Earn Bigger Paychecks Breaking into commercial lending can improve your bottom line By Tami Butler
If you’ve been a mortgage originator for any length of time, you’ve had your ups and downs in the business. Residential lending rules and regu- lations have risen to a record level of complexity,
and compliance with Consumer Financial Protection
Bureau regulations is nothing to sneeze at.
You may truly love the mortgage industry and find
it rewarding, but those who have moved on to the
greener pastures of commercial lending know it offers
many pluses — one of the most significant being
Breaking into commercial lending is not as compli-
cated as many residential originators may think — if
you know where and how to start. If you want to steer
your mortgage origination activities toward the com-
mercial side, simply follow the steps detailed here.
Choose the right lender
The first step is to partner with a lender that
accepts commercial deals using a “residential style”
submission package — meaning a 1003 application,
credit check and a simple property rent roll. Stay away
from complex documentation requirements, execu-
tive summaries that take experience to perfect, and
convoluted loan packages.
When choosing a lender, a good account execu-
tive, or AE, can make all the difference. Your AE is at
the forefront of your deals. This person will drive and
guide your deals through the lender’s team of man-
agers, underwriters, processors and, ultimately,
AEs don’t have the final say in whether a deal gets
done or not, but the process will go much smoother
if you have an AE you enjoy working with and who
knows how to get deals done. A good AE can prevent
problems in your file submissions before docs get to
underwriting. This translates to more funded deals.
Once you have a good lender, look for deals that fit
that lender’s underwriting guidelines. This streamlines
your marketing and makes it easier to focus on clients
Illustration by Dennis Wunsch
that can generate fast results. Rather than trying to
learn loan programs from multiple lenders and then
having to figure out what each lender needs when you
get a prospect, make it easy on yourself and market a
single lender’s products under your name.
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Tami Butler is a commercial finance specialist and founder of
Sizzling Hot Business. She has been in the commercial lending
industry for almost 20 years. Butler helps entrepreneurs
across the country build successful businesses, coaches bro-
kers and helps investors capitalize on the market and build
their portfolios. She has published nine books and her pro-
fessional career includes two industries. Connect with Butler
on LinkedIn or visit her website at sizzlinghotbusiness.com.
Reach her at (952) 491-0030.