The role of the private mortgage broker is to introduce lending opportunities to the private mortgage lender, or in the case of a mortgage syndicate, the lenders. The private mortgage broker structures the loan by negotiating a term sheet acceptable to both the lender and the borrower.
The private mortgage broker represents the lenders at the negotiation stage and for this service earns a brokerage fee. In order to maintain the relationship with the investors, the private mortgage broker will usually serve as administrative agent during the life of the loan. Wearing this hat, the broker liaises between the lenders and the borrower, mortgage lawyer, quantity surveyor, mortgage manager, the incoming lender and others in order to ensure a smooth experience.