upon choosing the appropriate monthly payment, the customer is invited to complete the online application - either by submitting it online, or by printing and faxing it. The application is then securely routed to the lessor's encrypted database, with the customer's lease terms included (customer's information is NOT e-mailed). A unique, professional Web site - Duit Software will design the Web site with professionalism and productivity in mind. Additionally, DUIT!Lessor 3.0 has the ability to create a virtually unlimited number of additional pages. DUIT!Lessor 3.0 can also easily integrate with an existing Web site. Automated email notifications - Once the customer submits the application, the lessor and customer are sent separate emails, containing the application's unique numerical identifier, and customizable email text. Secure, encrypted searchable application database - The application database is secured with the latest in SSL encryption, and protected by login and password. Applications can be searched for by a variety of criteria: company name, contact name, telephone number, e-mail address, and application number. The applications are displayed in a printer-friendly format, for quick hard-copy archiving. Easy application customization - Adding, removing, and organizing application fields is a snap with DUIT!Lessor 3.0. Even customizing the release statement is easy, with simple text or custom HTML. Security and encryption at all points of data entry and data transferal - Data entry by customer and lessor - and data transferal by lessor - are all secured from end to end with SSL encryption, hard-coded password protection, or hard-encryption, for maximum security. Completely Web-based software - no software installation is necessary, as DUIT!Lessor requires only a dialup Internet connection and standard Web browser. DUIT!Broker 3.0 is designed for brokers and funding sources looking to bring in more business through their vendors, looking to integrate their host of services with their vendors, and looking to create a fluid, complete customer experience between vendor and broker. DUIT!Broker 3.0 includes all features of DUIT!Lessor 3.0 plus: Secure, encrypted online vendor enrollment |