Commercial and multifamily mortgage originations in 2017 were up 15% over 2016, according to estimates from the Mortgage Bankers Association’s (MBA) Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
According to the data, there was a 9% increase in originations over the third quarter and a 10% increase compared to the fourth quarter of 2016.
“Based on these preliminary numbers, 2017 was a record year for borrowing and lending backed by commercial real estate properties,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “The increase was driven by multifamily lending . . . coupled with the overall growth in originations for commercial mortgage-backed securities and other capital sources. Entering 2018, there continues to be a strong interest to lend by just about every major capital source.”
While overall commercial and multifamily mortgage origination volume is expected to decline slightly in 2018, it’s still a great time for brokers looking to begin closing these deals.
Here’s how you can get started:
Onceyou’ve decided to start closing commercial mortgages, make sure to market those services. Your website, business card, emails and all marketing materials should include that fact that you can help borrowers obtain commercial mortgages.
In order to build a healthy pipeline and close commercial mortgages, you need to develop relationships with referral sources, borrowers and lenders. Whether you’re speaking with an accountant, a property owner or a sales rep for a commercial lender, be sure to focus on how your services benefit them.
Onceyou’ve got a deal to send to a lender, make sure you’ve got all of the information they’ll need to review the scenario. Usually, your lender will need at least a 1003 or commercial mortgage application, a recent credit report with scores and tradelines, a summary of the deal and photos. Every lender has different submission requirements; discuss them with your lender before you start sending in scenarios.