š³ Do You Really Know the Broker or Lender Youāre Working With?
New to Real Estate Ā· Miami, FL Ā· Member since 2024 Ā· 1k+ posts Ā· 465 votes
š³ Do You Really Know the Broker or Lender Youāre Working With?
Most Popular Reply
Ray WilliamsBusiness Member
Lender Ā· Denver, CO Ā· Member since 2017 Ā· 160 posts Ā· 72 votesI hear you. I will say a broker and a lender are not one in the same. There are plenty of lenders passing themselves off as brokers because it is widely known about rates/fees/program options brokers have access to. Doesn't make a broker better, but understanding truly what the word broker means is not something most RE agents know. So Drago what is a real broker to you?
20 Replies
- 3moErik EstradaBusiness MemberLender Ā· Member since 2022 Ā· 6k+ posts Ā· 1k+ votes
Quote from @Drago Stanimirovic:
Before you trust anyone with your deal, your documents, your credit, and your personal information... ask hard questions.
Not every ābrokerā is a real financing professional. Some are just pretending.
Ask them:
- How long have you been in the financing business?
- Are you a registered U.S. company?
- Are you actually working from the U.S.?
- Where is my paperwork being processed?
- Who has access to my personal and financial information?
- Are you a real broker/lender, or just passing files around?
- What lenders do you actually work with?
- Can you show proof of closed loans?
- Did you learn this business from the ground up?
- Or did you take someone elseās knowledge and pretend it was yours?
Donāt accept a smooth ChatGPT answer.
Ask for proof.
Fix-and-flip borrowers need to protect themselves from fake brokers, fake lenders, and people promising the world while delivering nothing.
Before you send documents, bank statements, tax returns, IDs, or credit information... know who youāre dealing with.
The financing business already has enough red flags.
Maybe itās time for a black light district for fake brokers and lenders - because black light exposes what people try to hide. š¦
Borrower Beware š³
Solid Post
LuxePrivate Investments LLC 572 Reviews - 3moStacy RaskinBusiness MemberLender Ā· Member since 2022 Ā· 1k+ posts Ā· 508 votes
Good points. Not needed for most states for business purpose loans such as DSCR loans and fix and flip loans but also helpful to look up to see if the mortgage professional has an NMLS license for any state. That means the person passed a very difficult test that about half the people fail on their first try. It also means they have taken educational courses and must continue to do so to have their NMLS license renewed yearly. Information can be looked up on indviduals on NMLS Consumer Access.
Bright Skyline518 Reviews- 3moJay HinrichsBusiness MemberReal Estate Consultant Ā· Summerlin, NV Ā· Member since 2014 Ā· 45k+ posts Ā· 66k+ votes
Quote from @Stacy Raskin:
Good points. Not needed for most states for business purpose loans such as DSCR loans and fix and flip loans but also helpful to look up to see if the mortgage professional has an NMLS license for any state. That means the person passed a very difficult test that about half the people fail on their first try. It also means they have taken educational courses and must continue to do so to have their NMLS license renewed yearly. Information can be looked up on indviduals on NMLS Consumer Access.
YUP unless the one taking the test has worked on FHA VA and conventional owner occ loans for a long time the test is very difficult for those of us that were HM ONLY.. like myself I passed first time but one of my employees who passed the BAR failed first time LOL.. But he had zero real estate experience. There are 14 or so states that require it. I let my Oregon MLO and NMLS go as the CE is just exhausting as well as doing the mortgage call reports.. when your solo like me and dont have staff to do these reports for you its just a real pain.
Lets keep in mind pump and dump up front fee scammers will have fakes of everything the OP wrote about.. And borrowers well they just dont know what they dont know.. In my mind referrals and talking to a title / escrow / closing attorney about who does deals in their area or referrals from other investors is probably the best way to go about figuring out who can do what.
