Commercial Mortgage Bankers

[Magera]

There are two major types of commercial mortgage bankers namely the life insurance company correspondents and the CMBS (Commercial Mortgage Backed Securities) lender. Life insurance company correspondents are the most common type of commercial mortgage bankers. A life insurance company often chooses local commercial mortgage bankers in each of the major cities where it wishes to set up business. These commercial mortgage bankers will now act as the liaisons for the life insurance company. This is a most cost-effective alternative to setting up expensive loan offices nationwide.

The other type of commercial mortgage bankers is the true CMBS (conduit) or Commercial Mortgage Backed Securities lender. This kind of commercial mortgage bankers will also fund mortgages with their own money, but they hold these mortgages in inventory after the mortgage is through. They keep the loans in inventory till a sufficient number of loans are collected to create a pool in order to make them secure.