Vertical Lend News - Financial Professionals Provide Mortgage Services

The net result of these trends has been the repositioning of huge, previously specialized financial institutions as one-stop-shopping solutions for every aspect of consumers' financial products and services needs. Understandably, many small to mid-sized financial businesses and practitioners perceive these new financial superstores as difficult competitive challenges that could potentially threaten existing and potential client relationships.

Will the Internet Help Independent Financial Professionals Compete?

A more optimistic way to look at this scenario, however, is that this trend, coupled with technological advances that relate specifically to the Internet and e-commerce, actually could create competitive advantages for such independent professionals. In all likelihood, smaller practitioners could offer a "best of both worlds" solution to both existing and potential customers that involve a broadening of their offerings with the perk of more personalized, attentive service, and with no material increase in costs or administrative burdens.

Whether purchasing or refinancing a new home, consumers traditionally seek out services from banking institutions or mortgage brokers but they also need additional support from their personal accountants, financial planners and/or insurance agents to complete the loan process. In the e-commerce world, there are several online options, but ones that often still require assistance from the customer's CPA or financial planner. Why not just let the customer's financial professional assist in obtaining a loan, as that person is already involved in this process and has a more personal and mutually trusting business relationship with the client?

Barriers Have Been Removed

In the past, the barriers to such an apparently logical solution were primarily legal and regulatory. But those barriers have largely disappeared with the recent passage of the 1999 Glass-Steagall Act. Such changes are long overdue. It's always been a large source of frustration for financial professionals of every stripe that the one best suited to help a consumer execute the biggest transaction of his or her life was, if not legally prevented from doing so, lacking in the ability to receive fair compensation for providing such assistance.

Once these obstacles started falling away, online loan companies such as E-Loan and LendingTree.com began sprouting up to aid users in securing loans. One company, however, took a different approach. Verticallend.com began moving toward the realization of a longstanding vision -- to provide independent CPAs, insurance agents and financial professionals with Internet-based tools to assist their customers in obtaining mortgages, personal loans and other financial services without adding any overhead cost or administrative distractions.

A Different Model

Programs like the one offered by Verticallend.com offer solutions that support the capabilities of the small- to medium-sized financial professional, while at the same time providing consumers a direct connection to a professional ally in support of one of the biggest financial investments many of them will ever make.

With recent legislation and the relaxing of commission regulations for CPAs, smaller-sized practitioners can now provide their current client base with the added value of support through financial loan processes. Think about it. Who better knows a client's financial data than that person's accountant? And who is more likely to draft a deal that is more favorable to the client than to the bank? The consumer's trusted accountant, financial adviser or insurance agent, of course!

Working with Verticallend.com, the financial professional receives the full support of a loan specialist along with access to related technology and procedural support at no extra cost. Customers get the full support of a trusted adviser who is already familiar with their financial situation and strategy. Compensation for the professional is based on the loan value, so there are no unanticipated costs or other surprises at closing, and no incentives or allowances for the planner to add in extra points or fees.

Getting the best deal is an obvious goal for homebuyers, refinancers and business borrowers. Lenders can also benefit by dealing with borrowers who have been better prepared by a professional to ensure a smoother transaction for both parties. The combination of these elements provides the rationale for the Verticallend.com program model -- buyers working with their trusted financial planners for the best available loan program. Financial planners offering lending solutions… it's a natural fit!