Since most state have NO license requirements its just a wild west out there and a lot of Beginners or dreamers get into thinking they can broker loans. - 3moStacy RaskinBusiness MemberLender Ā· Member since 2022 Ā· 1k+ posts Ā· 508 votes
Quote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Good points. Not needed for most states for business purpose loans such as DSCR loans and fix and flip loans but also helpful to look up to see if the mortgage professional has an NMLS license for any state. That means the person passed a very difficult test that about half the people fail on their first try. It also means they have taken educational courses and must continue to do so to have their NMLS license renewed yearly. Information can be looked up on indviduals on NMLS Consumer Access.
YUP unless the one taking the test has worked on FHA VA and conventional owner occ loans for a long time the test is very difficult for those of us that were HM ONLY.. like myself I passed first time but one of my employees who passed the BAR failed first time LOL.. But he had zero real estate experience. There are 14 or so states that require it. I let my Oregon MLO and NMLS go as the CE is just exhausting as well as doing the mortgage call reports.. when your solo like me and dont have staff to do these reports for you its just a real pain.
Lets keep in mind pump and dump up front fee scammers will have fakes of everything the OP wrote about.. And borrowers well they just dont know what they dont know.. In my mind referrals and talking to a title / escrow / closing attorney about who does deals in their area or referrals from other investors is probably the best way to go about figuring out who can do what.
Since most state have NO license requirements its just a wild west out there and a lot of Beginners or dreamers get into thinking they can broker loans.Yes, the NMLS is a difficult test. Per NMLS, only 53% pass on their first try! Link with the test information: https://mortgage.nationwidelicensingsystem.org/knowledge/pro...
Bright Skyline518 Reviews - 3moJay HinrichsBusiness MemberReal Estate Consultant Ā· Summerlin, NV Ā· Member since 2014 Ā· 45k+ posts Ā· 66k+ votes
Quote from @Stacy Raskin:
Quote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Good points. Not needed for most states for business purpose loans such as DSCR loans and fix and flip loans but also helpful to look up to see if the mortgage professional has an NMLS license for any state. That means the person passed a very difficult test that about half the people fail on their first try. It also means they have taken educational courses and must continue to do so to have their NMLS license renewed yearly. Information can be looked up on indviduals on NMLS Consumer Access.
YUP unless the one taking the test has worked on FHA VA and conventional owner occ loans for a long time the test is very difficult for those of us that were HM ONLY.. like myself I passed first time but one of my employees who passed the BAR failed first time LOL.. But he had zero real estate experience. There are 14 or so states that require it. I let my Oregon MLO and NMLS go as the CE is just exhausting as well as doing the mortgage call reports.. when your solo like me and dont have staff to do these reports for you its just a real pain.
Lets keep in mind pump and dump up front fee scammers will have fakes of everything the OP wrote about.. And borrowers well they just dont know what they dont know.. In my mind referrals and talking to a title / escrow / closing attorney about who does deals in their area or referrals from other investors is probably the best way to go about figuring out who can do what.
Since most state have NO license requirements its just a wild west out there and a lot of Beginners or dreamers get into thinking they can broker loans.Yes, the NMLS is a difficult test. Per NMLS, only 53% pass on their first try! Link with the test information: https://mortgage.nationwidelicensingsystem.org/knowledge/pro...
its also one of the reasons when this law came up that so many older mortgage folks left the industry.. did not want to go through the pain of the test and or all the compliance. I am all for protecting borrowers but NMLS is typical over reaction and over reach by big gov .. I dont see any reason why we have to post all of our applications and turn downs on a govmit site.. its just make work.. I sure hope our current admin address's this and cuts out a bunch of that red tape. Scammers will always be scammers in this end of the bizz its Caveat Emptar for sure. - 3moDon KonipolBusiness MemberInvestor Ā· The Woodlands TX / Avon, CT Ā· Member since 2009 Ā· 6k+ posts Ā· 10k+ votesJay, here is the latest information on state licensing requirements for originating commercial mortgage loans
Quote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Quote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Good points. Not needed for most states for business purpose loans such as DSCR loans and fix and flip loans but also helpful to look up to see if the mortgage professional has an NMLS license for any state. That means the person passed a very difficult test that about half the people fail on their first try. It also means they have taken educational courses and must continue to do so to have their NMLS license renewed yearly. Information can be looked up on indviduals on NMLS Consumer Access.
