If this is what I think it is, it’s something I saw a long time ago. The way the one I saw worked, it was set up for if you meet all the bank’s loan requirements otherwise but the bank is short of funds to loan. Which usually doesn’t do any good for trying to get a loan for real estate, as the funds are not “available” to pledge as collateral, only to assist the bank with its funding issues.
A good loan broker would do you a lot more, and in most cases the fee would not be as high. Plus you’d get a lot more for your $$$.
PS: Please turn off the caps lock. Looks like you’re SHOUTING.
I HAVE A PUBLICATION (SOLICITATION) THAT OFFERS COMPENSATING BALANCES TO BE PUT IN OUR NAME “SIMPLY” FOR PAYING THEIR FEE.
HOW DOES COMPENSATING BALANCES WORK? IS IT THAT EASY TO SIMPLY PAY SOMEONE A FEE, AND HAVE THEM PUT UP A COMPENSATING BALANCE IN MY BANK AND THEN I USE THAT BANK BALANCE AS A “TOOL” IN SHOWING A BANK THAT I HAVE MONEY TO HELP ME GET A LOAN ON REAL ESTATE? SOME BANKS SAY THAT YOU SHOULD HAVE “X$” IN THE BANK AS “RESERVES”–SO I WAS WONDERING IF IN FACT COMPENSATING BALANCES IS IN FACT A WAY TO DO THIS. SOMEONE HELP–PLEASE!!