Brokers, be careful with Kiavi. They will contact your borrowers.

[Erik Estrada]

I normally don't like to call out lenders, but this one was insane and I hope it does not happen to any other brokers out there. 

I submitted a loan to Kiavi a few months ago and it did not work out since the property did not appraise and the appraiser did not consider any revision request. I spent a lot of time structuring this deal, getting revision requests, and it was pretty much close to loan docs. The borrower didn't move forward because the rate increased due to the lower DSCR, and the borrower was receiving less cash out.This property was part of a larger portfolio that my client was considering refinancing, but wanted to test the waters with 1 property first. Through my diligent follow-ups the my client came back around and wanted to start the process again on the entire portfolio since we have gotten quite a few rate drops. This time around I did not take it to Kiavi since I did not like how they handled the revisions and did not want to provide any exceptions on pricing. So, I quoted my client with a different lender. Albeit the rate was a bit higher since the client's DSCR was very tight on a portfolio to begin with. I sent over the terms to my client and he said he would get back to me.

I gave it a few days as my client said he was busy traveling and was examining another quote from a different lender. Naturally I didn't think anything of it since it is the nature of the business. He goes silent until I followed-up and he said he got a quote from Kiavi at a much lower rate and lower fee. 

I contacted Kiavi about it, since I never gave the client their contact and consent to contact my clients directly, and the account executive said, that since the borrower did not close with Kiavi on the previous loan I submitted to them, they basically have all rights to solicit your borrower's directly, and not pay you any referral fee or nor give you any heads up. 

Imagine spending several hours, structuring a loan for your client that makes sense, all for the lender to go around you, use the information you gave them,  and not give you any credit or even touch-base with you and say "hey by the way, your client contacted us directly". 

I sent Kiavi several loans over these last few years, and I can't believe they will do something so dishonest to their broker partners. Be very careful sending anything to Kiavi.  

[Chris Seveney]

Wow. Not a way to do business.