Halo Companies, Inc. – A Detailed Look at What They Do
Halo Companies, Inc. (OTCBB: GPAX) (“Halo Companies” – “Halo”)
Halo diversifies its business into two categories:
- Origination: such as mortgage, insurance and residential real estate services
- Mitigation: including debt settlement, loan modification and credit repair services
Founded in 2004, Halo achieved right at $5 Million dollars in revenue in 2008, which represents a stunning growth of 506%. In an economy where many companies are struggling to maintain status quo, Halo continues to thrive. The numbers show, as a result of these challenging financial times, more and more people seek professional advice and solutions where their money is concerned.
Halo works to identify those clients will benefit most from its solutions and return the clients to a solid financial base. Halo’s refined technological strategies deliver results that have a profound impact on the lives of its clients and in return Halo’s bottom line.
Halo Companies’ Subsidiaries
Halo Debt Solutions, Inc.
www.halodebt.com
Opportunity: The latest statistics from the Federal Reserve indicate that the total amount of consumer debt outstanding in the United States stands at roughly $2.5 trillion dollars. Based on the latest Census statistics, that works out to be nearly $8,100 in debt for every man, woman and child in America.
Capitalizing on the Opportunity: Halo Debt Solutions, Inc. (“Halo Debt”) is an industry leader in debt settlement services, negotiating and settling various types of unsecured debts, saving clients thousands of dollars.
Results: Halo Debt revenue has significantly increased over the past year top line revenues of $2.02MM for the three months ended September 30, 2009, Halo Debt reported $2.37MM for the three months ended June 30, 2009, and $2.15MM for the three months ended March 31, 2009 as compared to top line revenues of $1.04MM for the three months ended September 30, 2008, $863K for the three months ended June 30, 2008, and $654k for the three months ended March 31, 2008.
Competitive Advantage: Within Halo Debt, a team of industry experts has built and continually maintains a cooperative relationship with creditors to provide the best possible results for each client’s debt situation. To avoid ineffective and costly efforts of an outside collection company, creditors work cooperatively with companies like Halo Debt to reduce a client’s debt balances.
Model: The primary goal is to help clients achieve a debt-free lifestyle. Halo Debt’s programs are developed with affordable payment plans, based upon the client’s personal financial situation. The majority of the payment plans are designed to eliminate each client’s debt in 12 to 48 months. The average negotiated settlement offer is $0.43 (forty-three) cents on the dollar.
Halo Group Mortgage, LLC
www.halogm.com
Opportunity: Over the last year, the world has watched the American mortgage industry teeter on the brink of collapse. Thousands of mortgage company employees have lost their jobs while hundreds of thousands of Americans have lost their homes due to the millions of non-performing loans that were originated in past years.
Capitalizing on the Opportunity: Halo Group Mortgage, LLC (“Halo Group Mortgage”) has not only survived this crisis, but continues to thrive in a down market due to its conservative lending appetite and commitment to high quality loans. Now more than ever, there is an opportunity to rise up as a major player in the mortgage markets.
Results: Halo Group Mortgage recognizes the impact that home ownership has in strengthening both families and communities, while providing fuel for economic growth for our country. By providing the best loan products for its customers, Halo Group Mortgage hopes to increase the opportunities for home ownership within local communities and across the nation.
Competitive Advantage: Halo Group Mortgage has the resources to assist consumers in achieving their financing goals, unlike any other mortgage broker in the marketplace.
Model: Halo Group Mortgage is a full service, Texas-based, mortgage brokerage institution in the retail lending environment, serving strategic U.S. markets for “A” paper residential mortgage loans. Currently licensed in four states, Halo Group Mortgage specializes in partnering America’s top banks with both current and potential homeowners for the closing of real estate mortgage transactions. Halo Group Mortgage can earn up to 5% of the loan amount for providing this service.
Halo Group Realty, LLC
www.halogr.com
Opportunity: The addition of Halo Group Realty, LLC (“Halo Group Realty”) will further Halo’s mission to provide a one-stop-shop of financial services and will allow for the opportunity to maximize profitability through increased synergy between our subsidiaries.
