The delinquency rates of commercial and multifamily mortgages continued to decline in the second quarter of 2014, according to a press release from the Mortgage Bankers Association’s Commercial/Multifamily Delinquency Report.
“Commercial and multifamily mortgage performance continues to strengthen,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “Delinquency rates for loans held by life companies, Fannie Mae and Freddie Mac all remain low, and delinquency rates for CMBS loans continue to decline. Among loans held on bank balance sheets, the 30-90 day delinquency rate is now the lowest in the series history, going back to 1993.”
As the outlook for this market continues to brighten, now is the time for mortgage brokers to begin working with commercial and multifamily borrowers. Here’s what you need to do to get started:
Market yourself as a commercial broker.
It’s important to let potential borrowers, referral sources and lenders know that you’re in the business of commercial mortgages. Be sure to add the word “commercial” to your business cards, email signature, answering machine and ads. You also need a website and a social media presence.
Connect with lenders.
Small commercial mortgages are a niche market, but there are lenders who will finance small commercial properties. Call some commercial lenders in your area, and let them know how you can help them close more loans.
Develop referral sources.
A good referral network is a valuable asset to any mortgage broker. Connect with realtors, lawyers, bankers and accountants in your area; these professionals will have clients looking for commercial mortgages.
Go directly to small business owners.
It’s important to market your services to potential borrowers. Visit the commercial district in your town and introduce yourself to the small business owners. Let them know that you can help if they ever need a commercial mortgage.
The commercial and multifamily market continues to improve and is full of opportunities. In order to take advantage of these opportunities, you need to market your skills in order to connect with lenders, referral sources and potential borrowers. Once you’ve developed these relationships, you can begin closing more commercial loans and increasing your income.