Silver Hill taps underserved market with residential-style approachwww.mortgagepress.comcommercial loans, small balance, residential underwriting
Silver Hill Financial LLC has achieved substantial business
growth through its perspective on the commercial lending
industry--a residential style of underwriting focused on commercial
loans from $100,000-$1 million. The approach has generated dramatic
sales increases and strengthened relationships with brokers.
"We believe that the small-balance commercial loan market has
been underserved by traditional lending institutions and that by
addressing this need, Silver Hill Financial can help brokers
improve their profitability and continue to grow their business,"
said Joanna Schwartz, managing director of Silver Hill.
Reengineering changes the paradigm
By reengineering the traditional loan origination process, Silver
Hill is able to close commercial loans in 30-45 days. The company
has not only simplified the lending process, but it has also
integrated residential elements and standardized criteria. The
result: converting a once unruly process into one that is quick,
consistent and broker-friendly.
Oftentimes, residential brokers are hesitant to enter the small
balance commercial loan market, viewing the process as overly
complicated, unpredictable and relatively low paying, given all of
the work involved. With the end of the residential refinancing
boom, however, many brokers find themselves looking for additional
revenue streams. Silver Hill has responded with an easy-to-use,
residential-style process that dramatically reduces paperwork,
streamlines approvals and eliminates many of the uncertainties
associated with traditional commercial lending.
"Our program offers a reliable and cost-effective solution to
brokers' need for diversification," said Mike Boggiano, Silver Hill
senior vice president and national sales manager, who is
responsible for developing and overseeing Silver Hill's sales force
and commercial loan originations. "Through our underwriting model,
we provide a great deal of flexibility, resulting in a win-win
situation for both the broker and the borrower."
With Silver Hill managing the appraisal, title process,
environmental evaluations and insurance, loans are closed in a
rapid and predictable manner that mirrors residential-style
closings. In addition, brokers are able to earn up to four points
plus fees on each transaction, with virtually none of the hassles
associated with commercial lending.
Strong broker relationships drive growth
Building strong relationships with brokers is driving Silver Hill's
growth, according to Boggiano, who cited several examples,
including:
"In 2004, the number of applications submitted to Silver Hill
grew 230 percent;
"The company experienced a 500 percent increase in registered
brokers in 2004; and
"Silver Hill's headcount grew 260 percent in 2004, with projections
to hire approximately 20 more employees every other month of
2005.
For brokers, Silver Hill's training and education programs make
the transition from residential to commercial lending easy--from
e-learning modules, to "Silver Sessions" training across the
country, to Web-based presentations. The company also provides
extensive support for brokers to facilitate the lending
process.
For more information, visit www.silverhillfinancial.com.
