Achieve’s Post

Let's Delve into the Concept of the 8 Tenets of Good Lending. Please see them mentioned on my website, https://lnkd.in/epSs4UwB, and explore how they relate to responsible lending practices. PARTS: Purpose: This element focuses on the reason behind the loan request. Lenders should assess whether the purpose of the loan is legitimate, productive, and aligns with the borrower's needs. Responsible lenders ensure that borrowers are not using funds for speculative or unethical purposes. Amount: Responsible lending involves determining the appropriate loan amount. Lenders should consider the borrower's financial capacity to repay the loan comfortably without causing undue financial stress. It's crucial to avoid overburdening borrowers with excessive debt. Repayment: This tenet emphasizes establishing a realistic and manageable repayment plan. Lenders should work with borrowers to set up terms that align with their income and financial capabilities. Avoiding predatory lending practices, such as balloon payments, is essential. Terms: Fair and transparent loan terms are essential. Borrowers should fully understand the interest rates, fees, and any penalties associated with the loan. Responsible lenders provide clear information and disclosure about these terms to avoid hidden charges. Security: In some cases, loans may require collateral to mitigate risk. Lenders should assess the value and adequacy of the collateral and ensure that it is protected throughout the lending process. Proper documentation and due diligence are crucial here. The 3 C's: Character refers to assessing the borrower's trustworthiness and reliability. Lenders should evaluate the borrower's credit history, references, and reputation to gauge their likelihood of fulfilling the loan agreement. Capacity involves evaluating the borrower's ability to repay the loan. This assessment considers the borrower's income, expenses, and existing debts. Responsible lenders ensure that the borrower has the financial capability to meet their obligations. Capital refers to the borrower's financial stake in the transaction. Lenders assess whether the borrower has invested their resources into the project or venture, which can serve as an indicator of commitment and risk-sharing. In essence, adhering to these 8 tenets of good lending ensures that lenders prioritize responsible and ethical lending practices. This approach benefits not only the lenders but also the borrowers, investors, and the broader financial system. It prevents the kind of reckless behavior epitomized by Gordon Gekko and his "greed is good" ethos, which can lead to financial crises and harm to all stakeholders. The website's message underscores the importance of responsible lending in protecting investors and customers from predatory practices and promoting a healthier financial ecosystem.

Let's delve into the concept of the 8 tenets of good lending that are mentioned on https://lnkd.in/epSs4UwB, and explore how they relate to responsible lending practices. PARTS: Purpose: This element focuses on the reason behind the loan request. Lenders should assess whether the purpose of the loan is legitimate, productive, and aligns with the borrower's needs. Responsible lenders ensure that borrowers are not using funds for speculative or unethical purposes. Amount: Responsible lending involves determining the appropriate loan amount. Lenders should consider the borrower's financial capacity to repay the loan comfortably without causing undue financial stress. It's crucial to avoid overburdening borrowers with excessive debt. Repayment: This tenet emphasizes establishing a realistic and manageable repayment plan. Lenders should work with borrowers to set up terms that align with their income and financial capabilities. Avoiding predatory lending practices, such as balloon payments, is essential. Terms: Fair and transparent loan terms are essential. Borrowers should fully understand the interest rates, fees, and any penalties associated with the loan. Responsible lenders provide clear information and disclosure about these terms to avoid hidden charges. Security: In some cases, loans may require collateral to mitigate risk. Lenders should assess the value and adequacy of the collateral and ensure that it is protected throughout the lending process. Proper documentation and due diligence are crucial here. The 3 C's: Character refers to assessing the borrower's trustworthiness and reliability. Lenders should evaluate the borrower's credit history, references, and reputation to gauge their likelihood of fulfilling the loan agreement. Capacity involves evaluating the borrower's ability to repay the loan. This assessment considers the borrower's income, expenses, and existing debts. Responsible lenders ensure that the borrower has the financial capability to meet their obligations. Capital refers to the borrower's financial stake in the transaction. Lenders assess whether the borrower has invested their resources into the project or venture, which can serve as an indicator of commitment and risk-sharing. In essence, adhering to these 8 tenets of good lending ensures that lenders prioritize responsible and ethical lending practices. This approach benefits not only the lenders but also the borrowers, investors, and the broader financial system. It prevents the kind of reckless behavior epitomized by Gordon Gekko and his "greed is good" ethos, which can lead to financial crises and harm to all stakeholders.

