Commercial Process

Submit Application

Sizing the loan involves the underwriter completing an early assessment of the lender’s ability to complete the loan and on what terms including loan size, interest rate, term, amortization, prepayment options, requirement for reserves and security. Sizing of the loan will form the basis of a letter of intent.

Letter of intent is issued

A letter of intent (LOI) is a non-binding offer to finance. It provides the borrowers with a high level overview of the terms and conditions that the lender could provide.

Letter of intent is signed, and sent to MCAP

MCAP underwrites the loan

Underwriting the loan involves completing the necessary due diligence for the loan to accurately assess the risk and return that the lender is taking for making the investment.

MCAP issues commitment letter to client or broker 

The underwriter issues the lender’s standard commitment letter which is the contract that binds the borrower and lender to the loan transaction

Commitment letter is returned, signed, with conditions met

MCAP sends out funding instructions

The professionals involved with the loan (“the loan team”) receive instructions, which ensures that they perform the tasks that are required to successfully close the loan

Loan servicing/ portfolio management

The loan is boarded to the servicing system that collects payments and distributes to investors. The servicing team ensures the interests of the borrowers and lenders remain well protected by following up for timely payment of municipal taxes and adequate insurance coverage of the real estate. The portfolio management team handles post-funding requests for changes to the loan structure or to the ownership, and related covenants.

Broker’s Finder Fee

MCAP offers a competitive compensation plan for all valued mortgage brokers. Brokers are compensated with a Finder’s Fee for Personal Mortgages; depending on length of mortgage and whether it is a closed or variable term, fee to be negotiated.