Archive for Mortgage Originator
Commercial Investing Terms: The People In The Industry
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Birds, trees, streams, and freaking Bears!
Greetings from somewhere in New Mexico….
I spent the early morning out in the forest and enjoyed the wild abandonment of the animals, the incredible sound of the flowing creeks….and the nasty smell of bears. I did not see any bears….but….I could smell them….needless to say….my walk turned into a jog to leave the area.
Anyway…..
Today’s topic is a post of definitions of those professionals that work in real estate. A basic overview especially for those of you who are new to real estate investing. Be sure to check out all the other posts on real estate definitions by skimming the archive post 
list on the right.
Also…….
For those of you on Facebook, you can connect with me @ www.facebook.com/robpowell as well as those of you on Twitter, I invite you to follow me at www.twitter.com/RobAPowell
So….
The real estate investment arena is filled with its own language and often features terms from property law, banking concepts and feudal times. As a continued segment to help you navigate the real estate investment lingo, we will be periodically posting commonly used real estate investment terms and definitions provided by many sources including www.investorwords.com and www.creonline.com.
This posting will focus on real estate professionals and their duties.
Agent
An agent is a firm or individual that has been expressly authorized to act on behalf of a principal in certain transactions. This can 
include completing a financial transaction, acquiring property or selling and servicing insurance policies. Agents do not assume personal liability for actions on behalf of the principal unless that agent is acting beyond the scope of agency.
Certified Mortgage Consultant
A certified mortgage consultant is a certified mortgage broker who has been awarded the highest designation by the National Association of Mortgage Brokers. To achieve certification, brokers must have five years experience, complete a program and pass an exam.
Certified Residential Mortgage Specialist
A certified residential mortgage specialist is a mid-level certified mortgage broker as designated by the National Association of Mortgage Brokers. To achieve certification, the broker must have two years experience, complete a program and pass an exam.
Closing Agent
A closing agent represents the buyer in a real property transaction by handling the closing and legal transfer of title and ownership from seller to buyer.
Evaluator
An evaluator, or appraiser, is a person qualified by training, experience or education to provide property appraisals.
Listing Broker
A listing broker is a licensed real estate agent that contractually secures the right to sell a property on behalf of the owner. Listing brokers differ from selling brokers but may be entitled to share in the same commission.
Mortgage Banker
A mortgage banker originates, sells and services mortgages in the secondary mortgage market.
Mortgage Broker
A mortgage broker matches borrowers and lenders to originate loans. A broker does not originate loans or service mortgages. Brokers may negotiate with lenders for the best possible rates or products for the buyer.
Mortgage Originator
A mortgage originator helps borrowers complete all necessary steps to complete a mortgage transaction. Originators can be brokers or bankers that represent the original lender.
Principal
A principal is the party whom assumes financial and personal responsibility for the acts his or her agent performs on her behalf and under his or her direction.
Title Company
A title company is involved in examining and insuring title claims for its customers.
TheRealWealthBlog.com does not assume responsibility for the content or accuracy of the terms or definitions included. The information is meant for general reference only. As with any transaction, it is important to make sure you do the proper research.
Until next time……rob
Commercial Real Estate Lending Basics: Origination
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So you want a loan? I love to say "NO"
Greetings from the metropolis of Cedar Crest, NM. Where the heat is getting to me.
So….leaving for California tomorrow and looking forward to it. I have yet to pack and I have yet to do anything I need to do before I leave….but what is new?
In the news….
Is Microsoft feeling the heat from Apple? I would say so. Mircosoft if launching retail stores to compete with Apple stores. I bought my first every Mac several months ago after experiencing the iPhone. When I got the iPhone, I could not believe how great it was in almost every facet. So I dumped my Blackberry and embraced Apple’s iphone. Then I asked myself, if the iPhone is this good….maybe the Mac is that much better than a PC. Well…it is. Imagine a computer that does not freeze up on you? Imagine no viruses? Imagine a computer that works all the time? Yes….after seventeen years of the PC….I went against my own rules….left my pride at the door of an Apple store and bought my Mac. I don’t see myself ever going back to a PC….well…”never say never”…but I hope not.
So….
We continue our educational journey into financing commercial real estate. By the way….if you are looking for a great commercial real estate mortgage lender, by all means, give Terry Painter a visit @ www.apartmentloanstore.com. Terry has 
pulled rabbits out of his hat for me. Tell him I sent you and he may do the same for you!
Anyway….on to lending basics….
There are several aspects to obtaining financing for the acquisition of a commercial property. This post will focus on the duties of an originator and outline this person’s crucial role in the commercial lending process.
What does an originator do?
According to investorwords.com, a mortgage originator is a person that oversees the mortgage process by helping the borrower complete the necessary steps to complete the transaction. The successful issuance of a loan is largely due to the skills and experience of the origination and processing teams.
How is commercial mortgage origination different than residential origination?
Information Gathering
For commercial lending, an originator must collect property information, including two years of operating statements, the current rent roll and a brief property description. For residential lending, the originator must collect two years of tax returns, pay stubs and three months of bank statements from the borrower.
Paperwork Completion
For commercial lending, the originator must complete a loan application that has applied appropriate underwritten reserves, calculated the stabilized NCF, supported the derivation of NCF in the executive summary, estimated value and calculated loan to value and debt service coverage ratios and normalized the property’s income and expenses while adjusting for inflation. For residential lending, the originator must complete a 1003 using residential processing software, pulled the borrower’s credit scores, reviewed FICO and calculated debt-to-income ratios.
Additional Steps
For commercial lending, the originator must then submit the loan package to lenders in an acceptable package, receive the final term sheet, obtain signatures and fund the loan. For residential lenders, the originator must determine the lender and appropriate loan, submit the application for preliminary approval, lock or float the loan, order an appraisal, order escrow and title services, submit for final underwriting, order the necessary documents and fund the loan.
The Lender’s Role
For commercial lending, the lender must review the LTV, DSCR and NCF, send a quote to the originator and order the applicable services including an appraisal, environmental, engineering, escrow, title, and UCC. The lender can then fund the loan. For residential lending, the lender reviews the credit histories of the borrower and the prepared 1003, completes final underwriting, prepares and obtains signatures for the necessary documents and funds the loan.
Originators play a crucial role in a finance transaction. When obtaining funding for your next property, make sure to develop a good working relationship with your mortgage originator to make obtaining financing as quick and painless as possible.
Until next time……rob