Released on = March 22, 2007, 2:19 pm

Press Release Author = Jeffrey Sussman

Industry = Real Estate

Press Release Summary = With the implosion of the residential mortgage business,
brokers are looking for new careers. The president of a national commercial mortgage
brokerage explains how they can use their old skills to become successful in the
field of commercial mortgages.

Press Release Body = From: Jeffrey Sussman, Inc.
Marketing Public Relations
249 East 48 Street
New York, NY 10017

For: Nationwide Commercial Funding, Inc.

Contact: Jeffrey Sussman
212-421-4475
marketingpro@aol.com
www.powerpublicity.com

FOR
IMMEDIATE
RELEASE



THE SUBPRIME IMPLOSION UNLOCKS DOORS

TO CAREERS IN COMMERCIAL MORTGAGE BROKERING


Pleasant Grove, UT ---It's certainly not "business as usual" in the residential
mortgage industry. For some time now, the pressure has been mounting in numerous
ways. More brokers than ever are competing for fewer and fewer deals. Loan fees are
getting squeezed. More and more borrowers are turning to online lenders who do loans
very cheaply.
And now, to put the icing on the cake, there's the subprime implosion. Because of
secondary market pressure, the most aggressive loan programs are already beginning
to disappear - and more will certainly follow. Underwriting guidelines are
tightening. Because of this, the pool of borrowers that qualify for loans will
continue to shrink even further.
"One path that leads to increased income is the commercial mortgage business," says
Joe Mardesich, president and CEO of Nationwide Commercial Funding, a national
mortgage brokerage. "It is the ideal arena for accommodating the skills and
experiences of residential mortgage brokers. There are numerous advantages for being
in the commercial mortgage business and I have put together a list of those
advantages."

LESS SENSITIVE TO INTEREST RATES
The residential loan business is highly sensitive to interest rates. The higher
rates, the lower will be the number of homeowners who refinance, take out equity
loans, or consolidate debt. And though the purchase loan business is still
available, it may eventually slow if rates rise to a point where fewer people will
be able to qualify as home purchasers.
In the commercial mortgage sector, however, rising rates do not have the
considerable negative impact that exists in the residential mortgage sector. Here
is the reason: First, most commercial mortgages have balloon payments. Most
commercial borrowers have no choice but to refinance or to sell, regardless of where
rates may be every 5 to 10 years. Both selling and refinancing result in new loans,
which - of course - mean income for the commercial broker! Second, commercial real
estate owners and investors make their money by buying, selling, exchanging,
developing and refinancing. They don't stop doing deals as rates move up or down.
They find ways to have increased interest costs covered by their tenants or other
end-users of their properties. Homeowners, by contrast, want to buy a place in which
to live and must factor interest costs into their budgets. If interest rates put
homeownership out of their reach, they will remain renters, tenants of those who
utilize commercial mortgages!
Third, as indicated above, rising rates can actually increase rental demand and
revenue for the owners of apartments, mobile home parks, and certain other types of
properties. The beneficiary is not only the owner, the developer of apartments, and
the developer/owner of mobile home parks, but also the mortgage brokers who help to
finance those properties.

GROWING COMPETITION IN THE RESIDENTIAL MORTGAGE BUSINESS
In the residential real estate market, more and more realtors are competing with
mortgage brokers. The numbers increase daily. With the internet, people can shop
online and have 5 or 6 lenders or brokers competing for their business with a mouse
click. The loan products you and your competitors sell are all the same, because the
secondary market is so consolidated in the residential industry. The residential
mortgage business has become a frantic "commodity" business, providing revenue to
the lowest bidder.
In the commercial mortgage business, the lowest bidder is not necessarily king.
There is much less competition than in residential real estate. And there are many
portfolio lenders who do not sell their loans to a consolidated secondary market,
i.e. there are a great variety of available programs from one lender or broker to
another. As a result, by specializing and developing a niche, you can develop a
meaningful competitive edge.

LESS REGULATION IN COMMERCIAL
The residential industry is chock full of rules and regulations. Brokers have to
disclose every penny they make, even in a yield spread. The number of disclosures
that borrowers must provide seems to increase daily. Furthermore, licensing laws
and regulations restrict where a residential broker may do business.
On the other hand, in the commercial mortgage business, you don't have to worry
about RESPA. There are no Good Faith Estimates. No TIL's. You can pay referral fees
to anyone, regardless of the service they may perform. Yield spreads are generally
not disclosed. Most states do not require any licensing for commercial mortgage
brokers. (These are observations, not legal advice).

THE REWARDS OF COMMERCIAL
The rewards of the commercial mortgage business can be substantial, impacting income
and lifestyle. Yet, comparatively few residential brokers are reaping the rewards
that await them in the field of commercial mortgages."
As a consultant-coach, who has helped countless numbers of residential brokers
successfully make the transition to commercial mortgage brokering, Joe was often
puzzled by why so few made the transition.
"It is because most brokers begin their careers in the residential mortgage business
and attempt to do the commercial business from a residential frame of reference,"
explains Mardesich. "Unfortunately, that doesn't work. In fact, the better a
residential broker is, the harder it can be to make a successful transition. Some of
the elements that go into making a successful residential broker are precisely those
elements that will hamper a commercial broker. Does that mean all is lost if you
started out as a residential broker? Not at all! A lot of residential brokerage
skills are transferable. You simply need to learn which skills are and are not
applicable, and be prepared to learn not just new program guidelines, but also the
entire process and mindset for being a successful mortgage broker."
As a service, Mardesich prepared a free Tip Sheet on the key differences that should
help residential brokers make the transition to commercial mortgage brokering. One
can obtain a free copy of it by sending an e-mail to
tipsheet@natinonalapartmentfinance.com
Nationwide Commercial Funding, Inc specializes in commercial owner and non-owner
occupied loans nationwide. Its website is www.nationwidecommercialfunding.com

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Web Site = http://www.powerpublicity.com

Contact Details = Jeffrey Sussman
marketingpro@aol.com
212-421-4475
249 East 48 Street
New York, NY 10017