YUP unless the one taking the test has worked on FHA VA and conventional owner occ loans for a long time the test is very difficult for those of us that were HM ONLY.. like myself I passed first time but one of my employees who passed the BAR failed first time LOL.. But he had zero real estate experience. There are 14 or so states that require it. I let my Oregon MLO and NMLS go as the CE is just exhausting as well as doing the mortgage call reports.. when your solo like me and dont have staff to do these reports for you its just a real pain.
Lets keep in mind pump and dump up front fee scammers will have fakes of everything the OP wrote about.. And borrowers well they just dont know what they dont know.. In my mind referrals and talking to a title / escrow / closing attorney about who does deals in their area or referrals from other investors is probably the best way to go about figuring out who can do what.
Since most state have NO license requirements its just a wild west out there and a lot of Beginners or dreamers get into thinking they can broker loans.Yes, the NMLS is a difficult test. Per NMLS, only 53% pass on their first try! Link with the test information: https://mortgage.nationwidelicensingsystem.org/knowledge/pro...
its also one of the reasons when this law came up that so many older mortgage folks left the industry.. did not want to go through the pain of the test and or all the compliance. I am all for protecting borrowers but NMLS is typical over reaction and over reach by big gov .. I dont see any reason why we have to post all of our applications and turn downs on a govmit site.. its just make work.. I sure hope our current admin address's this and cuts out a bunch of that red tape. Scammers will always be scammers in this end of the bizz its Caveat Emptar for sure.True Commercial Mortgage Loans
The following 11 states may require licensing to originate commercial mortgage real estate loans, defining commercial mortgage loans to mean a loan secured by real estate that is not a residential 1 to 4 family dwelling.
Arizona Commercial Mortgage Broker or Banker
California CFL or DRE
Illinois Loan Broker
North Dakota Money Broker
Nebraska Loan Broker
Nevada Mortgage Broker (Company and LO)
South Dakota Non-Residential Mortgage Lender (Company and LO)
Michigan (Real Estate Broker) ā Brokering and Lending
Minnesota (Limited Real Estate Broker) ā Brokering Only
New York (Real Estate Broker)- Brokering Only
New Jersey (Real Estate Broker)- Brokering OnlyThe following 39 states do not require licensing to originate commercial mortgage real estate loans
Alabama
Alaska
Arkansas
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Mississippi
Missouri
Montana
New Hampshire
New Mexico
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
- 3moJay HinrichsBusiness MemberReal Estate Consultant Ā· Summerlin, NV Ā· Member since 2014 Ā· 45k+ posts Ā· 66k+ votes
Quote from @Don Konipol:
Jay, here is the latest information on state licensing requirements for originating commercial mortgage loansQuote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Quote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Good points. Not needed for most states for business purpose loans such as DSCR loans and fix and flip loans but also helpful to look up to see if the mortgage professional has an NMLS license for any state. That means the person passed a very difficult test that about half the people fail on their first try. It also means they have taken educational courses and must continue to do so to have their NMLS license renewed yearly. Information can be looked up on indviduals on NMLS Consumer Access.
YUP unless the one taking the test has worked on FHA VA and conventional owner occ loans for a long time the test is very difficult for those of us that were HM ONLY.. like myself I passed first time but one of my employees who passed the BAR failed first time LOL.. But he had zero real estate experience. There are 14 or so states that require it. I let my Oregon MLO and NMLS go as the CE is just exhausting as well as doing the mortgage call reports.. when your solo like me and dont have staff to do these reports for you its just a real pain.
Lets keep in mind pump and dump up front fee scammers will have fakes of everything the OP wrote about.. And borrowers well they just dont know what they dont know.. In my mind referrals and talking to a title / escrow / closing attorney about who does deals in their area or referrals from other investors is probably the best way to go about figuring out who can do what.
