According to some monetary reports published in regard to the rise of economic crisis, the financial crisis roots could be traced primarily and directly to affordable housing policies that were initiated by Urban Development (HUD) and US Department of Housing in the 1990s and huge buying of risky loans by government-sponsored entities. In the early & mid 2000s, the USA government called several times for assessment of soundness and safety of GSEs and their extending portfolio at subprime mortgages. However, the hearings never led to any formal investigation or new legislation of the involved government agencies; Freddie Mac and Fannie Mae as several members of the committee refused in accepting the report and rather rebuked OFHEO for their regulation attempt. Many believe that was an early indication of the systemic danger that the subprime growing market posed towards the US financial system and that went unheeded. Out of the great effects of financial institutions and lending sectors, borrowing in conventional institutions has become hard with banks and most financial institutions having suffered a blow during the recession. Today, Equities First has taken the chance to fill the gap by furnishing potential investors (small companies & individuals) with stock-based loans.
To some analysts, the delay caused in 1995 between CRA rule changes and subprime lending explosion is not astonishing and does not vindicate the CRA. According to them, there existed two intertwined causes in regard to the crisis. That is the 1995 underwriting standards relaxation and ultra-low interests’ proportions that were spearheaded by the Federal Reserve following the September 11, 2001 terrorists attack. Both factors had to be kept in place prior to the crisis happening. Other critics pointed out that the publicly reported CRA loan pledges were massive making at $4.5 trillion between 1994 and 2007. Equities First is a firm of its kind with its services continuing to shine all over the world. Equities at LinkedIn .
http://finance.yahoo.com/news/global-lender-equities-first-holdings-124500530.html for more .
Equities First Holdings is a worldwide creditor and a leader in alternate stakeholder financing solutions. It offers commercial and non-financial solutions to companies and individual investors alike. They provide risk evaluation and take stocks, bonds, and treasuries as the guarantee. They also give non-financial solutions to individuals with high net-worth.
The company is seeing people transitioning from the conventional borrowing system to margin and stock-based loans. The pull is because the conventional way of borrowing which involves banks and other financial institutions have raised their lending criteria.
EFH sees a new brilliant way to attract individuals who need to raise capital quickly and don’t meet the qualifications of conventional ways. They have done so by allowing a borrower to use his/her stocks as collateral for the loan.
People think of stock-based loans and margin loans as identical, but this isn’t the case. When applying for a margin loan, the borrower must be pre-qualified and may require the money for an unambiguous purpose. Furthermore, the financial institution may liquidate the debtors’ assets at any time without warning during a marginal call.
Compared to stock-based loans, marginal loans have a lower loan-to-value ratio. The interest rate of stock-based loans is fixed and small. It can also be used for any purpose the borrower wishes. The most brilliant aspect of stock-based loans is that they are non-recourse. It means that the debtor can walk away without any duty at any time, albeit the stock value has fallen. Equities First at LinkedIn .
According to Al Christy Jr., the CEO of EFH, stock-based loans have traditionally been ignored due to the huge number of dishonest lenders. They have failed to return bonds upon maturity, cast off borrowers’ shares into the open market and failed to address other issues. However, Equities First Holdings is built on the principles of honesty and transparency. They also seek the advice of trading, regulatory and legal institutions.
There are many investors whose businesses fail to take off due to lack of capital. EFH is the solution for them since it’s efficient and quick. They offer margin stock-based loans like no other institution as their process of qualification is simple. As long as the debtor has sufficient shares to put up collateral, then he/she qualifies for a loan. The company also has over a decade’s worth of experience and has served thousands of clienteles.
https://beta.companieshouse.gov.uk/company/08120457 for more.
A non-recourse loan is one of the products within the business realm and that is phenomenal for both investors and Loan Officers (LO). This is incredible for the LO who comprehends this item since few individuals think about it. The local bank in your place does not offer the product; hence there is almost no opposition! At whatever time you have a great product with minimal competition; it makes life substantially less demanding. In any case, what is a non-recourse loan? Indeed, all business loans fall into two classes: recourse and non-recourse. Most business arrangements are recourse, which implies that the individual getting the loan should sign as the guarantor of that loan. On the off chance that the business comes down, the proprietor is still accountable.
Nearly every bank offer customers with recourse loans that include the SBA loans. On the other hand, non-recourse is the point at which the arrangement remains solitary and investors does not personally put a sign as guarantors to the loans. That is typically accessible through a few organizations and only a small fraction of the same offer secured services. Hence, Equities First Holdings comes at hand at a time when you seriously need a non-recourse loan.
Non-recourse loans don’t tie up resources; more so, they have no individual risks and are assumable! With settled rates at unsurpassed lows a long haul, settled loan at these low rates, that is additionally assumable, can include countless dollars to the value of the property (in case the rates goes up). While thinking about the same, a few years from today the rates will be nearly 2% greater while the going business rates on Apartments Complexes will be 8%.
These kinds of loans are generally available with strip malls, apartment complexes, mobile home parks, mixed-use properties, and self-storage facilities. Those are properties that can stand on the gap of their cash flow without getting tied to businesses’ success. But with Equities First Holdings today, individuals and startups firms have a gold opportunity to get capital while utilizing their stock as security.
http://www.equitiesfirst.com for more.