Last week, the American stock market faced sharp drops after China devalued its currency, sparking one of the most erratic weeks Wall Street has seen in years. While the market bounced back, things remain less stable than investors would like. Because of this, mortgage brokers may want to consider expanding their services. Here’s why now is a great time to begin working with non-bankable borrowers who need small-balance commercial mortgages:
The ups and downs on Wall Street this week have made investors skittish, meaning that they’ll be less likely to purchase big-ticket items such as homes. Because of this, residential mortgage brokers might find there’s increased competition for the borrowers willing to brave the uncertainty. Expanding your services and working with non-bankable commercial borrowers will allow you to get through this shifting market while continuing to close loans and earn commissions.
The residential mortgage market is generally an incredibly competitive business. While that might be your bread and butter, it’s a great idea to begin closing small-balance commercial mortgages as well. The competition isn’t as fierce and, in many cases, these loans close faster, meaning you’ll be able to collect your fee that much sooner.
Many residential brokers are still struggling with the fee caps now in place for home mortgages. Small-balance commercial mortgages are sometimes thought of as unprofitable, but closing these types of loans means fewer government regulations and the ability to earn additional income.
The stock market has gained back a significant amount of is losses since last week, but the global economy remains volatile, leading to uncertainty. Because of this, it’s likely that residential mortgage brokers will have fewer customers until consumers feel comfortable again. During this time, branching out into the under served commercial mortgage market will allow you to bring in more business, continue closing loans and increase your earnings.