Commercial Mortgage Brokering
For licensed professionals who want to add commercial brokering to their toolkit.
Commercial mortgage brokering can be an extremely lucrative market for Mortgage Agents and Brokers. However, commercial mortgage transactions require a much different skill set and knowledge base than residential mortgage transactions. It can therefore be very hazardous for your clients if you don’t understand what is required in a commercial deal. The commercial mortgage transaction is often viewed as a complex, mysterious transaction that is solely the realm of those with vast experience in the commercial mortgage market; and with good reason. It is a complex transaction. It does not, however, have to be mysterious.
The Introduction to Commercial Mortgage Brokering can be completed either online or as a one day workshop. This course provides an overview of the commercial mortgage transaction Upon successful completion participants receive a Certificate of Completion suitable for framing.
- Module One: Overview of the Commercial Mortgage Market
Learning Outcomes:- Describe the size and scope of the commercial mortgage market
- Discuss the income potential in a commercial transaction
- List and describe the different types of commercial properties
- List and describe the key participants in a commercial transaction
- Describe the key differences between the commercial mortgage market and the residential mortgage market
- List the steps in a typical commercial mortgage transaction
- Module One: Overview of the Commercial Mortgage Market
Learning Outcomes:- Complete a mortgage checklist
- List the information required to be obtained from a potential borrower
- Understand the purpose of a Letter of Engagement
- Module 3: Application Analysis – Income and Appraisalt
Learning Outcomes:- Describe how Financial Statements are used in the underwriting process
- Understand the importance of the Net Operating Income (NOI)
- List what is included when calculating the NOI
- List what is excluded when calculating the NOI
- Use the NOI and the Rate of Return to determine value
- Identify a commercial appraisal
- Module 4: Application Analysis – Ratios
Learning Outcomes:- Define the DSCR
- Understand the importance of the DSCR
- Calculate the DSCR
- Determine the maximum loan amount using the DSCR and the LTV
- Module 5: Application Analysis – Credit
Learning Outcomes:- Differentiate between the credit report a consumer receives and the report an Agent/Broker receives
- List the main credit bureaus in Canada
- Interpret and analyze a credit report
- Explain the components of a credit score
- Recognize a Dun & Bradstreet commercial credit report
- Module 6: Application Analysis – Environmental Assessment
Learning Outcomes:- Define an ESA
- Explain the differences between a Phase 1, Phase 2 and Phase 3 ESA
- Module 7: Submitting the Application and Obtaining a Letter of Intent
Learning Outcomes:- List the different commercial lenders in the marketplace
- List the required contents of an application package
- Identify a Letter of Intent
- Identify a Commitment Letter
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