Warehouse Lines For Mortgage Brokers (Pacific One Lending)

Warehouse Lines For Mortgage Brokers (Pacific One Lending)

all right hello this is Kevin blue with Pacific one lending and in this quick presentation I'm going to show you as a broker how you can increase your revenue without increasing the overhead in your business not a lot of brokers really fully grasp or understand and it's a huge opportunity if this is not something you're already capitalizing on and really before I go into the benefits of leveraging a warehouse line I want to kind of talk to you about what we're looking for as a company we are a local company in Huntington Beach we also have a satellite office down in San Diego California and we're only looking for a handful of companies to really partner with and be able to help them grow their business and take their businesses to the next level so one of the first things is with a traditional broker channel you now have to disclose ysp you know before 2008 you didn't have to disclose why is pay you can make what you wanted on a loan whether it be a point two three points a lot of people you know probably stay in the range of a point and a half to three points but you didn't have to disclose ysp and so you know there was no real conversation with the borrower in terms of how much you were or you weren't making you know nowadays with a traditional broker channel you have to disclose the ysp or in other words yield spread premium and you get to experience what is not fun what I like to call Commission shock where the borrower goes is looking at the GFE or looking at the HUD and going you know looking at this section specifically where it says items payable in connection with loan and you can kind of see where my mouse is I'll highlight it on the video for you but you can see the origination charge is in this case and these are two very similar loans in terms of balance but the origination charges six thousand two hundred nineteen dollars and thirty-five cents now there's a credit of five thousand nine hundred and seventeen and that's just so that the borrower didn't have to come out of pocket but really the conversation is you know it's something that you can overcome but it's not a fun conversation to have when your borrower calls you up and says hey what is this six thousand two hundred dollars and I'm getting charged for the loan you know really it shouldn't be any of their business what you're making as long as you're working in the best interest of the borrower you're you know helping them get funding probably helping them with one of the biggest financial decisions of their life either you or one of your agents and you're offering a valuable service the highest ethics integrity and morals I mean why should they know it you're earning you know really they shouldn't so you know with the ysp disclosure you get a lot of these you get this commission shock effect where the borrower you know may feel hey you're earning too much and now guess what they're gonna go shop around and the last thing you want is your borrower shopping around because they think that you're earning too much on a deal or you know maybe they just decide to pull out and withdraw from the loan entirely so with no isp disclosure you can maximize your revenue and you know really earn what you deserve to earn per deal without having anyone question you and without the risk of losing any deals the second thing and there's only three slides by the way so we're gonna go through this pretty quickly like I said there's a long list of benefits I'm just gonna touch on the biggest ones because at the end of the day your goal is to increase your revenue and we're here to help you do that if there's a win-win we determine there's a synergy between our two companies another thing is uncap commissions and this is a big one because a lot of people right now and you know this if you have signed up with a number of different lenders but you can only set your compensation every 90 days right so when you first signed up with a new lender they asked you what did you want your commission to be set at or in some cases they actually dictate to you how much you can earn there's lenders out there that say hey you know what you can only earn 1% ysp and that is the maximum you can earn on any deal okay I mean that is not just absurd compared to how it was a few years ago I mean you could earn there were people my family in particular has been in the industry for 30 plus years I remember you know if you weren't making at least two points on a loan it was like why even bother so a normal conversation with traditional broker channel you would say alright par rate was three and he wanted to earn two and I know I'm simplifying things here but then he would quote it quote the rate at five correct so it doesn't work exactly like that but it's pretty close right so let's say it was five percent if the market went your favor you could earn more with the warehouse line if the market goes in your favor with the traditional broker channel you're still only going to make that two percent if the market goes against you with a traditional broker channel you might actually risk losing that deal because you have to earn that two percent right or whatever your whichever channel you're going through you have to earn whatever that compensation setup it can only be adjusted once every 90 days so if you're you know already talking to a borrower and they're expecting a five percent interest rate but then the market goes up and you haven't locked yet now you're at risk of losing that loan in Ireland it's not like the good old days where you could say you know what I'm just gonna take a small hit I'm still gonna give you that 5% that I promised you I'm gonna take a hit to my commission and maybe absorb you know $1,000 worth of cost out of my commission to still get this deal done and to still earn you know five six ten thousand dollars on that loan that's just not possible anymore with a traditional broker channel you don't have that flexibility but with a warehouse line because it is our own money and it is your own money or treated as your own money when you becoming a broker affiliate with Paquin lending you do have that flexibility so you can say on a particular deal you know what the interest rate changed a little bit I'll take a small hit I'm still gonna give you the rate that I promised you I'm just going to take a smaller Commission or if the rate goes in your favor you can earn that bigger Commission so this is absolutely huge I know a number of brokers that have just expressed this pain to me of losing deals time and time again because the market goes against them or not being able to earn more because you know they quoted something and the market went in their favor so absolutely enormous the last thing that I want to share with you is just a few more highlights of the traditional broker channels versus the pack when lending warehouse line a lot of people think that the only way to the benefits of a warehouse line is to create their own warehouse on it's a common misconception you know the traditional route with a warehouse liner obtaining warehouse line is you know you've got to have a massive net worth right you got to have two to five million of liquid assets you got to show that you have to document it not only that you have to keep it and essentially an escrow account so you can't use that capital and there's costly minimum and non usage fees there's compensation Kath we just touched on that a lot of times you gotta have at least three to five years industry experience and it can take months or even years to get approved I know with our warehouse lines I mean we've been in the business for ten years right we've been recognized by the the mayor of the city of Huntington Beach for providing outstanding service to the community and those are the types of things the types of accolades and the type of experience and Industry reputation that you have to have to get approved with these warehouse lines so it's not something that's easily done the benefit of becoming a broker affiliate a pack one warehouse pack one lending and gaining access to our warehouse lines and all the benefits that go along with it is that you don't have the net worth requirements there's no net worth requirements no minimums or usage fees commissions are uncapped you're in a hundred percent Commission's on the warehouse lines you earn up to a hundred percent on the other 20 plus lenders that we have that you're also inheriting relationships with and that's an important point you don't have to give up your existing relationships with lenders you you simply add back one lending as in an Associated company within the MLS so you know you're allowed to have two companies a lot of people ask that question you know do I have to get rid of my existing relationships the answer is absolutely not you're simply adding to your arsenal you're adding to your capacity to fund loans there's no minimum years of experience now we do want to work with people that know what they're doing and like I said we do have our own process for evaluating potential partners we're not looking to work with everyone we're only looking for a handful of people to really grow with but you don't have these strict requirements and best of all at 48 to 70 two hours to get approved I mean it's literally 20 to 25 minutes probably for most people that are organized to fill out our broker application package it's a very easy signup process and you know if everything goes well and we determined there's a win-win and a synergy between our two companies you could literally start funding loans in as little as 48 to 72 hours no net worth requirements like I said and you know at the end of the day as a broker you really have nothing to lose and everything to gain so you know these are just a few of the ways there's a long list of benefits I want to keep this video short for the sake of time but you know get back with the individual that invited you to watch this brief presentation about the opportunity about the partnership experience with Pacific one lending and and I encourage you to ask a lot of questions get all of your questions answered and I look forward to working with you soon


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