Your vision is an idea that only YOU can bring to life. And until you do that, you’re robbing the world of a gift. Even if you can’t imagine how you’ll get past the obstacles, your odds for success go WAY up by doing three things: 1) Declare your dream, 2) Believe it, and 3) Act on it. These things work because they are part of an unchangeable process. #BobProctor #SandyGallagher #ProctorGallagher https://lnkd.in/eg-KSC36

Your vision is an idea that only YOU can bring to life. And until you do that, you’re robbing the world of a gift. Even if you can’t imagine how you’ll get past the obstacles, your odds for success go WAY up by doing three things: 1) Declare your dream, 2) Believe it, and 3) Act on it. These things work because they are part of an unchangeable process. #BobProctor #SandyGallagher #ProctorGallagher https://lnkd.in/eg-KSC36

At Red Rock whenever we work directly with financial professionals, we always discuss the power and importance of authenticity. Yesterday, the world lost a truly unique figure with the passing of basketball legend Bill Walton, a man who exemplified being wholly and unapologetically his true self. If you watched Bill commentate on basketball his musings were either endearing or infuriating, but never boring and always seemingly coming from a place of genuine joy and love of the game to which he had dedicated his life.   As financial professionals, at some point in our careers we have the ability and discretion to choose with whom we do business and share our authentic selves. We have the ability to express our joy and love of what we dedicate our lives to with this select group of clients. This is a luxury many businesses cannot afford. At Red Rock, our business has always been built on a foundation of true partnership; which cannot occur in situations where revenue takes priority over good fit, mutual respect, and open, honest communication of both parties in the partnership.    Someone’s passing always makes us consider the importance of time. I urge you to think about how much time and energy you spend on relationships that bring you more pain than pleasure. You have the power to extricate yourself from these situations and forge new relationships which can flourish through being your true self. Your business does not look the same as it did ten years ago, and it will not look the same 10 years from now. You are in a tremendous position to be able to mold your business in your own image. While it may look radically different a month, a year, or 10 years from now; as Bill Walton said about the music of his beloved Grateful Dead, “it’s all one song.”

Your vision is an idea that only YOU can bring to life. And until you do that, you’re robbing the world of a gift. Even if you can’t imagine how you’ll get past the obstacles, your odds for success go WAY up by doing three things: 1) Declare your dream, 2) Believe it, and 3) Act on it. These things work because they are part of an unchangeable process. #BobProctor #SandyGallagher #ProctorGallagher https://lnkd.in/eg-KSC36

Your vision is an idea that only YOU can bring to life. And until you do that, you’re robbing the world of a gift. Even if you can’t imagine how you’ll get past the obstacles, your odds for success go WAY up by doing three things: 1) Declare your dream, 2) Believe it, and 3) Act on it. These things work because they are part of an unchangeable process. #BobProctor #SandyGallagher #ProctorGallagher https://lnkd.in/eg-KSC36

Your vision is an idea that only YOU can bring to life. And until you do that, you’re robbing the world of a gift. Even if you can’t imagine how you’ll get past the obstacles, your odds for success go WAY up by doing three things: 1) Declare your dream, 2) Believe it, and 3) Act on it. These things work because they are part of an unchangeable process. #BobProctor #SandyGallagher #ProctorGallagher https://lnkd.in/eg-KSC36

We control our future. Providing we do our part. You only need to see examples in business where consistent effort results in remarkable achievements We know this is true because if it wasn’t we wouldn’t have 30 year mortgages because companies would not make loans if there wasn’t an established pattern of prior results. That doesn’t mean we will always win, but there will always be an upward trajectory. Strive for excellence, not just the top spot. While only one person or team can finish first, we can all give our best effort and never settle for less. Let's lead by example and help our team achieve their dreams. No regrets, just hard work and dedication. #excellence #leadership #teamwork