Role of the Mortgage Banker in the Commercial/Multifamily Real Estate Finance Market

Recognition of the Commercial/Multifamily mortgage banker's important role in the marketplace is critical to ensuring efficient allocation of capital, a competitive landscape and a vibrant economy.

BACKGROUND

Commercial/Multifamily (CMF) mortgage bankers play a key and unique role in the nearly $3 trillion commercial real estate finance market.  Property owners and developers require access to capital to provide safe, decent and affordable rental housing, and to develop and maintain office buildings, hotels, industrial buildings and shopping centers necessary to sustain vibrant communities.  Mortgage bankers serve as the bridge between property owners who seek financing and sources of real estate capital; they help to determine the most suitable execution based on the borrower's needs and the characteristics of the property. 

Mortgage bankers expedite and simplify the finance transaction providing services ranging from sourcing product, underwriting, valuation and securing appropriate documentation and debt placement, while bringing broad financial, real estate and market knowledge.  Equally important is the mortgage banker's loan servicing expertise post-closing, as they work to ensure issues such as adequate insurance coverage, leasing, loan assumptions and the borrower's and lender's requests are addressed. Mortgage bankers' varied and diverse business models, accompanied by significant funding source diversification, contribute greatly to a competitive CMF market and result in efficient capital allocation.  As a business-to-business marketplace, the vast majority of CMF capital comes directly from the private sector.

MBA VIEWS

MBA strongly supports the important role that mortgage bankers play in the commercial/multifamily real estate finance debt market.  MBA believes that public policy should promote a competitive industry structure, efficient allocation of capital, and a broad range of capital sources and capital solutions that meet market and borrower needs.

MBA also provides training and education to support a strong mortgage banking industry that strengthens business practices and ethical standards.  For example, MBA's partnership with the Chartered Realty Investor Society (CRIS), a tax-exempt organization whose mission is to recognize ethics-based competency in the global real estate industry for the benefit of the public, advances this objective.

April 2016

Commercial Servicing Resources

Find relevant white papers on commercial/multifamily servicing issues, as well as tools for property inspection and insurance.  Visit our CMF Servicing Resources page.