Best NYC mortgage banker & broker in 2023
March 1, 2021 by Georges Benoliel
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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 contact either an (i) mortgage banker or an (ii) mortgage broker. The difference between a mortgage broker and a banker is that a mortgage broker cannot lend any money. The broker is merely originating and “brokering” a loan by selling it to a bank. In other words, a mortgage broker is a middleman. Therefore, the broker has limited skin in the game. Conversely, a mortgage banker typically represents a traditional bank lender like Wells, HSBC, JPMorgan Chase, or Bank of America. A bank typically commits its capital to fund a mortgage, even if it securitizes it later. Inversely, a mortgage broker is shopping for the best loan products among the community of lenders. Who are the best mortgage bankers in NYC?
In economics, mortgage brokers usually get paid either by the borrower or the lender. Therefore, 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, we must disclose that paying referral commissions between real estate brokers and mortgage bankers/brokers is illegal. Then, we are happy to introduce the best ones out there, “no strings attached.”
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 a
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 without knowing which banks are competitive in their area. The mortgage broker keeps updated records from banks for the best interest 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 large lending
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 banking relationships with big banks due to a robust physical presence near their homes or workplaces. 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 typically has easier access to their underwriter and sometimes talks 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?
Correspondent Bank is a bank that temporarily funds its mortgage originations through “warehouse lines of credit” from other banks. In other 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.
This is a “flow business.” The more they originate, the more they can recycle. Once they pay off the credit line, the correspondent bank can 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.”
- Good standing in the community
- Two years of relevant experience or education
- A credit report
- A set of fingerprints and a $99 fingerprint fee
- A $1,500 investigation fee
- 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 are as follows:
- A net worth of at least $250,000
- Have a line of credit of at least $1 million
- File a surety bond for at least $50,000
- Employees must have at least five years of experience in making residential mortgage loans.
- A demonstration of good character
- A background report ($3,000 investigation fee)
- A set of fingerprints ($99 fingerprint fee)
The best 2023 mortgage bankers and mortgage brokers in New York
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 attributed to his impeccable service, ability to understand complicated finances, and 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 runs the NYC metro region for Bank of England Mortgage and offers creative mortgage programs that are very different from 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
mortgages, loans for foreign buyers, non-warrantable condos, refinances with unlimited cash-out, and underwrites loans using a common-sense approach.
Loandepot went Public in February 2021 and is the country’s #1 retail mortgage banker. 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 property 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.
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! Also TD is one of the few construction loan lenders.
- Construction to permanent loans and mortgages (80% loan to value on loan amounts up to $3,000,000 and 65% loan to value on loan amounts $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 of 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