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Mortgage Broker News | 04 Jun 2015, 09:00 AM Agree 0
When talking about the five C’s of credit, there is a difference in where conventional and private lenders place the order.
  • Mike | 04 Jun 2015, 09:40 AM Agree 0
    Capacity is always the most important C, if they have no ability to repay then giving them the money is reckless. A good broker will convince them to sell and buy something they can afford not rape them. I have seen so many people taken advantage of just because they have equity. Broker gets rich. I suppose the character of the broker might be the other "C"
  • Ron Butler | 04 Jun 2015, 10:47 AM Agree 0
    I think in the private lending business the five "C's" are collateral, collateral, collateral, collateral, and collateral. If I am dead certain I am lending on a solid, plain vanilla property in an easy to re-sell neighborhood at a low loan to value based on a conservative appraisal from a highly respected appraiser the other "C's" don't mean much. Before everybody launches into the long harangue about looking out for the client's best interest consider this: it's their property and if they have decided they want to take a chance to buy some time to get straightened out that's their business nobody else's. I have told many people to sell their houses over the years. 90% of them have said they wanted one more chance. So let's worry about our private INVESTORS and make sure we lend privately on perfect collateral.
  • Gary W. | 05 Jun 2015, 11:09 AM Agree 0
    Man, I just can't compete with these Lagos, Nigeria-based lenders!
    **
    I've been a Toronto GTA private equity lender for thirty years--low seven figure portfolio. Yes, collateral is key. But since the last thing I ever want to do is complete a power of sale, capacity and character rate just as high in my books.
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