Dan Bywater

🛑 SBA Shutdown + Record Numbers = A Strange Moment in Lending 🛠️ The SBA has temporarily shut down. Loans are frozen. Borrowers are stuck. Delegated lenders are sidelined. But here’s the paradox → FY25 just closed with record-breaking numbers:     •    $44.8B in total loan volume     •    84,400 loans approved (most after Jan ‘25)     •    77,600 7(a) loans = $37B     •    6,750 504 loans = $7.8B     •    $5.6B to startups     •    $170M approved per workday Historic. Impressive. And… currently on pause. 🤷‍♂️ 🧠 So, what now? Think of this as “productive purgatory.” The lenders who use this downtime wisely will be the ones who win when SBA reopens:     •    Prep your pipeline — ready Day 1     •    Audit & streamline SBA workflow     •    Train your credit & ops teams     •    Keep partners & borrowers updated     •    Strengthen your team 🔗Where I Come In: I don’t just place talent — I build benches:     •    BDOs with real pipelines     •    Credit pros who don’t fold under pressure     •    Leaders who can scale SBA responsibly Because when SBA hits “play,” it won’t be a jog — it’ll be a sprint. 🏃‍♀️💨 💬 Final thought: Shutdowns are frustrating, but they’re also a chance to reflect, regroup, and re-strategize. 👉 Lenders: “How do we come out of this stronger?” 👉 BDOs: “Is now the time to make a move?”

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Business acquisitions can really be like threading a needle 👇 If the buyer is using an SBA loan, the most you can borrow is going to be around whatever loan amount would have had a debt service coverage ratio of 1.25 or above based on the historical financial results of the business. (rough estimate) But for the seller, once they consider how much cash they will actually receive after paying off the debt in the business, leaving some working capital in the business for the buyer, paying a broker, attorney or other transaction related costs, and paying your taxes, the seller starts to think: "well if that is all I am going to get, maybe I should just run the business a few more years and then sell" It is threading a needle to find the purchase price that the business can cash flow AND will be large enough to entice the seller to actually sell. If you are a buyer, make sure your seller has done this math for themselves early in the process, otherwise you risk a deal blowing up once they do this math right before closing. #acquisition #SBA

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🏠💔 May Madness in the Housing Market 💔🏠 🚨 A whopping 59,000 home-purchase agreements were canceled in May. That’s nearly 15% of all homes that went under contract last month, the highest May fallout rate since Redfin started tracking in 2017! 😳 Las Vegas was 8th in the nation at 18%. So why are so many deals falling apart? And more importantly — how can YOU avoid becoming part of next month’s statistic? ✅ Know your numbers upfront Don’t fall in love with a home before knowing the real cost. Rates and closing costs can shift fast — your lender should walk you through what those numbers look like now, not what they looked like last week. ✅ Get a rock-solid pre-approval It’s not enough to be pre-approved — your lender needs to be 100% confident they can deliver on that specific loan program when it’s time to close. If there’s even a hint of uncertainty, ask questions or get a second opinion. ✅ Insurance isn’t what it used to be Many buyers are sticker-shocked by today’s insurance premiums. Get a quote before you make an offer — it could be the dealbreaker no one warned you about. 🧾💸 ✅ Old home, old problems The charm of an older home can come with costly surprises. And the lower you bid, the lower the odds are that the seller will cover repairs. Know what you’re walking into — and budget accordingly. ✅ Cheap isn’t always cheerful Yes, affordability’s tight. But beware the bargain basement listings. The cheapest homes on the block are often the ones with hidden headaches — maintenance ignored, corners cut, big risks hiding under that fresh paint. 🏡 Buying a home isn’t always easy — but prepared buyers are the ones who close the deal. Affordability is tight, confidence is shaky, and buyers are being extra cautious. Don’t let your dream home turn into a cautionary tale. Ask a lot of questions, be well prepared and surround yourself with pros who’ve got you covered. 💪🔑

