Private lending has always been a relationship business. But over the past 12 to 18 months, those relationships have been tested by the challenges of today’s macroeconomic environment and housing market, leaving many brokers asking: Why does every deal feel harder to win?
Interest rates are certainly one part of the story, but deal compression has become one of the defining characteristics of today’s market. While fewer deals are moving through the pipeline, competition hasn’t eased. Lenders are competing more aggressively for brokers’ business, and brokers must work harder to win borrowers, who have more financing choices than ever.
That dynamic creates pressure across the entire lifecycle, reshaping the economics of the broker business. ...