Since most state have NO license requirements its just a wild west out there and a lot of Beginners or dreamers get into thinking they can broker loans.Yes, the NMLS is a difficult test. Per NMLS, only 53% pass on their first try! Link with the test information: https://mortgage.nationwidelicensingsystem.org/knowledge/pro...
its also one of the reasons when this law came up that so many older mortgage folks left the industry.. did not want to go through the pain of the test and or all the compliance. I am all for protecting borrowers but NMLS is typical over reaction and over reach by big gov .. I dont see any reason why we have to post all of our applications and turn downs on a govmit site.. its just make work.. I sure hope our current admin address's this and cuts out a bunch of that red tape. Scammers will always be scammers in this end of the bizz its Caveat Emptar for sure.True Commercial Mortgage Loans
The following 11 states may require licensing to originate commercial mortgage real estate loans, defining commercial mortgage loans to mean a loan secured by real estate that is not a residential 1 to 4 family dwelling.
Arizona Commercial Mortgage Broker or Banker
California CFL or DRE
Illinois Loan Broker
North Dakota Money Broker
Nebraska Loan Broker
Nevada Mortgage Broker (Company and LO)
South Dakota Non-Residential Mortgage Lender (Company and LO)
Michigan (Real Estate Broker) ā Brokering and Lending
Minnesota (Limited Real Estate Broker) ā Brokering Only
New York (Real Estate Broker)- Brokering Only
New Jersey (Real Estate Broker)- Brokering OnlyThe following 39 states do not require licensing to originate commercial mortgage real estate loans
Alabama
Alaska
Arkansas
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Mississippi
Missouri
Montana
New Hampshire
New Mexico
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Don thank you I think Vermont requires one I just funded one there and had to use a licensed broker to be legal.. According to the info the closing attorney sent me on the subject. - 3moDon KonipolBusiness MemberInvestor Ā· The Woodlands TX / Avon, CT Ā· Member since 2009 Ā· 6k+ posts Ā· 10k+ votesThanks Jay. Thatās the problem with these lists. They can be incorrect for some states. Was this land or improved property in Vermont?
Quote from @Jay Hinrichs:
Quote from @Don Konipol:
Jay, here is the latest information on state licensing requirements for originating commercial mortgage loansQuote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Quote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Good points. Not needed for most states for business purpose loans such as DSCR loans and fix and flip loans but also helpful to look up to see if the mortgage professional has an NMLS license for any state. That means the person passed a very difficult test that about half the people fail on their first try. It also means they have taken educational courses and must continue to do so to have their NMLS license renewed yearly. Information can be looked up on indviduals on NMLS Consumer Access.
YUP unless the one taking the test has worked on FHA VA and conventional owner occ loans for a long time the test is very difficult for those of us that were HM ONLY.. like myself I passed first time but one of my employees who passed the BAR failed first time LOL.. But he had zero real estate experience. There are 14 or so states that require it. I let my Oregon MLO and NMLS go as the CE is just exhausting as well as doing the mortgage call reports.. when your solo like me and dont have staff to do these reports for you its just a real pain.
Lets keep in mind pump and dump up front fee scammers will have fakes of everything the OP wrote about.. And borrowers well they just dont know what they dont know.. In my mind referrals and talking to a title / escrow / closing attorney about who does deals in their area or referrals from other investors is probably the best way to go about figuring out who can do what.
Since most state have NO license requirements its just a wild west out there and a lot of Beginners or dreamers get into thinking they can broker loans.Yes, the NMLS is a difficult test. Per NMLS, only 53% pass on their first try! Link with the test information: https://mortgage.nationwidelicensingsystem.org/knowledge/pro...
its also one of the reasons when this law came up that so many older mortgage folks left the industry.. did not want to go through the pain of the test and or all the compliance. I am all for protecting borrowers but NMLS is typical over reaction and over reach by big gov .. I dont see any reason why we have to post all of our applications and turn downs on a govmit site.. its just make work.. I sure hope our current admin address's this and cuts out a bunch of that red tape. Scammers will always be scammers in this end of the bizz its Caveat Emptar for sure.True Commercial Mortgage Loans
The following 11 states may require licensing to originate commercial mortgage real estate loans, defining commercial mortgage loans to mean a loan secured by real estate that is not a residential 1 to 4 family dwelling.