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Credit hack to increase your credit score! . ‼️ KAI Mortgage ‼️ . . . . . #mortgage #utahrealestate #mortgagebroker #utahloanofficer #loanfficer #lowrates #purchase #refinance #newhome #FirstTimeHomeBuyer #mortgagerates #mortgagetips #justsold #utahrealtor #preapproved #lowrates #newhome

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It’s no secret: there simply isn’t enough business today to sustain the number of loan officers we’ve seen in this industry for the last several years. Even some of the most seasoned, tenured producers are deciding to move on. At the same time, there are newer LOs switching gears: working intentionally, embracing structure, and outworking the market. They’re finding ways to win by focusing on fundamentals and showing up with purpose every day. Over time, a market that rewards only volume eventually favors those who are deliberate and disciplined. Worth considering, especially if you’re thinking about how to build or reshape your own team right now.

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The FDIC approved deposit insurance applications for Ford Credit Bank and GM Financial Bank, allowing both to operate as FDIC-insured industrial banks in Utah. These banks are structured to fund auto loans using insured deposits instead of relying primarily on wholesale funding and securitization markets. Both will focus on purchasing retail installment contracts originated through dealer networks and funding them with savings accounts and time deposits raised digitally. Deposits are typically a lower and more stable source of funding than unsecured borrowing or asset-backed securitizations. That gives auto captives more flexibility in loan pricing, margin management, and interest rate exposure. It also reduces dependence on capital markets. When securitization spreads widen or issuance slows, deposit funding provides a steady alternative source of liquidity. At the dealership level, this can support more competitive financing offers, greater use of promotional rates, and tighter coordination between vehicle sales and financing. Captives already play a central role in dealer finance, and direct access to deposits strengthens that position. Banks that compete in auto lending now face captives with access to insured deposits and large, built-in customer bases tied directly to vehicle sales. That affects pricing dynamics, particularly in prime and near-prime auto credit. These are not general-purpose retail banks. They are narrowly focused institutions designed to fund auto loans more efficiently.

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I interviewed Jay Promisco, President of Sierra Pacific Mortgage on "The Amazon Effect on Mortgage Lending". Here's a snippet. For more go to: www.patsherlock.com, Podcast. Jay Promisco

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Rates moved again this week — and the headlines don’t always tell the full story. The truth is, the right strategy matters more than the exact rate. Small adjustments in timing, loan structure, or down payment can make a bigger difference than most buyers realize. If you’re thinking about buying, refinancing, or just want to understand what these changes mean for you, it’s worth having a conversation. Clarity beats guessing every time. . . . #mortgagetips #rateupdate #homebuyingstrategy #housingmarket #churchillmortgage

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The hollowing out of the mortgage industry’s middle isn’t just a prediction anymore ... it’s happening in real time. Scale will definitely help the biggest lenders stay profitable. More units, more operating leverage, more margin defense. But scale isn’t all upside. There are real challenges that come with it too: ✔️ Many of the biggest lenders are now public companies - slower, more risk-averse, and under constant pressure from Wall Street. ✔️ Agility disappears - decisions slog through additional layers of management & committees. ✔️ Culture is impacted - people turn into headcounts, relationships turn into transactions. ✔️ Brand identity blurs - it’s easy to become just another national lender yelling into the void. In my opinion, there’s an incredible opportunity ahead for strong, well-run small lenders. If they focus on the right things, they’re not just going to survive ... they’re going to thrive. Here’s what it takes: ✅ Great leadership - leaders who communicate well, inspire confidence, and keep teams focused through the noise. ✅ Marketing dominance - consistent, authentic storytelling across all the platforms that matter every GD day. ✅ Hyperlocal reputation - being the go-to lender in your community, not just another option on a rate sheet. ✅ Smart tech decisions - leverage technology to create a better customer experience, without overspending or overcomplicating. ✅ Revenue diversification - adding servicing, brokerage, insurance, title, and other ancillary plays to smooth out the cycles. The middle is hollowing out. But if you're small, focused, and strategic? This market could be the best opportunity you've ever seen.

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