Sign Michigan Banking Living Will Online

Industry sign banking michigan living will online

good afternoon my name is dave cody and i'm joined by my partner luke lahaye from acap and loan source and we're here to talk to you about uh our position in the ppp program uh and try and create a uh a platform for us to share what we've learned so far and you know create a an open dialogue with you to discuss uh what we've learned and how we might be helpful in navigating forgiveness and in dealing what we with what we've come to refer to as ppp fatigue a little bit about our backgrounds uh we came together uh earlier this year with extensive backgrounds in middle market lending servicing of middle market loans and investing in non-bank finance all over the united states of america and outside of the u.s i was an early partner at fortress and have been engaged in uh business development and commercialization of asset management platforms since i left 10 years ago my business partner luke lahaye who you will hear from in a couple of minutes here has spent the better part of his career in middle market landing and servicing most recently as a as a senior member of the team at at red ridge and x works capital he is the cio of acap and the loan source and is also a michigan native so uh what i would like to do is turn this over to luke and have him take you through you know how we're set up and some of the lessons we've learned and and then we can uh definitely come back to you with answers to any questions you have feel free to reach out to us on the on the contact information that we have at dan luke thanks dave so it's nice to meet everyone luke lahaye chief investment officer at acap and steve pointed out i'm a michigan michigan native from sheboygan up by up by the bridge i'm sure many of you are are familiar so uh it's good good to talk to you today so as dave pointed out um we came together you know earlier this year really focused on the front end and ppp helped originate about 5000 loans uh half a billion dollars really cut our teeth there and understanding the program and the ins and outs and nuances of it as we worked through that we we began building out the servicing platform which is acap and the idea of that was to put together a platform that banks could utilize to basically offload the burden that is you know everyone knows as ppp forgiveness so at this point you know we have about 30 000 loans that we're working through forgiveness on and just a few quick stats you know around that is we view that it takes about eight to ten hours for a borrower to prepare to even come apply for forgiveness and then once they do apply you know it takes our team you know upwards of three plus hours to work through the application both just reviewing documentation and back and forth with borrowers on you know what what are incomplete applications so you know we've we've really been able to enhance and build out the platform through real live examples of going through forgiveness and we've been live with the platform since mid-august and i think that's been key to get to get the business the process and everything in place you know as we go into what are going to be the busiest times which we we view as end of q4 all of q1 um you really got to be prepared and have your systems and processes in place so we you know that's so basically acap is the servicing platform for the loan source which is our sba entity that owns the 30 000 loans that we've purchased since since june when we began this so you know some of these items that we can share that we've learned um and we're really happy to go into details with these on on separate calls but i'm sure a lot of these you know aren't going to be a big surprise to to most of you since you're all already in you know in the in some form of the process of pvp so you know the the biggest challenge when you're doing this is just the continuous moving target you know as as you well know just bringing out the simplified and i use that in air quotes uh forgiveness form you know that had taken you know we're about to go live with our you know new patch for that that took about two weeks to put in place so again just another one of the many changes that you have to be able to adapt to spend time and resources on to be able to you know process these loans you know as you go through forgiveness so i'm sure there's going to be more changes as we go and that's where your team has to you have to be willing to have the team in place to monitor it but then also the team the tech team in place to update and you know enhance your portfolio your platforms for that um it's very very labor-intensive process as as you know so our group you know the great thing about partnering with a group like ours is we have nearly a hund we have a hundred people that work on this at any given time and so this is and this is all we do so 24 7 you know we're working on forgiveness and thinking about origination for ppp and everything kind of surrounding it all the compliance the ongoing rules regulations you know so by partnering with us you get that you know full-time expertise versus having to have you know your team spend part-time on it because they all have other other business lines they have to focus on um so it makes it tough you know for from a bank perspective to dedicate the ftes needed for this um you know it's a very specialized product uh you know the rules are very specific on what you got to do and since it's a short-term product you know a lot of times the cost benefit of building out a group to do this you know for for a bank just isn't there so again that's that's the benefit you get with partnering with a group group like us um you know then you gotta invest in the technology which we have the the platform for forgiveness and then we also you know i think what's to prove to be a really big benefit for the the banks that are partnered with us is we have the origination platform that's integrated with the forgiveness portal as well so our borrowers are able to go into the same portal it's the exact same technology the look and feel is the same it flows it flows the same so we've already taught them how to do forgiveness with us and went through the headaches of login and passwords and all of that fun stuff so they're already in our portal can go straight into origination when that happens and we can partner with the selling banks to provide that service and and also provide the bank a fee on on partnering with us in that in that phase of it so as you know some may or may not know we have purchased loans um you know in michigan already you know michigan's been a big state that you know issued almost 16 billion in ppp loans uh we bought a portfolio of about 450 million um and you know there's you know so a lot of you you know there's a lot of loans to be had in p you know in michigan to both service and new originations um we're working with a couple groups to to partner on round two and we you know we very much plan to be a big a big originator in michigan and we'd love to to partner with you guys and just me being from michigan i have a you know more of a desire to to help see my home state you know make sure we can put out the money and to the jobs and the businesses that need it and help help those companies through this i think you'll see here you can see of our the portfolio we purchased about half of it was specifically businesses in michigan so 228 million of loans that are in our current portfolio um you know we estimate that that impacts about 27 000 jobs so you can see we we you know have have quite a tie into michigan already so i kind of touched on this a few slides ago but the way that the way that we're able to do this is we've built out a dedicated platform to service and subsequently going to originate ppp loans so we've got a full technology solution in place where borrowers can come into a landing page they'll have the option of going for you know completing their forgiveness application utilizing our online platform with all of its faqs built-in chat service with both a knowledge base it pulls from but also live personnel you know live acap personnel that they can talk to while they're going through it um you know so you have to have not only the software platform that you can allow your borrowers to go into but you have to have the personnel