Arizona Commercial Mortgage Broker or Banker
California CFL or DRE
Illinois Loan Broker
North Dakota Money Broker
Nebraska Loan Broker
Nevada Mortgage Broker (Company and LO)
South Dakota Non-Residential Mortgage Lender (Company and LO)
Michigan (Real Estate Broker) ā Brokering and Lending
Minnesota (Limited Real Estate Broker) ā Brokering Only
New York (Real Estate Broker)- Brokering Only
New Jersey (Real Estate Broker)- Brokering OnlyThe following 39 states do not require licensing to originate commercial mortgage real estate loans
Alabama
Alaska
Arkansas
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Mississippi
Missouri
Montana
New Hampshire
New Mexico
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Don thank you I think Vermont requires one I just funded one there and had to use a licensed broker to be legal.. According to the info the closing attorney sent me on the subject. - 3moJay HinrichsBusiness MemberReal Estate Consultant Ā· Summerlin, NV Ā· Member since 2014 Ā· 45k+ posts Ā· 66k+ votes
Quote from @Don Konipol:
Thanks Jay. Thatās the problem with these lists. They can be incorrect for some states. Was this land or improved property in Vermont?Quote from @Jay Hinrichs:
Quote from @Don Konipol:
Jay, here is the latest information on state licensing requirements for originating commercial mortgage loansQuote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Quote from @Jay Hinrichs:
Quote from @Stacy Raskin:
Good points. Not needed for most states for business purpose loans such as DSCR loans and fix and flip loans but also helpful to look up to see if the mortgage professional has an NMLS license for any state. That means the person passed a very difficult test that about half the people fail on their first try. It also means they have taken educational courses and must continue to do so to have their NMLS license renewed yearly. Information can be looked up on indviduals on NMLS Consumer Access.
YUP unless the one taking the test has worked on FHA VA and conventional owner occ loans for a long time the test is very difficult for those of us that were HM ONLY.. like myself I passed first time but one of my employees who passed the BAR failed first time LOL.. But he had zero real estate experience. There are 14 or so states that require it. I let my Oregon MLO and NMLS go as the CE is just exhausting as well as doing the mortgage call reports.. when your solo like me and dont have staff to do these reports for you its just a real pain.
Lets keep in mind pump and dump up front fee scammers will have fakes of everything the OP wrote about.. And borrowers well they just dont know what they dont know.. In my mind referrals and talking to a title / escrow / closing attorney about who does deals in their area or referrals from other investors is probably the best way to go about figuring out who can do what.
Since most state have NO license requirements its just a wild west out there and a lot of Beginners or dreamers get into thinking they can broker loans.Yes, the NMLS is a difficult test. Per NMLS, only 53% pass on their first try! Link with the test information: https://mortgage.nationwidelicensingsystem.org/knowledge/pro...
its also one of the reasons when this law came up that so many older mortgage folks left the industry.. did not want to go through the pain of the test and or all the compliance. I am all for protecting borrowers but NMLS is typical over reaction and over reach by big gov .. I dont see any reason why we have to post all of our applications and turn downs on a govmit site.. its just make work.. I sure hope our current admin address's this and cuts out a bunch of that red tape. Scammers will always be scammers in this end of the bizz its Caveat Emptar for sure.True Commercial Mortgage Loans
The following 11 states may require licensing to originate commercial mortgage real estate loans, defining commercial mortgage loans to mean a loan secured by real estate that is not a residential 1 to 4 family dwelling.
