Financial Compound is commercial real estate broker.
While new technology is completely changing the face of the residential mortgage market, the same story isn't happening in thecommercial mortgage market.
As it stands, mortgage lenders are almost being forced to use more technology in order to compete in the market.
Kelly Adkisson, a managing director at Accenture Credit Services, recently explained in an interview: 'Lower overall volumes will require lenders to compete more effectively for fewer customers. Lenders need to invest in analytical capabilities to drive high-quality leads, that is, consumers who are 'in the market' or will be soon based on life event triggers.'
However, the commercial mortgage market operates differently.
An article in The Wall Street Journal covers one midsize commercial-mortgage broker's choice to cap its fee on any deal at $135,000, partly because executives saw that the real-estate-lending business was becoming increasingly streamlined.
The decision by Eastern Union Funding, which was founded in Brooklyn, is generating a lot of buzz in the commercial industry since many still that feel their businesses will be strong even with technological advances due to the complexity involved in deals.
But the executives at Eastern Union Funding don't share that same opinion.