Life Co backend yield spread to brokers
Do any of you have experience with either paying brokers backend yield or getting it from life companies, as a broker. I’m working on two deals with Principal and Met Life at a substantially reduced fee, which my boss signed off on immediately. He isn’t usually so generous with clients, so I wanna know if I’m potentially getting screwed. Thanks for any help!
No I have not heard that. For the most part the borrower pays that fee anyways.
Not going to happen. Life cos don't pay fees for anything (borrower pick up all costs).
Expecting lenders to pay brokers is borderline delusional.
Unfortunately this happens all the time, particularly in CMBS. Its messed up but thats how alot of conduit lenders win business and is pretty common, despite being sketchy.
Agreed, I used to work in CMBS and now work on the balance sheet side. Brokers were the lifeblood of the CMBS business, but on the balance sheet/institutional side, we never pay brokers given that we have relationships with sponsors and we will do deals with them regardless of whether a broker is involved in the deal.
Deal flow is probably down and your boss probably recognizes the need for any sort of cash flow coming to the shop
Natus alias fugit eius nam cumque. Dolorem maiores nesciunt voluptatem sequi. Reprehenderit ipsam sequi non maiores.
Dignissimos illo esse temporibus ex. Animi vero animi eveniet eveniet qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...