Working as a broker poses a unique set of challenges which can be very frustrating. As a broker, you have to deal with a lender’s origination fees, clients who may not like the idea of working with a middle man, and a lingering stigma against brokers since the financial collapse of 2008. There is a solution to these problems: You can become a correspondent lender. Below are the top 5 advantages of being a correspondent lender:
- Make an undisclosed premium. Because you’re the lender, the premium you’re charging stays between you and your investor.
- Close in your own name. When you’re a broker working with lenders, you have to close deals in the lender’s name. However, once you become a correspondent, you are able to close deals in your company’s name.
- Less fees to the borrower. Brokers are often limited to the amount of money that can be made on each deal because lenders generally charge origination fees to close a deal. As a lender correspondent, you’re well positioned to make more money on each deal.
- Advertise as a lender. Since you have the ability to close loans in your own name, you can also advertise as a lender instead of as a broker. This is beneficial to you because some borrowers might be uncomfortable dealing with a middle man.
- Get competitive pricing. If you’re dealing with a borrower who isn’t eligible for bank financing, finding a rate that that person will accept can be tricky. Every borrower wants the lowest possible rate. Correspondents can often get their clients better rates.
If you’re looking to make more money, expand your business, and make your life a little easier, becoming a correspondent lender could be the right decision for you and your company.
APEX Mortgage Corp. is one of the only nationwide commercial lenders that offer a correspondent lending program. To learn more about it, call APEX at 800-262-2739.