Commercial mortgage broker
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A commercial mortgage broker acts as an intermediary who brokers mortgage loans on behalf of businesses or individuals who needs a commercial loan. The loan is provided by the commercial lender securing a commercial property of the borrower.[1] In developed mortgage markets like the United States, Canada, the United Kingdom, Australia, and United Arab Emirates, mortgage brokers are the largest sellers of mortgage products for lenders.
Some commercial mortgage brokers offer loans but most of them do not provide commercial mortgage loans. A commercial mortgage broker is often used to connect the borrower with potential lenders, obtain multiple quotes, and to manage the financing process.[2]
Fees
[edit]Some brokers charge a fee to the lenders, and others take commission, which they receive from the lenders whom they introduce to borrowers.[3][4]
By country
[edit]In Canada
[edit]In Ontario, commercial mortgage brokers are not required to carry a license. This helps reduce the red tape for commercial borrowers to work with commercial mortgage brokers. The commercial borrowers do not require a layer of regulatory protection because they perceived to be large enough to protect themselves.[5]
In the UK
[edit]In the United Kingdom, commercial mortgage brokers are regulated by the National Association of Commercial Finance Brokers (NACFB).[citation needed]
In the US
[edit]In the United States, commercial brokers are represented by a certificate of National Association of Mortgage Brokers (NAMB): Certified Mortgage Consultant (CMC).[6]
See also
[edit]References
[edit]- ^ "Commercial Real Estate Loan". Investopedia. 29 January 2021. Retrieved 6 October 2021.[1]
- ^ "What Is a Commercial Mortgage Broker and Why Use One?". CloptonCapital. October 1, 2019. Retrieved October 7, 2021.
- ^ Blackburne, George (11 April 2013). "Reasonable Loan Fees in Commercial Mortgage Brokerage". info.c-loans.com. Retrieved 8 October 2021.
- ^ Krischer Goodman, Cindy (8 February 2018). "Here's how much a commercial mortgage broker can make in South Florida". The Real Deal. Retrieved 8 October 2021.
- ^ "Ontario to give license on commercial mortgages". REMI Network. Retrieved 12 October 2021.
- ^ "Sizing up NYC's debt brokerage powerhouses". The Real Deal. Retrieved 6 October 2021.