Bcmma presentation-final-selling-a-b-deal
-
Upload
richard-earles -
Category
Documents
-
view
265 -
download
0
Transcript of Bcmma presentation-final-selling-a-b-deal
How to Prepare a MIC Mortgage Application for your Lender How to Sell a MIC commitment to your Clients
Presented by:
Will Granleese: M.B.A. Business Development Manager Antrim Investments
Christine Perkins: BA AMP Business Development Manager Cove Mortgage
Why you’re all here…
• Sold out Event !! • Today’s Market
• Mortgage Rule Changes push more deals to MIC Lenders
• Partner with a Professional Organization • Set you up for Success
Agenda
• Difference between MIC’s and Private Lenders • Identifying a MIC deal • The Underwriting Process • What you see on a MIC commitment • How you get paid • Presenting a solution to your client • What happens when the file is instructed?
MIC value proposition
• Short term solution for your clients who are experiencing difficulties receiving approval at traditional lenders
• Our fiduciary Duty… ( Provide clients with the best possible solution)
• Focus on solutions not rates… • Short term (typically 1 Year) • Goal to have clients migrate back to institutional lenders within 1 or
2 years
The Difference between MIC’s and Private Lenders
• Professional organizations as opposed to individuals • Knowledgeable Underwriters vs. Limited Knowledge • Fast turnarounds • Committed to the deal as presented…will not back out • Detailed lending guidelines
• Registered with FICOM • Clear renewal policies
Identifying a MIC deal
Duty to client is to try institutional lenders first. • Some clients fall through the cracks • Self-employed • Mortgage Rule Changes • Unique Properties (Co-op, leasehold) • Damaged Credit • Pre-paid Mortgage • 2nd and 3rd Mortgages
Identifying a MIC deal
• Inter-alia • Land Deals • Unique Locations • Quick Close • Debt Consolidation • Foreclosure Relief • Vendor Take-Back Mortgage
Identifying a MIC deal
The “Story” makes the deal. • Yes they are self-employed… BUT… this is why it’s a deal…
• Lots of equity • Back to work after injury • Many other reasons
How to Increase your chance of an Approval
• Know your client • Focus on the solution not the rate • Be upfront with the real reason the client needs the mortgage
• Know your Lender • Each MIC has a unique product offering • Review the file with a MIC underwriter before submitting • Application should be complete
The Underwriting Process
• The more equity the less stringent the underwriting • Max 75 – 80% LTV in most cases
• On higher LTV Deals MIC’s are more concerned with credit • Capacity • Collateral • Character • Capital
The Underwriting Process
Underwriter looking for the following • Application – e-mail or Filogix • Bureau • Appraisal – Check approved appraiser list for each MIC • Story – What makes this a deal • Exit Plan (some MIC’s) – How will the client migrate back to
prime rates in the future? • Geographic Location
What’s on the Commitment
• Higher Rates than Traditional Lenders • Lender Fee / Broker Fee • Less Red Tape • Less Docs and conditions • Faster Closings • Good Faith Deposit • Appraisal • ILA may be required
How you get paid
• Earn More than ‘Bank’ deals • 1 – 3% Lender Fee • 1 – 3% Broker Fee
* Fees are negotiable depending on the size and challenges of the file
• Majority of Brokers charge a min. $1000 fee
• Paid on funding directly from lawyers
How to Present the Commitment
Before you Submit the deal…
• Set expectations in the beginning…Do your clients know the rate and fee will be higher?
• Make sure you have not promised bank rates. • Have you reviewed the reasons why traditional financing is not
available at this time? • Present the commitment as a solution
Presenting a solution to your client
This Mortgage is a Solution…
• They can move forward • Make a positive change • Clean up credit to reduce monthly payments • Make a purchase now • Not lose a down payment
Presenting a solution to your client
• Don’t focus on rate…focus on solution
• MIC’s are open to some level of negotiation… might be some wiggle room depending on the file
• Limited pool of capital… decisions must be made quickly. Cannot hold rate and funds for extended period.
What happens when the file is instructed?
• May require Certificate of Independent Advice • Client responsible for Legal Costs
• Title Insurance
• Funding • Very quickly… • Title – leased land, prior charge confirmation… • Lawyers - month end • Conditions – appraisal, Form B… • Sometimes within 24 hours
Other considerations…
• Respect a lender turndown • Avoid sending the deal to multiple MIC’s at the same time
• Know your lender and know the file to increase closing ratios • Avoid contacting the lenders lawyers to instruct changes
Contact info:
Will Granleese: M.B.A. Business Development Manager Antrim Investments [email protected] 604.530.2301
Christine Perkins: BA AMP Business Development Manager Cove Mortgage Ltd. [email protected] 778-988-8940