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hmetcalf
310 Posts |
 Posted - 04/02/2008 : 2:07:19 PM
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DISCLAIMER: This topic contains co-broker related content. Please note that the term co-brokering is often used in inquires that involve illegal fee splitting or kick backs. This site does not condone these activities. Details related to Respa Section 8 violations can be found here. If you feel the content of this topic may be in violation of any law, please report it to the moderator by clicking the red notification icon above. Thank You.
I know it is not legal to co broker loans governed by RESPA. Is it legal to co broker commercial loans. I ask because there are commercial lenders that have agreements that are "business as usual forms" for co brokering commercial loans. This may not be the correct terminology, but that is basically what it is. Again, I know co brokering residential is illegal. this is strictly for commercial. Any info is appreciated. |
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hmetcalf
310 Posts |
Posted - 04/02/2008 : 2:16:35 PM
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| bump |
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brandie
3257 Posts |
Posted - 04/02/2008 : 2:17:25 PM
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| You are ok as long it is a commercial deal. |
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PinnaclePeters
1076 Posts |
Posted - 04/02/2008 : 2:20:08 PM
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Welcome to the new "Wild, Wild West" of the mortgage lending industry...
Beware of the snakes. |
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brandie
3257 Posts |
Posted - 04/02/2008 : 2:29:47 PM
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quote:
Originally posted by PinnaclePeters
Welcome to the new "Wild, Wild West" of the mortgage lending industry...
Beware of the snakes.
I agree I did find some here. |
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hmetcalf
310 Posts |
Posted - 04/02/2008 : 2:29:48 PM
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Brandie,
I am glad you responded. I trust what you say. I ahve seen many of your responses and threads. Is there a place I can get written documenttation on this? If click on the "here" of the disclaimer at the top of this posting, it is strictly regarding residential loans.
Chris, who are the snakes? lol |
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mortgagemessiah
8003 Posts |
Posted - 04/02/2008 : 2:56:47 PM
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| Yes Harry, it is legal to co-broker commercial loans. They are not covered under RESPA. |
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ComLender
1266 Posts |
Posted - 04/02/2008 : 3:07:08 PM
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| It is legal in commercial. A great way to get more deals, earn experience, and get hosed. |
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hmetcalf
310 Posts |
Posted - 04/02/2008 : 4:26:25 PM
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| Who does the hosing? IS this expected in commercial? |
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EMScommercial
5049 Posts |
Posted - 04/02/2008 : 4:48:26 PM
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'hosing'?
If you are looking for a place to do your co brokering with....
There are many commercial lenders..... each with their own niches and ways of doing things.... there is no standard governmental way of doing things in the 'commercial world' as there is with residential.....
This is why alot of brokers who are unfamiliar with commercial lending either shy away from taking on a client or they take on the client and don't handle the situation correctly.... Our commercial division has grown exponentially by providing excellent service and avenues of financing that take years of experience to obtain....
We handle all the leg work with the lender... putting the files together and getting them off to various lenders.... ordering appraisals.... etc..... don't worry that you don't know what you are doing with commercial - much different world than residential!.... let us work on your deals...
Co-brokering with my company - who likes the challenges of brokering commercial loans - is a good way to keep the client happy and your bottom line happy...
Eclipse Mortgage Services is the proverbial 'head of the snake'... the end of that broker chain.... next step - the lending source....
** We issue a mutual NCND to protect both sides!! **
Not to say others can't help you.... but I will say that not many have the network of lending sources that we do....
Our network of over 325 commercial funding sources which we are direct brokers for (lenders, banks, private money, hedge funds, insurance companies, etc.) - NATIONWIDE ... and Beyond!!! - could be just what you need for your commercial deal(s).....
Alot of our lending sources will not talk to the typical broker off of the street.... our relationships are hard earned....
We can handle your scenario (or any of your coworkers/friends/business associates/relatives/etc...)..... We have under our belt everything from apartment buildings to restaurants to rv parks to auto garages to acquisition and development of residential, retail and office products to casino financing to nascar team financing to from casino boat financing to medical offices.... etc. etc. etc.
The staff of highly trained and motivated of account managers will be your direct contact through out the process….. they will build the file and get it ready for the selected lending source’s underwriter to quickly process through their system….. this saves a lot of time and helps to ensure success….
We let no moss grow under our loans!
Please contact me (us) asap so we can get this taken care of! Just a note... if you call and I am not available at that time to talk, any one of my highly trained account managers can help you as well.
Remember... We only get paid when the thing funds!
