Run for the Hills

According to the January issue of The Real Deal, many local lenders are going out of business and the industry could shed as much as 25% of it's New York workforce in 2007. That's not necessarily bad news. Mortgage Brokers should be focused on the local real estate market, know the players and the nuances of the local property types.

There are still many people in the mortgage business who are more interested in collecting high fees, than getting the deal done. Still too many order takers, who are little more than telemarketers. By focusing on a sub market, and knowing everything one can about their chosen area of expertise, whether it's new construction, coops, condos or mixed use buildings, one can develop a mortgage business that will be profitable and productive.

Buildings on Leased Land

Generally speaking, you should have no problems getting a mortgage in a building that sits on leased land. Here in New York City, some of the finest buildings are on leased land, whether they are cooperatives or condos like in Battery Park.

Generally speaking, if the lease on the land runs longer than the term of the mortgage, there shouldn't be any problems. Often these leases are for many years, such as a 99 year term. Best to get a copy of the lease, read the terms, calculate any rent increases during the term of the lease and find out the expiration date.

It's not the most common type of building, but it's common enough to finance.

MLN out of business as a lender

Recently I've received 2 faxes from a lender, MLN, which stands for Mortgage Lenders Network. The first one said that they were no longer lending in New York, and the second said that they were working on a solution for the loans that were currently in the works with them.

I've never done any business with them. And don't have the skinny on why they are shutting down exactly, but I found it interesting.

Happy New Year

Here's to wishing you and yours a happy, healthy and prosperous 2007