Capitalizing on the Opportunity: Halo estimates that over two-thirds of the customers in the credit repair process are motivated to purchase a new home. Many debt settlement customers are also motivated to own a home in the near future. In addition, many of our mortgage clients begin their process with a pre-approval before choosing a home. Halo Group Realty is a logical progression for a Halo client, regardless of the client’s starting point.
Results: Halo Group Realty will capitalize on the internal lead development of the other Halo entities and as a byproduct will materialize the final step in the home ownership process. This will add additional revenue and increase brand awareness by having Halo signage in yards across the country.
Competitive Advantage: Halo Group Realty has the ability to serve a larger segment of potential homebuyers by leveraging the tools offered by Halo. In contrast, a competing realtor will narrowly focus on the home-buyer who will make an immediate purchase decision. Halo Group Realty will therefore have contact with its customers for a longer amount of time, will generate a larger pipeline of business for its realtors, and ultimately provide more tangible benefits to our customers than are available from Halo’s competitors.
Model: Halo Group Realty’s listings will be charged at 6%. When serving buyers, Halo Group Realty will generate revenue from 3% commissions and any bonuses available for the sale. In addition, Halo Group Realty will earn commissions from referrals to apartment complexes, and build a pipeline of business for Halo Credit and Halo Group Mortgage.
Halo Credit Solutions, LLC
www.halocredit.com
Opportunity: The U.S. Public Interest Research Companies (PIRG) has established that 79% of all credit reports in the U.S. contain errors that affect the credit score, 30% listed closed accounts as still open, and 25% contain errors serious enough to prevent the consumer from obtaining a loan.
Capitalizing on the Opportunity: Halo Credit Solutions, LLC (“Halo Credit”) disputes inaccuracies and errors on behalf of a consumer, over a six-month time frame or less. The consumer exits the program with a guaranteed accurate credit report as verified by the credit reporting agencies.
Results: Halo Credit has found that by correcting inaccurate information, the average customer’s FICO score increases by 56 points. A graduate of Halo Credit is more likely to be approved for financing, qualify for better interest rates, and be deemed “credit worthy.”
Competitive Advantage: Halo Credit uses proprietary credit repair management software to effectively manage thousands of credit disputes. A single credit processor can accurately maintain the dispute process for hundreds of clients at a time. In comparison, a processor could previously manage only a handful of customer disputes per month. As a result, each dispute is handled in the same manner time after time, assuring quality results. And due to the time savings, each customer receives personal attention on his or her account from a trained Halo Credit consultant.
Model: The cost of credit restoration is $199. Credit repair is both an integral part of the overall financial solutions that Halo Credit provides and a critical lead generating product utilized to capture increased national exposure for all the other subsidiaries. With its efficiency, Halo Credit maintains a healthy profit margin on each new client. Fixed costs are covered with a minimal amount of new customers per month. Due to Halo Credit’s efficiency, as customer acquisitions increase the variable costs of scaling up decrease on a percentage basis.
WeCare:
WeCare partners with homebuilders in order to increase the credit worthiness of potential homebuyers through Halo’s services. When a potential homebuyer cannot qualify for a home loan, the client is referred to Halo to settle outstanding debt or restore credit. At the end of Halo’s work, the potential homebuyer is then referred back to the homebuilder through Halo Group Mortgage.
Halo Benefits, Inc.
Opportunity: As of mid-2007, each Halo subsidiary exclusively used direct-to-consumer marketing channels, but was lacking in any type of business-to-business channel. Additionally, each subsidiary individually managed its own consumer marketing efforts with no centralized strategy.
Capitalizing on the Opportunity: Halo Benefits, Inc. (“Halo Benefits”) evolved to manage business relationships and strategic partnerships that positively affect all of the companies under the Halo umbrella. Several key business-to-business marketing concepts and a centralized consumer-based call center were established to facilitate the marketing needs of each subsidiary.
Results: Halo Benefits has implemented two programs that have the opportunity to quickly grow the customer base for each company within the Halo family. These efforts are WeCare and HaloCare.
