FREQUENTLY ASKED QUESTIONS (FAQ) FOR MORTGAGE BROKERS 

If you've been in the commercial mortgage brokerage business for any length of time, you will agree that it can be very lucrative. If haven't noticed, deals take longer to get done and are more difficult to get done. Truth be told, they're all pretty much a pain! Because the FDIC and OCC are requiring more capital to be held in reserves for loans, banks can not lend as much as they used to with the same amount of deposits at the bank. This is not true of non-bank lenders, credit unions, insurance companies and private lenders, but it still holds true for banks.

In many respects, the speed of many of the loans are directly commensurate with the level of organization of the file. Proper presentation is of utmost importance. Secondary is the ability to interface with the borrower. Many times brokers want to keep 100% control of the deal. They might also be controlling 100% of not getting paid. Our philosophy is, whoever needs to speak to the borrower to expedite the process, let them speak with them and leave our egos at the door.

Some of the frequently asked questions of PetroMAC are:

1. Are you a direct lender?

NO. Over the years we have developed relationships with many lenders, however, in light of today's economy, we spend a LOT more time developing more relationships.

2. Are you paid by the lenders you deal with?

In most cases, we are paid a referral fee on SBA transactions. On conventional loans, we have to have a fee agreement just as a mortgage broker would.

3. How do we (mortgage brokers) get paid?

In all cases, you should have a fee agreement so that you are paid at closing.

4. How much do you charge for origination?

If we are receiving an SBA referral fee, we will not charge additional except in the cases where the loans might be very small. If then usually, not more than a point.

5. How much can we charge for origination?

We are a firm believe in "pigs gets fat… hogs get slaughtered." You are allowed to charge what the borrower will pay, however, we also have the right to refuse working on the transaction if we feel there is too much compensation on the loan lowering the probability of the loan actually closing.

6. Do you charge an application fee?

NO. The only transactions we charge retainers are petroleum deals, no other asset classes.

7. Are we allowed to charge an application fee?

YES. As long as you disclose to us your fee agreement and any costs the borrower has paid.

8. How long does it take to approve a deal?

In today's environment of tighter credit, we like to tell borrowers it will take a least a month to approve the loan. Frequently it is less. It can be more of the borrower owns multiple businesses with multiple financials to review.

9. How can we speed up the loan process?

First we prefer documents that are either emailed or faxed. Actual physical copies of information will slow processing as they will need to be scanned and labeled. By keeping all documentation in an organized and labeled fashion, it helps us by reducing the time that we have to spend organizing the file. Particularly, if you can indicate the structure of what tax return belongs to seller or buyer will help facilitate this process.

10. What do we need to pre-qualify our borrower to see if it's a deal to be considered?

In order to pre-qualify loans faster, we have found that providing a certain amount of information up front helps us expedite the underwriting of a loan. If you can provide us with the following information, it would help us a great deal. Please also complete the online application which has a maximum of 22 questions you will have to answer. 

To find out and pre-qualify for financing and what options are available, please send the following information:

1. Loan Application  
2. Personal Financial Statement 
3. Resume 
4. 2011 Year End Business Financials (Corporate Tax Returns) 
5. 2012 Year-To-Date Business Financials