Recently, Reagan Hayes of Soundings Trade Only Today interviewed Karen regarding why she started Sterling Acceptance Corporation in 1987 and her thoughts on the recreational finance and marine industries today. The Q&A session will be featured in the February 2016 edition of their magazine. Here is a little insight to the interview:
Q: Can you tell me how you got started and what led you to form your own company?
A: I started at Maryland National Bank at a branch in Annapolis right out of school. I started as a clerk typist working in the floorplanning area, which included cars, boats and motorcycles, and I worked my way up. I became a manager in the area and was transferred to the consumer banking division in College Park and Rockville.Soon I was with child and doing some traveling for the bank. I was transferred to the boat loan department in Annapolis, where we did credit and sales and floorplanning for marine. I wound up being a vice president of the sales operation.
I was traveling a bunch because we had 12 loan production offices around the country. And I just thought, you know, I really can’t do this with a small child, but then thought, I bet I could do this myself, knowing that I had a lot of dealer contacts. I started my own service company, Sterling Acceptance Corp., in 1987, so I’ve been in business going on 29 years now.
Q: What about the health of consumers? Has it been long enough for some of the unfavorable credit fallout to go away? Do you think there will be at least a small population of people who, say, had a short sale in 2009 but have otherwise maintained good credit and financial health who will come back to the market as they can qualify for more favorable loans?
A: I believe so. Right now, if a short-sale history is in the credit report, most lenders will not do the loan. But after seven years — that’s the statute of limitations — they will disappear from their credit history. So as time goes by, assuming they have good credit since, their credit scores will go up and it is likely they will be able to borrow again.
You know there are subprime, tier 2 and tier 3 loans available today from some banks. If you have shown you’ve recovered and you’re stable, you’ve got money in the bank and your credit has been good since then, you can get a loan.
Click here to read the entire Q&A session for yourself!