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First-hand knowledge is accounted from providing sensitive financial documents, having a prime credit score, beneath the DTI ratio, capacity qualified and if needed, sizable collateral for security which none of the satisfying requirements proved to yield an Approval in this climate but met with deterring tactics, questionable motives and more complied requests to ascertain certifying documents which also went unfulfilled by MTFCU.

This method is a “predatory process of elimination” (PPE), Marcia Meredith named the real “PPE”, speaks against those lenders that practice this method. Not all Lenders are the same, most lenders conduct their operations above board. To prevent this method of PPE from happening, most large banks now have underwriting departments separate from the branches over a certain dollar amount so the actual underwriter can underwrite the loan without knowing you, seeing you nor investing any emotion into the applicant; the application is purely about the file presented to qualify for their product offerings. The information is handled with the branch manager  to the  underwriter from separate locations without interference or influence from any branch level employee.

In an earlier article titled “How to Find the Right PPP Lender”, refer to the www.rosdimere.com/media/,  Marcia spoke on the guidelines of qualifications to acquire a Small Business Administration’s (SBA) PPP Loan. During the heightened Covid alert, some Lenders representing the SBA’s product were requesting information not required to disqualify applicants. Since the unaware applicants did not know they were experiencing discrimination, the applicants voluntarily disengaged with the Lender thinking they would not receive the financial assistance. The application then times out upon an estimated 30 days in the banks software system as “incomplete” which then automatically turn down the application generating a “decline letter” for an incomplete application mailed to the applicants address placed on file at time of application. This method holds the Lender harmless and undetected.

Since Covid and the SBA products have expired, lending has seemingly returned to normal. As business owners we are all still growing, expanding, and developing our businesses. During Covid many banking fraudulent transactions took place in wires and lending, therefore banks, lenders the same, have tighten their processes, adjusted their credit criteria, which they should have. AML is real, maintain honorable endeavors.

Don’t be afraid to ask your Lender questions – find out which credit agency the selected lender pulls from, what is the ideal score to lend against, what are the rates, for the dollar amount requested know if you need security, have all your paperwork in order ie taxes, bank records, complete a financial statement, know your assets vs your liabilities and have all your assets on hand to create a liability statement. At the end of the day, one knows they are qualified prior to entering the door. In the end, go with confidence. If all this is together, then you will know emphatically if you are experiencing anything different.

Ros DiMere Inc. and Meredith are represented by George Edwards III, Murtaza F. Sutarwalla and Stephany M. Simien of Edwards Sutarwalla PLLC.

The case is Ros DiMere Inc et al. v. Members Trust of the Southwest Federal Credit Union, case number 4:23–cv–03180, in the U.S. District Court for the Southern District of Texas, Houston Division.

Also refer to- LAW360 “Black Texas Biz Owner Says $75,000 Loan Denial Tied To Race”