NMP - October 2016 - 16

✒ co ia rn l er co the m m er c Pre-Approving Your Small-Balance Commercial Lender Ask three questions before choosing your partner By Michael Boggiano M ortgage lenders perform due diligence before they choose to fund a small-balance commercial deal. It's only fair that you do the same when deciding which lender is best suited for your client's loan. As you search for the right lender option, ask yourself the following three questions to ensure a more positive experience for both you and your client. 1. Who is this lender ... really? Research a lender's corporate structure and identify their parent company if one exists. Traditional lenders-or even those owned by a traditional organization-often have loan committees and restrictions that can delay your client's transaction or prevent it from closing altogether. Once you understand a lender's structure, look for the products and services they provide for mortgage brokers. Customizable collateral and educational tools are evidence of a lender's willingness to help brokers succeed. OCTOBER 2016 n National Mortgage Professional Magazine n NationalMortgageProfessional.com 16 2. Can I rely on this lender? A lender delaying or re-trading your deal can strain your relationship with your client. Try to learn as much as you can about how a lender operates, especially when it comes to their transaction process. For instance, a lender that begins to qualify your client's deal before any underwriting takes place reduces the likelihood of that deal being re-traded later in the transaction. If a lender has a loan committee, find out when they make their decision on a loan. You could put your client in a tough position if a lender's committee issues a denial shortly before closing. 3. What kind of experience will my client and I have? Lenders shouldn't just be in the business of closing transactions. They should also work to create a positive experience for brokers and their clients. Most commercial borrowers want a speedy transaction that allows them to return to business as usual. So be sure to ask a lender about their average closing time and whether or not they conduct any post-closing oversight. Then take a closer look at their customer service record. Check a lender's Web site to see if they share broker testimonials. You can also search social channels and talk to colleagues who close these types of loans. You may find that most negative experiences with lenders are a result of poor communication. Conversely, lenders who manage expectations and communicate clearly and consistently seem to receive the most praise. Asking these three questions can help you identify quality commercial lenders and ultimately create more happy clients. Michael Boggiano is national sales manager for Silver Hill Funding, a small-balance commercial mortgage lender offering nationwide financing from $250,000 to $1 million. He may be reached by phone at (888) 988-8843 or e-mail MikeB@SilverHillFunding.com. SPONSORED EDITORIAL nmp news flash continued from page 15 image and quality of life for Latinos in America. Past recipients of the Latino Vanguard Award include the Honorable Henry Cisneros, Lt. Col. Consuelo Kickbusch and playwright Luis Valdez. Arce is an emerging leader in the fight for immigrant rights and education equality. She is the chairman and co-founder of the Ascend Educational Fund, a college scholarship and mentorship program for immigrants. Arce made national headlines when she revealed that she had achieved the American Dream of wealth and status at Goldman Sachs, all while undocumented. In the heady days of the most astronomical stockmarket rise in Wall Street history, she climbed the corporate ladder-a rare Hispanic woman in a sea of suits and ties. Arce was officially sworn in as an American citizen in August of 2014 and will vote in a presidential election for the first time in 2016. She will use her inspirational story to change the conversation around immigration in her recently published book, My (Underground) American Dream. Arce seeks to challenge the perceptions of what it means to be undocumented and to reshape national dialogue around immigration. Cordray: CFPB Boosted Credit Union Mortgage Lending Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB), has engaged in some self-congratulatory accolades in a speech highlighting the credit union industry's recent increase in mortgage originations. Speaking today before a Washington, D.C., conference hosted by the National Association of Federal Credit Unions, Cordray insisted that the CFPB's rules and guidelines to prevent a reprise of the 2008 crisis proved to be beneficial for credit union mortgage origination. "Our first set of mortgage rules have been in place for over two and a half years, and we are seeing great progress," Cordray said. "In 2014, the first year of our Ability-to-Repay rule on mortgage origination, owneroccupied home purchase mortgages increased by four percent, according to HMDA data, and growth was even stronger last year: home purchase mortgages increased by an estimated 13 percent to 14 percent. And it is notable that credit unions are thriving, with their share of mortgage lending actually growing. In fact, credit unions originated 39 percent more home purchase mortgages in the first nine months of 2015 than they did for the same period of 2014, according to recent data." Although Cordray repeated previous assurances that he did not hold credit unions responsible for the 2008 financial meltdown, he nonetheless insisted that these institutions should be grateful for the regulatory burden that the CFPB placed upon them. "Many credit unions have focused on the compliance burdens of the new rules," he continued. "But they have overlooked the positive benefits of the rules. A safer mortgage market that does not allow 'nodoc' loans, or loans that can be underwritten over misleading teaser rates, is a market that presents more favorable ground for responsible lenders like credit unions. When bad practices are rooted out, good practices are able to thrive, freed from the unfair competition of a race to the bottom. That is exactly what has happened for credit unions over the past two years. In addition, as the Consumer Bureau is building out a vigorous supervision program over non-bank mortgage lenders and mortgage servicers, you are being put on a level playing field with your competitors for the first time ever." Cordray also acknowledged the input from credit unions for encouraging the CFPB to redefine "small creditor" and "rural area," which he insisted was also good news for credit unions. "We raised the loan origination limit for small-creditor status for first-lien mortgage loans from 500 to 2,000 per year, and we stopped counting loans held in portfolio by smaller creditors and their affiliates toward the limit," he said. "Under the new rule, our small creditor provisions now cover all but about 150 of the very largest credit unions." continued on page 26 http://www.NationalMortgageProfessional.com

Table of Contents for the Digital Edition of NMP - October 2016

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