Thank you..... |
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godofmortgage
235 Posts |
Posted - 04/02/2008 : 4:51:46 PM
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| yea brother...hosing is the name of the game...commercial is ruled by the brokers and we set the rules of engagement...get some tough skin and get ready to get dirty!! everyone? dialers ready? lets hit those national account numbers. Respa doesnt apply to commercial :) |
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PinnaclePeters
1076 Posts |
Posted - 04/02/2008 : 4:59:46 PM
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quote:
Originally posted by hmetcalf
Chris, who are the snakes? lol
The "snakes" are the ones doing the "hosing".
They typically will lead you to believe that they are a "direct lender" when they are actually just another broker with the right contacts for that particular scenario.
They'll take your origination and present it themselves to a lender as their own "hard work". If you're lucky, they may give you a token fee; or maybe even a point. They'll snag any YSP for themselves.
Trust EMScommercial if you're looking to co-broker.
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1swing4all
2 Posts |
Posted - 04/02/2008 : 5:21:36 PM
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I arrange commercial mortgages. California, Arizona, Florida require licenses to broker but not to accept a referral fee and there is no limit on a commercial loan referral fee. Lenders do not like Broker chains and residential loan agents typically do not know the numbers or how the numbers are achieved when it comes to commercial lending.
It's all about the numbers. If you don't know what DSCR, LTC, Cap Rate or Executive Summary is then you're going to have a real problem. Also fee and non-circumvention agreements are typical. Not only is it about the numbers it's also about who you know. With Interbay, Silverhill and other small balance -high rate lenders leaving the market it becomes imperative that one learns this business.
By the way there is no universal loan application in commercial loans like there is with 1-4 units (1003) I suggest you go to the SBA website and download the SBA's interactive loan application and financial statement. Completing a 1003 only verifies one's lack of knowledge in this business. Some lenders accept it but only as an accommodation.
All the best,
Dan
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1swing4all
2 Posts |
Posted - 04/02/2008 : 7:29:17 PM
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| Business as usual form. It sounds like you're brokering commercial loans and if so then you know there is nothing standard about this industry. I don't co-broker. All the lenders I have spoken and worked with mentioned nothing about some form named "Business as Usual". Any form with this name just needs to be read and understood. If you're in doubt; Ask the lender what the form is used for. The best place for your answer is from the lender who is requesting that you sign it. If you're asking a "What If" question then there will never be a generic answer. Seriously, talk to the lender who is asking you to sign the agreement. The lenders I work with want either a broker agreement, fee agreement with my client, some kind of non-circ agreement or (if I trust them) a verbal agreement for a fee. Why don't you post the agreement on your website and publish the link to this form. This way your answer will come more quickly. |
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hmetcalf
310 Posts |
Posted - 04/03/2008 : 11:37:04 AM
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| Thank you all for your responses. For the short term, I will continue to co broker. But I want to get into this. Do any of you have advice on where to start? |
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ccbank
1267 Posts |
Posted - 04/03/2008 : 12:38:28 PM
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Get it straight. California does not require a license to broker commercial loans, only commercial real estate.
quote:
Originally posted by 1swing4all
I arrange commercial mortgages. California, Arizona, Florida require licenses to broker but not to accept a referral fee and there is no limit on a commercial loan referral fee. Lenders do not like Broker chains and residential loan agents typically do not know the numbers or how the numbers are achieved when it comes to commercial lending.
It's all about the numbers. If you don't know what DSCR, LTC, Cap Rate or Executive Summary is then you're going to have a real problem. Also fee and non-circumvention agreements are typical. Not only is it about the numbers it's also about who you know. With Interbay, Silverhill and other small balance -high rate lenders leaving the market it becomes imperative that one learns this business.
By the way there is no universal loan application in commercial loans like there is with 1-4 units (1003) I suggest you go to the SBA website and download the SBA's interactive loan application and financial statement. Completing a 1003 only verifies one's lack of knowledge in this business. Some lenders accept it but only as an accommodation.
All the best,
Dan
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themortgageartis
415 Posts |
Posted - 04/03/2008 : 12:51:11 PM
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| Is there any site that can lend some insight into various companies. I'd like to avoid the Kennedy Funding's of the commercial world. |
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scottanthony
2993 Posts |
Posted - 04/03/2008 : 1:39:46 PM
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cobrokering is fine...
you also don't need a license to broker a commercial loan.....in fact, you don't need anything to broker a commercial loan other than a lender/broker who's willing to pay you for the lead. |
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rocky007
328 Posts |
Posted - 04/03/2008 : 2:26:56 PM
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| I would never go back to residential. Commercial is tougher because 9 out of 10 inquiries never see the light of day and some in process seem to almost always hit a snag during the review process. |
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