TDS for Alternative Lenders
Alternative lenders use the acronym TDS but not in the way you’d think…
For alternative lenders, like us here at Kokanee Mortgage, TDS no longer stands for Total Debt Service. For us, it stands for Thoroughly Descriptive Story.
This is because in the world of alternative lenders, generic formulas like Total Debt Service (TDS) and Gross Debt Service (GDS) have little meaning for us. After all, these borrowers are working with alternative lenders because they don’t fit into the existing and more traditional ratios used by the conventional lenders.
So instead, we decided that we are changing the traditional acronym of TDS to be defined in a way that is more suited to our practices.
Allow us to explain the alternative lender’s definition of the acronym TDS:
Thoroughly: This means we want ALL the details. Especially the bad stuff. Hoarders, grow-ops, bankruptcies, etc., give us everything. Our underwriters want and need to know all the details up front.
Descriptive: Let us know how they got into their current situation. You can never provide too much detail. It also helps us understand how we can help and what sorts of solutions will be required.
Story: Let us know how a mortgage with us will help them get over whatever hurdle they’re facing. Show us that they are on an upward financial trajectory and just need some help through an immediate cash crunch.
Utilize this acronym to craft a TDS for your next alternative lender client. Providing these details is going to assure you find faster and more improved results from your lender partners.
And as always, if you have any questions, give the experts at Kokanee Mortgage a call. With over 40 years of lending experience, our underwriters are always at the ready to help find lending solutions for even the toughest files.