Commercial e-loans - dream or reality?As commercial mortgage brokers, we are always keeping an ongoing dialogue amongst ourselves and our lending sources. The overall consensus of our most recent conversations with a number of commercial mortgage lending institutions Noun 1. lending institution - a financial institution that makes loans financial institution, financial organisation, financial organization - an institution (public or private) that collects funds (from the public or other institutions) and invests them in (regional as well as national) revealed that the flow of quality deals is dropping, while the competition is literally getting knifelike Adj. 1. knifelike - cutting or able to cut as if with a knife sharp - having or made by a thin edge or sharp point; suitable for cutting or piercing; "a sharp knife"; "a pencil with a sharp point" 2. . Additionally, factors such as razor-thin spreads and par-pricing are making it impossible for lenders to achieve "once-upon-a-time" revenue levels. This is further underscored by the overall and currently very volatile interest rate environment. Add to this predicament Predicament Dancy, Captain Ronald must persecute friend to save own skin. [Br. Lit.: Loyalties, Magill I, 533–534] Gordian knot inextricable difficulty; Alexander cut the original. [Gk. Hist. the results of bank down-staffing and mergers, combined with the flood of ill-prepared applications submitted by self-proclaimed mortgage experts, and anyone will understand that something needs to be done. In this increasingly competitive environment, lenders are rushed into a speedy underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. of loans and an even speedier closing. In order to keep up with the competition without affecting the quality of underwriting, the marketplace is currently facing a very real and growing predicament - less deals are getting underwritten in time, and even fewer deals are getting closed. And let us be perfectly clear about this: It is not because of one or the other deal exhibiting a specific lack of quality. Even deals that had all the merits of getting booked never even made it to loan committees - they just fell in between the cracks. We suspect that those "lost opportunities" for generating revenues do account for large sums. So why not turning those lost opportunities into money-making ones, and while you're at it generate additional business as well? How? We asked ourselves that question and came up with a pretty simple (but costly) answer. Introducing cutting edge technological advances to the commercial real estate finance market. We felt that the time had come to tailor A tailor is a person whose occupation is to sew menswear style jackets and the skirts or trousers that go with them. Although the term dates to the thirteenth century, tailor the contemporary Internet-technology that catered almost exclusively to the residential mortgage arena to fit the commercial mortgage universe. Through our residential counterparts we knew that online generated business, also labeled as "c-loans", allow for a loan originator Originator A bank, savings and loan, or mortgage banker that initially made a mortgage loan that is part of a pool. Also, an investment bank that has worked with the issuer of a new securities offering from the beginning and is usually appointed manager of the underwriting to handle about twice as much loan applications versus those traditionally generated off-line. Additionally, and after the original implementation costs are amortized, the cost of originating those loans becomes minimal, plus the lender's processing and underwriting routine is enhanced because both originator and bank are using the same integrated data processing Noun 1. integrated data processing - automatic data processing in which data acquisition and other stages or processing are integrated into a coherent system IDP automatic data processing, ADP - data processing by a computer platform. To make a long story short, the result of our pioneering effort, www.MegaFunding.com, is a one of the first-ever achieved accelerated electronic loan submission and approval processes on commercial mortgages. In addition to providing up-to-the-minute interest rates and daily updated market information, our site is enhanced with an online rate matrix allowing prospective borrowers to obtain a detailed overview of a variety of deal structures. Another proprietary and truly unique feature enables a prospective borrower to submit a real time loan application and to shop it with up to 400 lenders for the best deal and rate structure. And borrowers with no time to spare can instantly pre-qualify for any loan request within one keystroke key·stroke n. A stroke of a key, as on a word processor. key  stroke via our
"Quick Quote", before submitting a full application.
Yes, we hear you - and we agree that the utopia of dot.com companies has also sprouted sprout v. sprout·ed, sprout·ing, sprouts v.intr. 1. To begin to grow; give off shoots or buds. 2. To emerge and develop rapidly. v.tr. businesses that don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. what they're doing. But our site was created and remains administered by commercial loan experts, featuring a support-mechanism that every similar site is lacking. It is a "virtual commercial mortgage broker", not just a loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. service - and we're always open! Under this scenario, real estate owners have the freedom to shop for a commercial mortgage whenever or wherever it's most convenient. In short, we have created an easy-to-navigate and user-friendly environment through which today's lengthy commercial real estate loan approval process has been virtually eliminated. Commercial real estate lending will never be the same again! |
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