The Nest

NestApple's Real Estate Blog

Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.

Best mortgage banker and mortgage brokers in NYC in 2021

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To get a mortgage in NYC, some home purchasers’ first reflex is to check Bank of America’s mortgage rates online. More broadly, you can reach out to either an (i) mortgage banker or an (ii) mortgage broker.  The difference between amortgage banker at chase mortgage broker and a banker is that a mortgage broker cannot lend any money. The broker merely is originating and “brokering” a loan by selling it to a bank. In other words, a mortgage broker is a middleman. The broker has limited skin in the game. On the other side of the spectrum, a mortgage banker will typically represent a traditional bank lender like Wells, HSBC, JPMorgan Chase, or Bank of America. A bank will typically commit its capital to fund a mortgage, even if they securitize it later. Inversely, a mortgage broker is shopping for the best loan among the community of lenders.

In terms of economics, mortgage brokers usually get paid either by the borrower or by the lender. They may earn 1 to 2% of the balance they originate and sometimes more. However, we hear that the payout keeps decreasing to around 1% or even less due to higher competition from fintech and direct lenders.

It is challenging for mortgage brokers to operate in a market like New York City, where big banks have such a strong foothold. Indeed, it takes a couple of phone calls for bank clients to talk to the bank’s mortgage lending division.

First of all, we have to disclose it is illegal to pay referral commissions between real estate brokers and mortgage bankers/brokers. We are happy to make introductions to the best ones out there, “no strings attached.”

  1. Why should I work with a Mortgage Broker in NYC?

  2. Why should I work with a Mortgage Banker in NYC?

  3. Shall I use a Correspondent Bank Lender in NYC?

  4. How to Become a Mortgage Broker in NYC?

  5. How to Become a Mortgage Banker in NYC?

  6. The best mortgage bankers and mortgage brokers in New York in 2021

 

Why should I work with a Mortgage Broker in NYC?

A mortgage broker is a middleman between a borrower and a lender. However, there can be benefits to using amortgage banker and broker mortgage broker. We advise NestApple clients to go through a mortgage broker in suburban areas where large banks do not have a robust physical foothole. We also recommend using brokers for harder to originate mortgages. This can include entrepreneurs, foreign buyers with no green card or VISA, investment property, construction loan, etc… In those cases, it is sometimes easier for a consumer to enlist a mortgage broker’s help to shop around for the best option out there.

NestApple also recommends using a mortgage broker for first-time homebuyers who have no idea which banks are competitive in their area. The mortgage broker keeps updated records from banks for the best rates and products.

Why should I work with a Mortgage Banker in NYC?

We like the large bank lenders in the heart of New York City. We also recommend the large lendingsigning a contract in nyc institutions for a plain vanilla profile with a stable income, high FICO, and a W9. For those profiles, banks will aggressively compete to originate those mortgages. In NYC, potential buyers typically have their banking relationship with big banks due to a robust physical presence near their home or work. For a primary residence, savvy NYC buyers know that they may get a better rate directly with a mortgage lender.
Most NYC home buyers and owners are also familiar with big banks’ names, which will typically be very competitive.
Lastly, mortgage brokers are in closer contact with the bank mortgage underwriter and decision-makers. For example, when working with a mortgage broker, you may not hear back for weeks on your commitment letter. The mortgage broker is waiting to hear back from the bank’s underwriting department. The banker will typically have easier access to their underwriter and sometimes talk at the coffee machine. Also, the mortgage banker may have more influence throughout the process and seek exceptions for specific concerns.

Shall I use a Correspondent Bank Lender in NYC?

A Correspondent Bank is a bank that temporarily funds its mortgage originations through “warehouse lines of credit” from other banks. In othersigning a mortgage words, this institution will draw on a line of credit to originate and fund a mortgage. However,  it will try to sell the loan immediately after closing. Once the mortgage got sold to another bank, the correspondent bank will use the proceeds to pay off the revolving line of credit. Sometimes the correspondent bank will sell the mortgage to Fannie or Freddie.

In short, the institution takes the credit risk for only a limited time before they sell the loan off its balance sheet.  It does not service the loan, where most banks make money with late fees, prepayment fees, etc. I

This is a “flow business.” The more they originate, the more they can recycle. Once they pay off the credit line, the correspondent bank is free to do it all over again. It draws on the line again to fund a new mortgage.

How to Become a Mortgage Broker in NYC?

