Closing small commercial loans for non-bankable borrowers is good business, whether you’re a residential broker or a commercial broker. If you’re already doing plenty of business in the residential or larger commercial mortgage markets, it’s still a great time to get involved in the small commercial mortgage business.
Here’s why closing commercial mortgages benefits residential brokers:
It’s a source of extra income.
Closing small commercial mortgages is an easy way to increase your income each year. It can also be a very simple way to earn extra money, since there are small commercial lenders who handle processing, scheduling and closing the loan for you.
It’s an under-served market.
There are many non-bankable borrowers looking for commercial financing looking to work with brokers. This pent-up demand allows brokers in the business of small commercial loans to take on more customers and to earn more money.
There’s less regulation.
Small commercial lenders face less regulation than their bank counterparts, so the process is often smoother for brokers and borrowers. For residential brokers affected by the QM Rule, closing small commercial loans is great because broker fees are not regulated in the industry.
The loans close quickly.
Generally, small commercial mortgages close quickly. Because the industry isn’t heavily regulated, small commercial lenders can underwrite, process and close loans more quickly than the local bank.
Helping non-bankable borrowers to find the commercial financing they need is a great way to attract new business and make more money. You’ll be involved in an under-served market with a lot of demand and few regulations. Also, the quick processing and closing time means you’ll receive your check that much sooner. If you’re a broker looking to do more business and earn more income, small commercial mortgages are a great option.