behind it otherwise your entire staff is going to get bogged down in this and that's where you know with partnering with us we've got the front end customer service so people doing chat phone email support we've got verification staff that go back and forth with the borrowers making sure they've submitted complete applications and then our final review staff who are mainly cpa lending types that are doing the final review before we submit to the sba so you've got to have that full built out you know group to do this and otherwise you know it's going to be a very arduous process for both the borrowers and frankly for for the bank you know we've got like i said uh a lot of faqs and webinars that we do with borrowers to try to help train them i think what we've found though no matter how much detailed information you give them really what we've kind of dropped back to is just try to nail the basics if we can just teach people you know here are the three things you must do to submit your application we feel like that'll get us probably about 80 of the way there and then we can help them over the line in the last 20. um you know that was something that you know we recently kind of pivoted on uh just through the experience of going through this now with about 2 000 applications that have been been submitted to us so you know there's ways you can you know by just even using our knowledge base of what we've learned you know you've got to have i think a dedicated staff you know you need to have faqs and tools built out for the borrowers to use to help the goal there has got to be to get completed applications uh or not completed but i would say almost completed applications whether submitting enough information the proper information and following your processes and that's where you know that's the biggest lift i think that banks will find is you can have a software solution and a portal but if you're not you know focusing in on the right things it won't get utilized properly by the borrowers because they'll have a million questions and by your own team so you can build all that out yourself and that that does take a lot of time and money or partner with a group like ours and you can leverage you know you can leverage all those tools that we've already you know invested the time resources etc in so the way that we try to to work with the banks is is through more of a partnership relationship rather than just a transactional one so you'll see in terms of when we purchase loans our communications with you know from the selling bank and from ourselves the initial communication is very much to describe this as a partnership there's co-branded communication they get the borrowers would get from the selling bank that would introduce our group explain why the bank has chosen to partner with us as the specialists in this industry i think a lot of people the borrowers actually have have responded quite well to this because they understand that it is a very specialized process and since it's specialized and short term they understand why a bank can't spend the time and resources to build out what we you know what we have and what we can offer so that's been pretty well received um we have all those marketing materials already drafted that we can share and uh provide to the to the selling bank and help you know walk through that process now that we've you know we've bought from 29 banks so it's pretty well um it's a well-oiled process at this point of you know what is successful what's not and we could help help walk your teams through that um once that communication goes out you know we go through we send out our own welcome package which really focuses on those kind of top three tips of how you're going to you know get through forgiveness you know the in the easiest manner possible i won't say it's easy because it's not it's a lot of work for the borrower but you know there are certain things they can do to kind of alleviate the burden on them so we do that invite them into our portal once they get in the portal as i described it has a landing page with all their pertinent loan information it's very transparent to them of the status of their loan both the amount owed and the interest accruing uh where they're at when they give apply for forgiveness and then when they go into the forgiveness platform they can see exactly where they're at and the steps you know say they're seven steps in the process they can see very clearly where they're at to you know submit an application and then once it's submitted where it's at has our underwriters or verifier reviewed it have the underwriters reviewed it has it been submitted to the sba has the sba responded you know that was something i think we took away from the origination side was the whole process was just a black box for borrowers and so we when we built out the platform we wanted it to be transparent you know one it reduces questions right but two it just also enhances that you know customer experience and that was that was the main goal is just to be transparent let them know where they're at um and then if they have questions you know they can reach out like i described we have a full support team in place um through either they can go online and chat which is usually the method i prefer they can email in if they like that or you know even pick up the phone and call us and uh they can they can get an agent uh and get their their questions answered um and then if they're those questions are too detailed you know because some are very technical forgiveness questions uh they get escalated to you know the forgiveness team who goes through and reviews those and we try to respond within you know 24-36 hours on those detailed uh technical questions so we think you know the the main takeaways we'd like to you know kind of have you have from this is you really got to focus on the customer's experience this is going to be a tough process and borrowers are frustrated that they even have to come apply for forgiveness at least in the front end when they got the loan originated the goal you know the the end process was them getting money so that was nice because that was actually a good experience now it's just they get to tell the government how they spent the money and that creates frustration just from day one so you really have to have a good process built out or that will add to your customers frustration that they already have to apply for forgiveness you need to build out the platform with the sole intention of you know processing forgiveness if you try to do a one-size-fits-all you know type system it's not going it's just not going to be specific enough because this process is very specialized and that's where this platform you have to invest in and build out needs to be and then you've got to have the the team sitting behind it you can have the best you know i could give you our software and you could just offer it to your customers but they wouldn't be able to use it like they can with with a group like ours standing behind it and i would say that's the key like our team has taken the the platform you know from august till now and it's you know 100 different because of all the continuous upgrades we roll out each week but then also the customer support verification underwriting staff you know we have like i said over 100 people that work on this any any given day and that's really what a bank will have to do and invest in if you want to be able to process these loans uh efficiently and you know have your customers get through this this process so as we mentioned you know our group was purposely built yeah to be your ppp solution right so we we want it you know we want to partner with you service the loans help your customer through forgiveness and then subsequently you know hopefully partner with you as well on the origination side um you could use our platform to help focus your you know your fts and personnel on the core business of the bank and le us help get them through this ppp and stimulus process so here's my contact information as dave said if anyone if you have any questions like the schedule a follow-up call go more into detail of what the actual sale process or origination process you know kind of looks feels anything like you could either email me or even call me direct and we're happy to take your team take your team through that you