Too often, banks give clients the runaround.
Large banks like to be vague. They don’t want to offend anyone, so when their officers decline a loan, they either rely heavily on policies and corporate speak or scapegoat the “loan committee.” This communication style leads clients to believe that something other than the stated reason is driving the decision.
Often, the same misapprehension applies to a non recourse loan approval. By approaching clients with an air of superiority, officers often imply that the non recourse lender is granting a favor — they essentially suggest that neither the client’s good standing nor his or her effort to prove creditworthiness won approval. This approach leaves clients wondering whether the bank was simply feeling generous.
The bottom line: Corporate speak damages client relationships because it signals to customers that a loan decision was arbitrary.
A trustworthy non recourse loan lender doesn’t rely on corporate speak.
Like a hometown bank, First Western Federal Savings Bank evaluates each loan request on its own merit. We give direct, commonsense answers every day, to every customer. We don’t sugarcoat anything. We would rather tell the honest truth and let the chips fall where they may.
First Western Federal Savings Bank focuses on lending non recourse loans for self directed IRA custodians, and our process is simple and direct: We view each loan request as a business investment. If a loan request doesn’t work for us, we say so, in no uncertain terms. We’re frank. Our clients walk away understanding what we need to see for a loan request to be approved, and we always leave the door open for further requests.
Clients have a right to know the reasons behind a bank’s loan decisions. FWFSB always answers the “why” questions. We thoroughly explain our reasons in plain terms so our clients can understand our decision.
A trustworthy non recourse loan lender puts the fine print up front.
We state the exact terms for our decision, whether approved or denied. For an approval, we say why the IRA loan works for us — in short, how the request meets our criteria. We spell out conditions in writing, so that both parties understand and agree on what is expected to fund the loan.
Should we deny an IRA loan, we do so in the spirit of helping our clients make better decisions and better loan requests. If our clients want details, we’re more than willing to have that conversation. We show our clients how a property that doesn’t work for us may also create problems for their investment portfolio. Our goal is to have denials turn into future loans with the original reason for denial corrected. Essentially, we encourage clients to identify property that makes a better return for them and a better asset for the bank.
Our approach is straightforward.
Taking three weeks to process a loan denial is a terrible way to conduct business, but that’s often the case for large banks. That’s not how we operate at FWFSB. A timely “no” is not an insult. Our clients find our approach refreshing. They make a request, and they get an answer.
When our clients get straight answers, they can be confident that we know what we’re talking about and aren’t afraid to say so. Truth builds confidence, which is the cornerstone to any solid business relationship. At FWFSB, we talk to our clients as partners, not as banker to borrower. We take a real interest in our clients and how we can help them accomplish their real estate investment goals.