Model: Halo Benefits has created business partnership opportunities such as the following:
WeCare:
www.wecareonline.org
WeCare partners with homebuilders in order to increase the credit worthiness of potential homebuyers through Halo’s services. When a potential homebuyer cannot qualify for a home loan, the client is referred to Halo to settle outstanding debt or restore credit. At the end of Halo’s work, the potential homebuyer is then referred back to the homebuilder through Halo Group Mortgage or Halo Group Realty.
HaloCare:
HaloCare offers financial solutions through Benefit Groups, Employee Assistance Programs and insurance programs on a per-member per-month (PMPM) basis. The association or group pays Halo a fee for their members to have access to Halo’s financial solutions, creating an additional source of revenue. In return, Halo’s services are offered to group members at a slightly reduced cost.
Halo Loan Modification Services, LLC
www.haloloanmod.com
Opportunity: The latest statistics from the Federal Deposit Insurance Corporation indicate that 6.4 million loans are currently past due or are projected to become delinquent by mid-2010. Recidivism rates are reaching all-time highs at close to 50% for most servicers across the nation which, coupled with overwhelming consumer response, are leaving servicers unable to respond in a timely and efficient manner.
Capitalizing on the Opportunity: Halo Loan Modification Services, LLC has created an innovative and holistic approach to mortgage default resolution that is unparalleled in the industry.
Results: This unique strategy will put borrowers into a systematic and streamlined work-out process establishing affordable, long-term mortgages while achieving an improved return for bankers and investors compared to foreclosure. This type of approach can help stabilize the U.S. financial markets by minimizing foreclosures.
Competitive Advantage: To truly improve and resolve the re-default rates of the consumer due to poor financial decisions and obligations, Halo has developed an ongoing strategy to assist the consumer with unsecured debt burden, credit challenges, and general financial education. This multi-tiered approach will further improve the future performance of the modified loan and provide a fundamental shift in the methods and models previously used and that perpetuated the ever growing mortgage meltdown.
Model: Halo’s loan modification approach adopts the streamlined effectiveness of government sponsored loan modification programs and provides both the borrower and investor complete transparency into the decision making process. The result is consistent and predictable improvement to investors, reduced costs to both servicers and borrowers, and a thoroughly integrated approach to restoring financial integrity.
Halo Choice Insurance Services, LLC
www.halochoice.com
Opportunity: Halo’s extensive client database is expanding every day. As the number of financially-distressed individuals seeking Halo’s assistance increases, so does Halo’s warm market. The ability to offer a highly-utilized product such as Property and Casualty insurance at a cost savings will translate into a better financial position for Halo’s clients and produce another steady revenue stream for Halo.
Capitalizing on the Opportunity: Many of the clients presently utilizing Halo’s Debt Settlement, Credit Repair, Loan Modification, Mortgage and Real Estate companies may be currently overpaying for insurance services. Halo offers its clients competitively-priced insurance products that will save them money by providing a cost savings on monthly insurance premiums already allocated in their monthly budgets. This reduction in premium expense will free up cash flow for financially distressed clients, allowing them to settle their outstanding debt obligations much faster or accumulate and save additional funds for greater long term financial security.
Results: Halo will give clients a better all-around financial position through which to navigate these uncertain economic times. Halo’s current expectation is to attract and engage clients currently utilizing other Halo products, to use Halo’s insurance products – not just at the point of sale – but as ongoing conversions throughout Halo’s various product lifecycles.
Competitive Advantage: By adding a broad spectrum of insurance products to its current product offerings, Halo can now position itself before tens of thousands of clients – clients who are already enrolled in products and services offered by other Halo subsidiaries – and who would welcome a value-added product offering from the company they already know and trust.
Model: Halo Select Insurance Services, LLC is a partner in Halo Choice Insurance Services, LLC, which is currently licensed in Texas, New Mexico, Oklahoma, and Mississippi and represents the lines of hundreds of insurance companies, including Safeco, Travelers, CNA, Progressive, and The Hartford. Halo is therefore not limited to the product and service offerings of a single insurance underwriter, allowing Halo the ability to identify the lowest cost alternative for clients. Specifically, Halo offers Auto, Home, Life, Health and various other insurance products to meet the needs of its clients.
