Frequently Asked Questions about CRElendia
Q. What’s a valid referral?
A. A requested loan amount of at least two hundred thousand dollars ($200,000.00); the Referral is sent to or made available by or on behalf of Purchaser; Referral information can only be submitted one time and from one agent or source; The loan sought cannot be a residential loan; Purchaser must have funded the loan sought by the referral (ie, the loan must have closed). The loan applied for (or funding sought) by the client (or substantially related entity) cannot be in process at the time the preliminary referral is submitted. The date to determine whether a loan has been applied for will be governed by the date the loan application is submitted to the lender.
Q. How does the CRElendia loan referral program NOT cost the borrower additional money on a loan? Won’t the client pay for my referral fee if I use CRElendia?
A. NO! CRElendia’s arrangement with our lending partners is that the fee that is ultimately paid to the referring party is not an add-on cost or pass through to the borrower.
Q. How is this possible, doesn’t the borrower ultimately pay all of the costs?
A. The fee that our lending partners pay for the referral is not a function of the deal. It’s viewed and treated by the lenders as part of their general marketing expenses and overhead costs.
The lenders actually save money by using our program because they can easily quickly grow their loan portfolio without having to add additional sales staff to chase down the commercial loans (think additional loan officers).
This allows the lenders to add loans in exactly the geographical location, type of loan, and size of loan that they want (and the regulators want the lender to have) without having to hire new loan officers, pay additional benefits to them, incur additional marketing and sponsorship costs and then hope those expenditures are successful in generating the loans the lenders want.
We have designed the CRElendia program specifically to benefit your client so that the client can get quotes from lenders and not worry about having to pay extra.
Q. ARE REFERRAL FEES ON COMMERCIAL LOANS LEGAL?
A. YES – 100%!
Click to review resources:
- Regulation X Real Estate Settlement Procedures Act (page 2)
- Restrictions on Payment of Referral Fees for Loan Originations
Q. What’s the difference between CRElendia and a commercial mortgage broker?