Arizona Commercial Mortgage Broker or Banker
California CFL or DRE
Illinois Loan Broker
North Dakota Money Broker
Nebraska Loan Broker
Nevada Mortgage Broker (Company and LO)
South Dakota Non-Residential Mortgage Lender (Company and LO)
Michigan (Real Estate Broker) ā Brokering and Lending
Minnesota (Limited Real Estate Broker) ā Brokering Only
New York (Real Estate Broker)- Brokering Only
New Jersey (Real Estate Broker)- Brokering OnlyThe following 39 states do not require licensing to originate commercial mortgage real estate loans
Alabama
Alaska
Arkansas
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Mississippi
Missouri
Montana
New Hampshire
New Mexico
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Don thank you I think Vermont requires one I just funded one there and had to use a licensed broker to be legal.. According to the info the closing attorney sent me on the subject.
commercial building .. store fronts on the ground floor and my client is going to create apartments above.
- Lender Ā· Pickerington, OH Ā· Member since 2026 Ā· 49 posts Ā· 39 votes3mo
This is such a good reminder. So many newer investors donāt even know what questions they should be asking yet. Itās always worth slowing down, checking credentials, and making sure you know exactly who has your information and who is actually funding the deal.
- New to Real Estate Ā· Miami, FL Ā· Member since 2024 Ā· 1k+ posts Ā· 465 votes3mo
I appreciate all the thoughtful comments on my previous post. Several experienced lenders made an important point that deserves repeating:
Credentials matter... but they aren't the whole story.
A license, an NMLS registration (where applicable), or a professional-looking website doesn't automatically mean someone is competent or ethical.
Likewise, not having an NMLS license doesn't automatically make someone unqualified for every type of commercial or business-purpose loan, since regulations vary by state and loan type.
What borrowers should really look for is transparency.
Can the broker clearly explain the process?
Can they tell you exactly who the lender is?
Can they explain the fees before asking for documents?
Can they show a track record of successfully closing deals?
Can they provide references from borrowers or closing professionals?Experienced investors also mentioned something I completely agree with: referrals matter. A recommendation from a respected investor, title company, escrow officer, or closing attorney often tells you far more than a polished sales pitch.
At the end of the day, you're not just choosing someone to find financing.
You're choosing someone who will handle your financial information, represent your deal, and potentially determine whether your transaction closes on time.
Ask questions.
Verify answers.
Never confuse confidence with competence.Protect your business before you protect your deal.
- 3moRebecca KnoxBusiness MemberSpecialist Ā· Milwaukee, WI Ā· Member since 2014 Ā· 1k+ posts Ā· 1k+ votes
This is a very meaningful post.
Here in Milwaukee, I heard of someone that is related to the mortgage industry doing something very fishy. Apparently, when an investor would check with him for financing, if they couldn't get approved or went with someone else, they were giving the address of the subject property to other client(s) so that they could go after the deal.
- Banker Ā· MA Ā· Member since 2026 Ā· 120 posts Ā· 33 votes3mo
All great questions to ask ā and the NMLS point Drago raised is worth expanding on, because it's one of the clearest objective filters available to borrowers.
Here's a practical due diligence checklist for anyone vetting a mortgage professional:
**1. Look them up on the NMLS Consumer Access portal (free, public)**
You can search by name, company, or license number at nmlsconsumeraccess.org. It shows every state they're licensed in, any disciplinary actions, and employment history. Takes 60 seconds and tells you a lot.
**2. Verify the license is active in your state**
A license in one state doesn't mean they can legally originate in another. Originating across state lines without proper licensing is a real problem ā and a red flag.
**3. Ask for closed transaction experience, not just years in the business**
Anyone can claim experience. Ask specifically: Have you closed DSCR loans? Fix-and-flip? What lenders do you actually place those with? A real professional can answer those questions without hesitation.
**4. Understand where your data goes**
You're handing over tax returns, bank statements, and SSNs. Ask directly: Who processes my file? Is your LOS (loan origination system) a recognized platform? Who has access?
