2 lending questions.... - Posted by Jon

Posted by mtg.brkFLA on December 11, 1999 at 14:29:31:

Wholesale lenders work through Mortgage Brokers or Correspondent Lenders. They don’t have a “retail” operation. They don’t advertise to the public. They rely on the above to originate loans for them.

There are " hard money" lenders that service large portions of the country. Their whole gig is a little different from the local “hard money” guys. The local “hard money” guy will lend 65% of the “after repaired value”. The National guys lend on 65% to 70% based on the equity of the home in its current condition. Usually the National guys are good for “foreclosure bail outs” in a Refi situation.
Hope this answers your questions !
mtg. broker FLA

2 lending questions… - Posted by Jon

Posted by Jon on December 11, 1999 at 10:52:57:

(1) What is the difference between wholesale and retail lending?

(2) Are there hard-money lenders that service large portions of the country, or are they generally local? How could I find national hard-money lenders?

Thanks.

Re: 2 lending questions… - Posted by Ed Garcia

Posted by Ed Garcia on December 11, 1999 at 17:09:51:

Jon:

Answers:

(1) Wholesale lending, is just what it sounds like. It’s lending that occurs
between lenders, or from broker to lender. Many times when you take
out a loan with a particular lender or broker, they will sell if off, or broker
it out right.

Retail lending, is where you the borrower get your loan. There are many
retail lenders that have wholesale divisions or programs.

(2) Hard money lenders are usually local lenders who make their loans based on equity.
They receive their funds from the private sector, or private investors.
There seems to be confusion between hard money lenders, and sub prime lenders.
I’m sure that’s what the broker from Florida was referencing to.

To my knowledge there are no National Hard Money lenders.

After saying that, there is a lender named Blackburne& Brown out of Sacramento,
California, that was doing hard money in many of the western states.

Last I heard, they were pushing commercial loans. I have a participant from one of my workshops in Mass.
who was working with them this year. Because of your post, I will call them monday morning for an update.

Ed Garcia