Halo Finanancial Services, LLC
Opportunity: A traditional debt relief program is increasingly limited in the number of states in which it can operate. Halo Financial Services has developed a model that will allow it to operate in 47 states. That is 26 more states in which Halo can now offer debt relief services to consumers. Additionally, a wide gap exists in the marketplace for a debt relief company that provides education and in-depth analysis specific to the consumer’s profile before recommending a solution for that consumer.
Capitalizing on the Opportunity: Few if any debt relief companies have the resources to perform the analysis Halo Financial Services offers. The company provides education & analysis based on a proprietary algorithm that takes into account multiple factors within a consumer’s financial portfolio and history and then weighs them according to their significance to the consumer’s specific situation. Factors include consumer risk tolerance, discretionary income, propensity to repay, debt load, type of debt, state, and region.
Results: Providing services tailored to each consumer increases client satisfaction and therefore increases client retention. Because the consumer is recommended for enrollment based on the unique analysis, the overall rate of program success continues to increase. Clients that do not qualify for the programs provided directly by Halo can still be monetized by Halo through relationships with bankruptcy networks and debt management and credit counseling companies.
Competitive Advantage: Halo’s unique ability to provide multiple solutions under one roof offers more value to the consumer. In addition, Halo’s technology allows the company to manage a higher volume of consumers with an increased efficiency of resources that incorporates the predictability of results.
Model: The primary goal is to help consumers find the right program for their financial profile allowing for the highest degree of success. Halo Financial Services is designed with a minimal upfront fee, very small monthly service charge, and a success fee only after the accounts have been settled and satisfied.
Halo Portfolio Advisors, LLC
Opportunity: In today’s economy, lenders are experiencing an overflow of distressed assets. Many debt servicers are currently overwhelmed with imposed programs that require more resources–such as people, money, and time–than are necessary to be effective.
Capitalizing on the Opportunity: The driving force behind a typical distressed asset is often not a single factor, but rather several contributing factors. When a loan is underperforming, it may be due to other outside influences of financial stress, such as a high unsecured debt load held by the consumer. Halo Portfolio Advisors’ operational support services allow endless opportunities for strategic B2B relationships with major debt servicers.
Results: Halo Portfolio Advisors’ servicing capacity allows for the management of a diverse portfolio of loans. Halo’s technology systems are bundled with transparency, accountability, efficiency, speed, and flexibility. This unique strategy deposits borrowers into an intelligent, results-driven process that establishes affordable, long-term mortgages while also achieving an improved return for lenders and investors, when compared to foreclosure.
Competitive Advantage: Halo’s approach can help stabilize the U.S. financial markets by minimizing foreclosures on the 6.4 million loans that are currently past due or are projected to become delinquent by mid-2010. Halo’s technology can provide deeper insight into the complete financial picture of a borrower – an insight that is unprecedented in the industry today.
Model: Halo Portfolio Advisors leverages the complete Halo business-to-consumer suite of services to market turnkey solutions to lenders.
Halo Companies Inc. National and Regional Recognition
Halo has been recently recognized by Inc. Magazine, Capital One Bank, Comerica Bank’s, and the SMU Cox School of Business.
Halo Companies, Inc. Honored with Celebration of Enterprise Award
November 05, 2009 – Honored by Capital One Bank recently when it received the Celebration of Enterprise Award. The Celebration of Enterprise Award is designed to recognize entrepreneurial spirit and reward those who saw significant economic growth and overcame daunting obstacles to achieve that growth. Halo Companies, Inc. was selected from a group of seven finalists as the winner of their category.
Dallas CFO of the Year Award
October 27, 2009 – Chief Financial Officer Paul Williams honored as the recipient of the Dallas CFO of the Year Award. The award is judged and presented as a part of the Dallas Business Journal’s annual awards program. Under Williams’ financial leadership during the last year, Halo has seen impressive growth and increased shareholder value at a rate of 252%.
