Difference in Freddie Mac SBL direct lenders

[James Kojo]

For those of you who use agency debt, I'd like to get your opinion. Are are FMAC Small Balance Loan lenders roughly the same?

So, there are only 11 qualified loan originators for SBL. Do you like to work directly with one of them, or do you prefer to go through a broker?

I've met some quality folks here on BP that work for one of the 11. I've also met some quality loan-brokers who seem to know how to navigate all of the subtitles of MFR. I'd be interested in hearing about actual experience.

Thanks!

James Kojo

[Michael Le]

My preference is to go through a loan broker. Although you pay extra for it I think it's well worth it, especially if it's your first few deals. They will know which one of those lenders has an appetite for your specific type of property, in that specific location, at that moment in time. Additionally they would likely be dealing with a different division within that lender, say the wholesale group, because they do a lot of volume. By yourself you're a one off client, whereas to the lender's wholesale group they are a big customer that need to be kept happy. Whereas the lender might not quite go to bat for you against Freddie, they'll do so for the broker. Plus just for peace of mind it's nice to have someone that you know is on your side, guiding you through each step in the process.