**5. Be skeptical of vague "private lender" claims**
For business-purpose loans like DSCR and fix-and-flip, licensing rules differ by state ā but that doesn't mean due diligence goes out the window. Legitimate operators are transparent about their capital source or lender relationships.
After 31 years in the mortgage business, I'll say this: the professionals who get defensive when asked these questions are usually the ones you should walk away from. The ones worth working with welcome the scrutiny.
---
Jim Driscoll
- 3moDrew SygitBusiness MemberProperty Manager Ā· Royal Oak, MI Ā· Member since 2012 Ā· 12k+ posts Ā· 9k+ votes
Back in the day, I was heavily involved with the Michigan Mortgage Brokers Association.
We were working with the State of Michigan to create a licensing & background check process for Residential LOs.
You would not believe the crooks doing loans before the Great Crashš¤¢
ANYONE that could fog a mirror could be an LO.
So, now LOs are licenced like real estate agents - and it's still TOO EASY!
Just look at how many incompetent people you've probably dealt with.
The REAL issue is that there's NOT a lot of enforcement of the laws on the books.
Politicians cultivate votes by tumpeting new legislation instead of funding enforcementš”
Logical Property Management4.9459 Reviews - Lender Ā· Member since 2026 Ā· 19 posts Ā· 2 votes3mo
can you believe it... 2026 and still the best method for finding a broker is WORD OF MOUTH.
- 2moRay WilliamsBusiness MemberLender Ā· Denver, CO Ā· Member since 2017 Ā· 160 posts Ā· 72 votes
I hear you. I will say a broker and a lender are not one in the same. There are plenty of lenders passing themselves off as brokers because it is widely known about rates/fees/program options brokers have access to. Doesn't make a broker better, but understanding truly what the word broker means is not something most RE agents know. So Drago what is a real broker to you?
- New to Real Estate Ā· Miami, FL Ā· Member since 2024 Ā· 1k+ posts Ā· 465 votes2mo
Being a "real broker" has less to do with the title and more to do with the job they actually do.
A real broker learns enough about the borrower to know where the deal actually belongs. They don't just submit it to whoever answers the phone first or whoever pays the highest commission. If a deal isn't a fit, they say so. If another lender has a better product, they make the introduction instead of forcing the wrong solution.
That's really what my original post was about. Whether someone is a broker or a lender, I want to know they're recommending what's best for the borrower, not just what's easiest or most profitable for themselves.
- 2moRay WilliamsBusiness MemberLender Ā· Denver, CO Ā· Member since 2017 Ā· 160 posts Ā· 72 votes
So in short people who have ethics? Being an expert at their craft really is on them. But just look at sports as example. There are some really talented athletes that have no discipline. For me after 25Y I have effectively applied the 10K hours rule 5X and have always been a guideline and data geek. Does that mean I am the best lender for someone? Not to say, because we do deal in an emotional industry. So if I ask different questions, think differently, and ask for different documentation that may not land for everyone. Which is ok, we just believe in transparent conversations to allow for them to opt out and keep communication open if it is not a good fit. So I appreciate the questions to ask. At the end of the day listening for queues, asking open ended questions, solving for life solutions matters. I am a connector by nature so I agree when you look out for others first things have a tendency to work out in business. I just don't see a list of questions as a straight line answer for a consumer. As example I can ask many lenders if they know what an STR DSCR loan is, most say yes. Reality is they don't because those loans are handled 180 degrees different than a DSCR loan. Lenders will run to DSCR and complicate a borrowers life because they promised speed and a great rate. And likely didn't teach the borrower about how that low rate came w a 5Y PP. Just went through looking to help a STR operator refinance. They have a 6Y PP they knew nothing about. So they are stuck and their rev will suffer because they took out the wrong loan when they bought.
- Allen, Collin County Ā· Member since 2024 Ā· 5 posts Ā· 6 votes2mo
I was scammed by a broker who does not have a nmls number
- Banker Ā· MA Ā· Member since 2026 Ā· 120 posts Ā· 33 votes2mo
At least now you know to look up the number of the broker
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