What Boards Should Demand From Their Loan Broker in 2027

Boards hire loan brokers under time pressure and rarely negotiate the engagement terms. That is backward. What a board demands upfront determines everything about the process that follows, and in 2027 the five items below should be non-negotiable for any HOA loan broker engagement. Run through this list before your next board meeting.

We are HOA Loan Services. HOA loan strategists. No upfront cost, and we are paid at closing. 300+ loans placed since 2016, with lenders in all fifty states. Here is what our own engagement terms say, in writing: the fee up front, one comparison sheet rather than a stack of PDFs, Larry or Ben named on the deal, and nothing owed if the board walks away.

1. Fee Structure in Writing Before Any Work Begins

A broker who cannot state their fee before starting is a broker whose fee is negotiable at the end, and boards always negotiate from a weaker position after the work is done. Our engagement letter states the fee up front, along with the condition that we are paid only at closing. If a broker's letter buries the fee, or if the fee varies based on lender selection in a way that could bias which lender wins, that is a red flag.

The specific question to ask: does the broker earn more from one lender in the network than from another? If yes, the broker's incentive is not aligned with the board's. Our fee is the same whichever lender wins.

2. A Full List of Every Lender Being Contacted

Boards should see the actual list of lenders receiving the file, by name, before any file goes out. Not a count. Not a category. Names. Six lenders in the mid-market condo space, listed. Two specialty lenders for the mixed-use component, listed. If the broker says the list is proprietary or shares only categories, they are hiding something, usually the fact that they are contacting fewer lenders than implied.

Red-flag response: we contact all our lenders. That is not a real answer. Every credible broker prunes the list to fit the deal.

3. A Side-by-Side Term Sheet Comparison

When the term sheets come back, the broker should build a single document that compares them across rate, term, amortization, origination fee, prepayment penalty, covenants, and all-in cost over the expected loan life. Not a stack of PDFs handed to the board. A single comparison sheet that lets a board vote in one meeting.

Boards who receive three unstructured term sheets take four meetings to decide. Boards who receive one comparison sheet decide in one meeting. That difference alone can be the difference between locking a spring rate and losing it.

4. A Named Advocate, Not a Rotating Rep

The board should know the specific human who is running their deal from first call to funding. First name, last name, direct line, direct email. Not a case number. Not a portal ticket. Not a rotating pool of associates. Larry or Ben joins board calls when the board needs us. That is not scalable in the sense that a call center is scalable, and that is precisely the point.

A rotating rep model tells boards they will have to re-explain their situation every time they call. The cost shows up as slower responses and dropped context, not as a line item.

5. The Ability to Walk Away Without Owing

Any engagement that binds a board to close a loan or pay a fee is structurally hostile to the board. The board should retain the right to reject every term sheet and walk away owing nothing. That is what being paid only at closing actually means, and it is the only fee structure we offer.

Boards should read the fine print here specifically. Some brokers advertise no upfront cost but include a minimum work fee or an exit fee if the board declines to close after three term sheets. Ask directly: if we take the term sheets and choose not to proceed, do we owe you anything at all? The answer should be no, in writing.

Red-Flag Responses to Watch For

• Fee is discussed only verbally and changes when you ask a second time
• Lender list is described in categories rather than by name
• Term sheets arrive as raw PDFs with no comparison built
• Board is passed among three or four different reps across the process
• Engagement letter contains a minimum fee, exit fee, or work fee
• Broker declines to disclose whether their fee varies by which lender closes

Any one of those alone is a warning. Two or more together mean the board is about to enter an engagement that will cost more and deliver less than a properly structured one.

What Larry Wants Boards to Do This Week

Take the five demands above and email them to any broker you are currently in conversation with. Ask for each one in writing. Any broker who cannot meet the list in a return email inside a week is not the right partner for a spring capital project. Our engagement letter states the fee up front. Book a consultation and we will send it over before you even schedule the call.