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Director of wholesale originations
Illustration by Dennis Wunsch
The rental-investment market offers opportunity
and stability during uncertain times
Residential mortgage originators have enjoyed the low interest
rate environment in recent years that has provided healthy
pipelines driven by purchases and enhanced by renewed refinance
activity. At the time of this writing, however, it is anticipated that
rates will start to rise in the coming year. Everyone hopes this will
not materialize, but now is maybe a good time to consider what
options will be available if it does occur.
In a market driven by rate sensitivity, any notable increase could
have a great effect on traditional borrowers and their efforts to
purchase new homes or refinance existing homes. Smart loan
originators will both recognize this possibility and begin making
plans to replace business lost to a rising tide of interest rates. >>
View these articles and more at
“Commercial Loans Are a Golden Opportunity,”
“Checking Out the Commercial Side,”
Mark B. Besharaty,
“Seek Refuge When Rates Rise,”
Ski Swiatkowski is vice president of business development
for Silver Hill Funding, a small-balance commercial mortgage
lender offering nationwide financing from $250,000 to $2 million. Visit silverhillfunding.com for more information. Reach
Swiatkowski at (844) 346-2907 or email@example.com.
3 Clear Paths to
Residential originators have choices when looking
to diversify their business
By Ski Swiatkowski
With the midway point of the year fast approaching, residential origina- tors across the country are taking a step back and evaluating their
performance in the first six months of 2017. Thanks
to rising interest rates and dwindling home-loan
applications, it’s a safe bet that many mortgage professionals have earned less than they did at this point last
year. If they’re going to survive, these originators will
need to do something to change that in the second
half of 2017.
The problem is that supplementing a mortgage
company’s product offerings with new products and
capabilities often requires an additional investment
of time and resources that most originators — especially those in smaller companies — simply don’t have.
To make a difference to their bottom line in the near
term, originators must identify a strategy that, while
inexpensive and easy to adopt, still provides immediate opportunities for success.
That’s why adding small-balance commercial mortgages makes sense for so many residential mortgage
companies. When planned properly, this market can
generate additional revenue without distracting
loan originators from their primary role and without
committing their companies to additional overhead.
An additional benefit is that most originators are
already being offered these types of transactions
from past clients and referral partners or, possibly,
they have potential deals waiting for them in their
The best part? Originators can choose their level of
involvement, which is important because every company has a different amount of available resources and
commercial expertise. Instead of needing to find people
with the necessary talent to create separate operating
systems, companies who partner with a quality commercial lender can easily choose what level of commitment they wish to make.
Here are three ways that originators and mortgage
companies can incorporate commercial lending into
their existing business, ranked from lowest to highest
level of involvement.
1. Refer loans to a lender partner
Residential mortgage companies already see plenty of
commercial deals, so why not earn additional income
by collecting some basic information and referring
these deals to a commercial lending partner that can
carry the ball forward.
Make no mistake: Commercial lending isn’t easy, but
simply referring commercial opportunities to a trusted
partner is the easiest way to break into the industry.
Originators don’t need any additional training to
get started and their work is concluded before the
commercial transaction begins — meaning they can
avoid the more challenging aspects of processing the
Of course, the amount of income a mortgage com-
pany can generate through referring commercial deals
is less than what it could make if it brokered the trans-
actions. Senior management must decide which is
more important — the amount of income they can
generate through commercial loans by devoting more
resources to the venture, or a small additional revenue
stream that doesn’t take focus away from their resi-
If a company wants to begin referring commercial
deals, it is crucial to partner with a trustworthy commercial lender. The ideal partner is one that makes it easy
for residential originators to refer transactions and
generally works to build strong relationships. At the
same time, originators will want to identify a commercial lender that can be counted on to close deals and
provide positive experiences for everyone involved.
After all, in a working referral relationship, many
reputations are on the line during each transaction.
When mortgage companies align with the right
lender, they can create strong referral relationships
that generate income without committing to large
costs or investments of time.
2. Broker commercial deals
Mortgage companies that want to increase the income
they can generate from small-balance commercial
loans may wish to broker such transactions. This step
requires some additional resources, but the opportunity for a higher return makes the investment worthwhile for many residential organizations.
It is important to note that brokering commercial
transactions is different and more complicated than
closing residential deals. But if originators focus on
small-balance transactions, which commonly involve
loan amounts of $2 million or less, the transition
won’t seem as drastic. In addition, the most common
small-balance commercial deals involve multifamily
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