Paul Williams has over 30 years of business experience primarily in the capital markets and mergers & acquisitions. The CFO of the Year finalists were selected for being among the most outstanding CFOs in North Texas. Candidates were considered for their contributions to their company’s growth and/or profitability, areas of corporate management in addition to the CFO role, as well as contributions to the community outside the company. Finalists and winners were selected by an independent judging panel consisting of past winners and recommended judges from ACG, the Dallas CPA Society, and FEI.
President Mortgage Orb Person of the Week
August 28, 2009 – Scott McGuane, president of Halo Companies, Inc., was recognized by mortgageorb.com as Person of the Week. The recognition includes a feature of Mr. McGuane on mortgageorb.com where he answers questions about the challenges facing the mortgage industry and provides insight to forward-looking solutions that Halo Companies, Inc. actively seeks to provide.
Scott McGuane joined Halo Companies, Inc. in January to serve as president. Mr. McGuane has more than twenty years’ experience in financial services, retail lending and residential mortgage with companies such as Accredited Home Lenders, Inc., Bear Stearns, Citigroup, and AIG. Before that, McGuane provided consulting for strategic planning, mergers and acquisitions process reengineering and change management across a wide range of industries.
Inc. Magazine Recognizes Halo as One of the Fastest Growing Companies in America
August 18, 2009 – Halo Group, Inc., a subsidiary of Halo Companies, Inc., was recognized by Inc. Magazine this month in the 28th annual issue ranking the fastest growing private companies in America. Halo was recognized as the 533rd fastest growing company in America.
Inc. Magazine publishes a comprehensive listing of the fastest growing companies in America each year. The list is composed of companies that range across industries from construction and manufacturing to financial services. Halo Group, Inc. was recognized as number 16 in the region and 23 in the financial services industry. The list can be viewed in its entirety online at www.inc.com.
Inc. Magazine, delivers advice, tools, and services, to help business owners and CEOs start, run, and grow their businesses more successfully. You’ll find information and advice covering virtually every business and management task, including marketing, sales, finding capital, managing people, and much, much more. Visit www.Inc.com for more information.
Comerica Bank Recognition as Third Fastest Growing Company in Region
June 23, 2009 – Honored by Comerica Bank by earning the third spot in the annual Collin 60. The Comerica Bank Collin 60 showcases the FASTEST growing companies in one of the fastest growing counties in the country. Collin County is one of the fastest growing counties in America, and 15,000 companies call Collin County home, making this a significant achievement to be recognized as the 3rd fastest growing company in this community.
The Comerica Bank Collin 60 has been established to show the world the strength of business in this dynamic growth area of the country. The cities of Allen, Celina, Far North Dallas, Farmersville, Frisco, McKinney, Melissa, Murphy, Plano, Prosper, Richardson and Wylie and many others are included in the search.
Halo Companies, Inc.
One Allen Center
Suite 500
700 Central Expressway South
Allen, TX 75013
Phone: 214-644-0065
About Halo Companies, Inc.
Halo Companies, Inc. is a nationwide holding company based in Allen, TX with ten subsidiaries that operate primarily in the consumer financial services industry including debt, mortgage, real estate, credit, loan modification, and insurance. Halo has been recently recognized by Inc. Magazine, Comerica Bank’s Collin 60, and the SMU Cox School of Business Dallas 100. For more information about Halo Companies, Inc., visit www.myhalogroup.com.
Cautionary Language Concerning Forward-Looking Statements:
Information set forth in this profile contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in Halo Companies Inc.’s filings with the Securities and Exchange Commission. Halo Companies, Inc. disclaims any obligation to update and revise statements contained in this profile based on new information or otherwise.
Disclosure
Pentony Enterprises LLC is STOCKGURU.COM. 10604 Robincreek Lane; Frisco, Texas 75035. (469) 252-3030. Disclosure: Pentony Enterprises LLC was paid thirteen thousand dollars by the company for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk. We will not be buying or selling shares of Halo Companies, Inc. (OTCBB: GPAX) during the promotional period.
