1 00:00:17.145 --> 00:00:18.445 So backdooring is basically 2 00:00:18.445 --> 00:00:22.005 where a broker submits a deal over to a lender or a funder, 3 00:00:22.345 --> 00:00:24.365 and then ultimately at some point during the process, 4 00:00:24.635 --> 00:00:27.685 that file then creeps back to another brokerage firm, 5 00:00:27.685 --> 00:00:31.005 basically purchasing the data from that said funder. 6 00:00:31.225 --> 00:00:33.365 Um, now that might necessarily be coming from the funder 7 00:00:33.365 --> 00:00:35.965 itself, but maybe just a bad employee like an underwriter 8 00:00:35.985 --> 00:00:37.325 or maybe the ISO manager. 9 00:00:37.705 --> 00:00:39.285 And then ultimately what then happens 10 00:00:39.285 --> 00:00:40.565 after that is our merchant 11 00:00:40.565 --> 00:00:42.685 that we submitted then gets called from a bunch 12 00:00:42.685 --> 00:00:44.205 of different people because they're buying the data 13 00:00:44.205 --> 00:00:45.365 and they're buying the information 14 00:00:45.665 --> 00:00:47.565 and then people are kind of just down their throat saying, 15 00:00:47.565 --> 00:00:48.965 Hey, I know you applied, you know, 16 00:00:48.965 --> 00:00:49.965 could you use any more funding? 17 00:00:50.195 --> 00:00:52.725 Yada, yada, yada. So that's mostly like the basic definition 18 00:00:52.725 --> 00:00:53.885 of what backdooring is. 19 00:00:58.785 --> 00:01:00.845 So we have a lot of good relationships with our, 20 00:01:00.845 --> 00:01:01.925 with our merchants, right? 21 00:01:02.105 --> 00:01:04.325 So what a lot of times happens more than not is 22 00:01:04.325 --> 00:01:06.645 that if it happens is that the merchant will say, Hey, Ryan, 23 00:01:06.705 --> 00:01:07.925 or hey Corey, or Hey Matthew, 24 00:01:08.525 --> 00:01:09.565 somebody closing the deal for my team. 25 00:01:09.705 --> 00:01:11.445 You know, I have all these different guys calling me, 26 00:01:11.705 --> 00:01:13.565 you know, saying they're either from Lexington 27 00:01:13.625 --> 00:01:15.485 or Lexington, couldn't help me out, 28 00:01:15.485 --> 00:01:17.805 or just saying, you know, we got your file from somebody, 29 00:01:17.985 --> 00:01:19.045 you know, how did this happen? 30 00:01:19.385 --> 00:01:20.765 So that's mostly more times than not, 31 00:01:20.765 --> 00:01:21.805 kind of how we find out. 32 00:01:21.945 --> 00:01:23.405 But other than that, it's kinda like a hush 33 00:01:23.405 --> 00:01:24.645 hush, keep secret thing, right? 34 00:01:24.825 --> 00:01:26.845 Um, more times than not, we're probably not finding out, 35 00:01:26.845 --> 00:01:28.725 which is like the hor most horrible thing about it. 36 00:01:28.985 --> 00:01:30.805 Um, so that's usually how we'll find out is one 37 00:01:30.805 --> 00:01:32.365 of our trusted merchants will be like, Hey, Frankie, 38 00:01:32.635 --> 00:01:34.685 ever since you guys submitted us, you know, 39 00:01:34.735 --> 00:01:36.525 we've been getting a whole bunch of different phone calls, 40 00:01:36.545 --> 00:01:38.725 people reaching out, saying they're with you guys, not 41 00:01:38.725 --> 00:01:40.045 with you guys, don't work with you guys. 42 00:01:40.345 --> 00:01:42.605 So that's mostly kind of how, how we end up finding out. 43 00:01:48.075 --> 00:01:50.365 Once in a while we'll shoot out a file maybe just 44 00:01:50.365 --> 00:01:52.045 to like one or two lenders, right? 45 00:01:52.105 --> 00:01:54.285 And then if we hear something back, we're, 46 00:01:54.295 --> 00:01:56.405 we're narrowing down the list a little bit, right? 47 00:01:56.665 --> 00:01:58.245 Um, another thing that we like to do is 48 00:01:58.245 --> 00:01:59.965 that the second the file gets submitted, 49 00:02:00.265 --> 00:02:02.045 we ha we straight up tell the merchant, we're like, 50 00:02:02.045 --> 00:02:03.765 Hey listen, you know, we submitted you 51 00:02:03.765 --> 00:02:04.965 to a few of our different lenders. 52 00:02:05.105 --> 00:02:07.605 You know, that does trigger, you know, a credit pull, 53 00:02:07.605 --> 00:02:09.205 a soft credit pull, and now you know, 54 00:02:09.205 --> 00:02:11.125 other people might be buying that information, buying 55 00:02:11.125 --> 00:02:12.445 that data, just like if you were to apply 56 00:02:12.515 --> 00:02:14.085 with a car dealership and they sent you 57 00:02:14.085 --> 00:02:14.805 to a few different places 58 00:02:15.105 --> 00:02:16.245 to, you know, see if you could qualify. 59 00:02:16.625 --> 00:02:18.805 So we let them know that on the upfront, um, so 60 00:02:18.805 --> 00:02:20.725 that they'll be honest with us if it does happen, 61 00:02:20.945 --> 00:02:22.045 and so that we're aware of it 62 00:02:22.105 --> 00:02:23.525 and we can try to mitigate against this 63 00:02:23.525 --> 00:02:24.605 as best as humanly possible. 64 00:02:24.605 --> 00:02:26.085 So that's the steps that Lexington kind of takes. 65 00:02:26.425 --> 00:02:29.045 So kinda let the customer know and so that we know as well, 66 00:02:35.045 --> 00:02:36.245 A few things that you could do is you could 67 00:02:36.245 --> 00:02:37.405 always tighten up your lender list. 68 00:02:37.405 --> 00:02:38.405 So that's some stuff that we did, 69 00:02:38.405 --> 00:02:40.845 and a lot of people in our space in our industry are like, 70 00:02:40.845 --> 00:02:43.565 Hey, we have 75, 80 different lenders on our platform, 71 00:02:43.565 --> 00:02:45.565 but I strongly, strongly disagree with that, right? 72 00:02:45.785 --> 00:02:47.085 Um, so we tier our lenders out. 73 00:02:47.105 --> 00:02:49.885 So Lexington personally works with about 30 to 35 lenders, 74 00:02:50.215 --> 00:02:52.285 about 10 to 15 on the eight tier, about 10 75 00:02:52.285 --> 00:02:54.965 to 15 on the beat tier, and about five on the c 76 00:02:54.965 --> 00:02:56.005 and d tier, right? 77 00:02:56.005 --> 00:02:57.885 So basically what we'll do is if it's an eight tier file, 78 00:02:58.065 --> 00:03:00.405 um, we'll then shoot it out to maybe like three to five 79 00:03:00.425 --> 00:03:03.365 of our, of our most trusted a tiers that fits into the box. 80 00:03:03.665 --> 00:03:04.885 Um, and then ultimately if you're doing that, 81 00:03:04.885 --> 00:03:06.085 you're not setting it to 20 different 82 00:03:06.085 --> 00:03:07.245 people at a, at a time, right? 83 00:03:07.355 --> 00:03:09.405 Then you're mitigating your chances of that happening. 84 00:03:09.785 --> 00:03:12.005 So basically just tearing out your lenders is gonna help you 85 00:03:12.005 --> 00:03:12.885 give the best shot to it.