Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. (LFLS) Interview Recap: CEO Hershman Discusses Current Position, Expansion Strategy On

|Includes:, Inc. (LFLS)

In a recent interview with, Loans4Less.comCEO Steve Hershman laid-out the company's competitive abilities, financial current financial position and plans to expand into a national brand name. LFLS is an online CA mortgage loan brokerage for "A" paper Conforming residential first mortgage programs. The company has maintained stability by working only with qualified buyers with proven income, a practice that fared well for the company when the mortgage crisis hit. While the downturn in the housing market crippled much of the industry, LFLS stayed on pace by continuing operations as it always had by avoiding subprime loans; offering best rate wholesale offerings; providing quality customer services; and delivering on promises made to customers.

In the interview Hershman explained how LFLS competes with big name banks today by offering more competitive rates than big banks and employing a commission-based staff with focused knowledge on the mortgage industry.

"Our posted rates are significantly more competitive … and that's what it's all about - it's about competitive pricing. Furthermore, a retail bank is not going to be as knowledgeable or diverse in the amount of mortgage products available to guide that particular borrower through the process," he explained.

From a financial standpoint, the company has earned some bragging rights. LFLS has no debt, makes 38-40 percent net earnings before taxes, and is a self-sustained, cash flow operation with $1 million in revenues.

"If you study our financial reports and the audited financial statements, there's not a going concern clause in there - our auditors are quite happy that our business is self-sustaining," Hershman said.

Having established a firm presence in California, the company is now looking for joint-venture or partners with several jurisdiction licenses so it can expand the LFLS brand into other states and eventually nationwide.

"We want to turn … into an all-state residential mortgage loan platform," Hershman said. "Our dream is to hook in with a large mortgage bank that has 30 licenses so we can transform the Loans4Less Web site into a national offering."

Because the "Loans4Less" brand name is so general, Hershman said the company has breathing room to expand offerings in the future to encompass car loans and consumer loans in the future, and that the market is ripe for a new presence.

"We think the market is ready for a new brand name. Banks and bigger players are always looking to take over a new branding opportunity because they don't want people taking a piece of their pie," Hershman said.

For more information visit the full audio interview can be heard here:

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