Loans4Less.com, a public company established in 1999 in the state of Delaware, serves the needs of consumers looking to finance or refinance via 1st home mortgage loans. Located in California, Loans4Less.com is a loan brokerage for “A” paper under Regulation A provisions, which provide for a conditional securities exemption to allow public offers and sales of up to $5 million of securities in a 12-month period. In order to use Regulation A, companies must be organized under laws of the U.S. or Canada, may not operate as an investment company or a blank check company, and must fall outside the purview of the Securities Exchange Act.
The purpose of Regulation A is to allow companies to assess investor interest by means of general advertising prior to the filing of an offering statement. Two caveats apply: the Company must file any written or verbal (recorded) information with the SEC, and must also comply with any laws in the state where it operates, including refraining from offering A paper in states which expressly forbid it. In addition, Regulation A can be used for secondary offerings, as for example when shareholders want to sell. Newer provisions to Regulation A are available via the GAO (Government Accountability Office (www.gao.gov/products/GAO-12-839).
Loans4Less stands in an enviable position given the fact that, in 2010, only 7 initial Regulation A offerings were granted out of a field of 25. Loans4Less also maintains an A+ TrustLink rating with the Better Business Bureau.
One of the primary purposes of the Jumpstart Our Business Startups Act (JOBS Act) was to increase small business capital formation, which had sunk to a new low in the wake of the 2007-2009 recession – a failure of U.S. business confidence and a shrinking job market which some economists have called the worst since the Great Depression of the 1930s.
Loans4Less operates successfully in a highly competitive market by providing ambitious loan metrics, including low costs, daily updates, peripheral market information, and the kind of honest, transparent service that puts it head and shoulders above its rivals. What this means to consumers who are not cognizant of all the rules and regulations surrounding investing and loans is the fact that the Company does not operate a “warehouse line” of credit or service loans. In other words, it is not the puppy mill of the Regulation A world, and as a result is not susceptible to the dangers associated with the sub-prime, or Alt A”, loan marketplace. Instead, Loans4Less relies on its access to primary wholesale lenders and their retail home loan programs.
Further, LFLS has come through the recession unscathed while many of its competitors have been driven out of business. This has led to a uniquely profitable situation for the Company, which is now using its “survivability quotient” to focus on growing its gross revenues via a typical but extremely successful business plan comprised of a double-pronged assault: inexpensive but compelling advertising and licensing or third party agreements.
Loans4Less executives expect the initiatives to create a larger business footprint which could turn the Company into a nationwide brand name. These same executives, experienced in the real estate and financial services sectors, have enough savvy between them to propel LFLS into the forefront of the Regulation A lending world.
In addition to its .com loan brokerage services, Loans4Less.com has operating authority over 62 domain names and key registered Service Marks; e.g. ® and “Reg U.S. Pat & TM Off (U.S. Patent and Trademark Office). These include Loans4Less.com, Inc. and its wholly owned subsidiary, Union Discount Mortgage, Inc. – a California Corporation DBA Loans4Less® – and Platinum Properties.
LFLS, an online mortgage broker, works through its subsidiary Union Discount Mortgage, to match qualified mortgage loan seekers with available lenders offering the best price. The Company brokers first liens to “A” rated borrowers with high FICO scores. Since these are the most desirable borrowers, LFLS does the heavy lifting by finding the best offering among its stable of lenders, who in return provide LFLS with a competitive wholesale lending program. The loans come in a variety of configurations, from the standard 30-year fixed rate mortgage, or 5/1 adjustable rate mortgage, to suitable conforming or jumbo mortgage loans.
LFLS plans to build a national consumer loan platform for conforming residential mortgage programs. It also hopes to broaden its base of products and services by introducing other consumer loan programs funded via its operating providers. This carefully thought-out business plan offers consumers better choices in selecting a mortgage, and provides shareholders with the likelihood of steady, rewarding profits.
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