Hard money brokers: Love 'em or shoot 'em?
60% of the loans I look at are submitted to me via loan brokers. Now understand, I do NOT make any residential home loans.
Of the brokers that call me, almost all of them are brokers who primarily only handle residential home loans. These residential loans are made to the home owner/borrower and immediately sold to a big quasi government agency like Fannie Mae or Freddy Mac.
In other words, the broker is only getting a commission on the transaction, and once the loan is closed and sold off to Fannie Mae, the broker could care less about the loan, the borrower, the lender etc.
Believe it or not, most loan brokers don't give a rip about anything associated with the loan, other than closing it and getting paid a commission (I know that sounds strange).
The problem for me is that I am loaning out my money. It doesn't get sold to anyone. I live with the loan (good or bad).
Now if the broker only gets paid if a loan closes, and gets squat if the loan doesn't close, do you think it is out of the question that some of these brokers could be "fudging" some of the information on the loan applicants or property?
U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) reported that mortgage loan fraud in the United States rose 35 percent in the past year.
Smokey Bear says, "Only you can prevent forest fires."
President Reagan says, "Just say no to drugs."
I say, "don't go to jail, tell the truth on your loan."
Of the brokers that call me, almost all of them are brokers who primarily only handle residential home loans. These residential loans are made to the home owner/borrower and immediately sold to a big quasi government agency like Fannie Mae or Freddy Mac.
In other words, the broker is only getting a commission on the transaction, and once the loan is closed and sold off to Fannie Mae, the broker could care less about the loan, the borrower, the lender etc.
Believe it or not, most loan brokers don't give a rip about anything associated with the loan, other than closing it and getting paid a commission (I know that sounds strange).
The problem for me is that I am loaning out my money. It doesn't get sold to anyone. I live with the loan (good or bad).
Now if the broker only gets paid if a loan closes, and gets squat if the loan doesn't close, do you think it is out of the question that some of these brokers could be "fudging" some of the information on the loan applicants or property?
U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) reported that mortgage loan fraud in the United States rose 35 percent in the past year.
Smokey Bear says, "Only you can prevent forest fires."
President Reagan says, "Just say no to drugs."
I say, "don't go to jail, tell the truth on your loan."
Labels: hard money, hard money lender, hardmoney
posted by hardmoney Tom at
9:29 AM
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