Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors., Inc. (LFLS) And The Challenge Of Going National

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When California-based online mortgage loan brokerage recently reported their selected audited 2012 financials, revealing an impressive 64% jump in annual revenues, in addition to the payoff of $98,000 in revolving debt, it was clear that the company was ready to move forward with its goal of expanding to become a national loan origination platform.

In spite of the fact that the residential mortgage loan market is still somewhat encumbered by strict underwriting requirements, a reaction to the country's unprecedented real estate crash, Loans4Less is still going strong. Part of this is due to the fact that the company remains focused on solid conforming mortgages, and consider themselves "conforming and jumbo A-paper experts". Their outlook is optimistic, and they are actively involved in developing a loan origination platform of national scope for joint venture and licensing partners.

Loans4Less obviously knows that expanding their mortgage brokerage capabilities nationally is not as simple as adding more pages to a website. Every state has a unique set of rules relating to residential financing, and the company intends to position itself as the last word for those seeking mortgages and real estate information. Below are just a few of the areas where rules can vary from state to state:

• Loan Flipping - Depending upon how it is defined, loan flipping, the aggressive selling of refinanced loans that are of no real benefit to the consumer, is banned in most states. (This is not to be confused with real estate flipping, which is the purchase and quick resale of properties.)

• Negative Amortization - Loans that require very low payments, but which cause the principal to continue growing, are also banned in many states.

• Prepayment Penalties - Surprisingly, a number of states still allow lenders to include some form of financial penalty if the borrower pays off the loan early.

• Debt To Income Ratio - States vary on how lax lenders can be in determining the ability of the borrower to repay a loan.

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