A mortgage broker solicits, processes, places, or negotiates residential mortgages. This responsibility requires a specific registration by the New York State Department of Financial Services with the following requirements.”
  1. Good standing in the community
  2. Two years of relevant experience or education
  3. A credit report
  4. A set of fingerprints and a $99 fingerprint fee
  5. A $1,500 investigation fee
  6. The submission of a surety bond or a pledged deposit of $10,000

Can a Real Estate Broker also become a Mortgage Broker?

Yes, in New York State. However, he must submit a dual agency affidavit to the NYS Department of Financial Services. Under Article 12-D of the New York Banking Law and Section 443 of New York’s Real Property Law, a mortgage broker who is also a real estate broker in the same residential real estate transaction must disclose dual agency to all parties.
People employed by licensed mortgage brokers or mortgage bankers do not need a license of their own

How to Become a Mortgage Banker in NYC?

A mortgage banker gets licensed by the New York State Department of Financial Services to make residential mortgage loans. The requirements are more brutal to become a mortgage banker and are as follows:

  1. A net worth of at least $250,000
  2. Have a line of credit of at least $1 million
  3. File a surety bond for at least $50,000
  4. Employees must have at least five years of experience in making residential mortgage loans.
  5. A demonstration of good character
  6. A background report ($3,000 investigation fee)
  7. A set of fingerprints ($99 fingerprint fee)

The best mortgage bankers and mortgage brokers in New York in 2021

jason ritchie

Jason Ritchie at HSBC (contact)

Jason, a native New Yorker, has 16 years of residential mortgage lending experience, with 12 years rooted at HSBC. He is the top producing LoanOfficer for HSBC on the East Coast. Jason’s success is contributed to his impeccable service, ability to understand complicated finances, and his consistency. He offers a wide range of mortgage programs such as 80% financing up to $5 million, which includes multi-family lending, interest-only, and non-traditional lending. Don’t hesitate to call him and pick his brain – 646-676-8603  

Burke Purcell at Bank of England (contact)

burke purcellBurke runs the NYC metro region for Bank of England Mortgage and offers creative mortgage programs which are very different than those of traditional lenders.   Many programs do not require tax returns, including loans for self-employed borrowers, investors, and high net worth individuals.  He offers jumbo mortgages with as little as 5% down, piggyback 1st & 2nd mortgages, loans for foreign buyers, non-warrantable condos, refinances with unlimited cash-out, and underwrites loans using a common-sense approach.  
 
 
 

Eli Sklar (contact)Eli Sklar

Loandepot went Public in February 2021 and is the #1 retail mortgage banker in the country. TeamSklar is #1 in NY loan originators, specializing in 30-day closings | 90% financing with no mortgage insurance up to $2MM loan amount | 80% financing up to $5MM loan amount | 97% financing up to $822,375 loan amount.  TeamSklar is led by loan officer Eli Sklar, who holds a Masters in Real Estate from NYU and lives with his wife and 4 kids.
 
 

Debra Shultz at Guaranteed Rate (contact)

With over 23 years of experience in mortgage lending, she is an expert in residential mortgage financing for all propertyDebra Shultz types, including single & multifamily residences, townhomes, condos, co-ops, condops, new developments, and conversions. Debra has access to just about every mortgage product on the market. The more traditional products include options for jumbo and super-jumbo loan amounts, Fannie Mae & Freddie Mac conforming loan amounts, FHA & VA government loans, and Construction and Renovation loans. Debra frequently makes “mortgage magic” for non-traditional borrowers facing out-of-the-box scenarios.  Hence, her nickname, AbracaDebra. She has access to specialized products for non-traditional borrowers & property types. Product features include interest-only payments, business deposits as income for self-employed clients, assets as income for high net worth clients, options for non-warrantable condos and coops, and financing options for foreign buyers.

Antonio Ciccullo at TD bank (contact

Antoni0 is the best in 3 types of loans and benefits from the cheap funding of a Canadian bank!
  • construction to permanent mortgages (80% loan to value on loan amounts up to $3,000,000 and 65% loan to value on loan amountsAntonio Ciccullo $3,000,001 – $6,000,000.  We base the loan to value on the sum of the purchase price + renovation costs for purchase and we base the loan to value on the “subject to completion value” for refinance transactions.
  • jumbo loans (90% loan-to-value on 1-2 family homes with a loan amount up to $2,500,000)
  • 80% loan to value on purchase transactions for loan amounts up to $3,000,000 on 1-4 family homes, coops, and condo units


Written By: Georges Benoliel

Georges has been working in Wall Street for the last 16 years trading derivatives with hedge funds. He has been an active real estate investor for over a decade. Georges graduated from HEC Business School in Paris and holds a master in Finance from ESADE Barcelona.

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