Commercial Real Estate Company Uncovers Hidden Revenue Source

cmac logoA commercial real estate company, Capital Markets Access Company (CMAC*), was recently featured in the  Scottsman Guide,  a leading resource and publication for commercial loan originators, as a contributing author sharing his ideas on how commercial brokers can add value to their bank originated loan transactions by providing swap advisory services, which could save their clients hundreds of thousands of dollars in hidden swap fees.

Greg Warren, managing partner of Swap Negotiators and managing member of CMAC states that, “Brokers and borrowers likely are unaware of what amount the bank added to the transaction unless they retain a hedge or swap adviser.  A bank may imbed as much as 40 to 50 additional basis points into the rate.”  Mr. Warren also goes on to say that,  ”A swap adviser is independent from any bank or lender and has the tools and expertise necessary to ensure the best hedge strategy is implemented. Brokers should ensure that any adviser with whom they partner meets the objectives of their clients and provides transparency for transactions as they relate to the bank.” If you would like to read the full article, click on the attachment below.

*CMAC is a commercial real estate financing company that secures below-market rates by using its extensive bank relationships and leveraging its $1.5 billion in taxable bond master indentures.

1 Comment for this entry

Marketing Consultant
February 1st, 2013 on 7:23 pm

This is a big issue and opportunity for brokers. After reading the article it’s clear that the vast majority of borrowers and brokers are completely unaware of what’s going on.

With this knowledge, the broker can really be a hero to their customer as well as create a new revenue stream.

Fri, March 4, 2011 @ 12:59 PM