In any mortgage transaction there are two sides with opposing interests. The borrower wants the most money at the lowest rate on the easiest terms. The lender wants appropriate security, a fair return, and a clean exit. When one party tries to serve both, something has to give and it is rarely the side paying the bigger fee.
Possible conflict of interest
If the party arranging the loan is also working for (or being paid by) the borrower, their incentive can shift toward closing the deal rather than protecting your position. It can happen when the arranger’s incentives aren’t aligned with yours.
What lender-only representation means
It means the party structuring and presenting the deal works for the lender’s interest alone, and the borrower is represented separately by their own licensed professional. The two sides stay distinct, the way they should be. You get an underwrite built around your risk, not the borrower’s convenience and a clear answer to the most important question in private lending: who is actually working for me?
What to ask a potential partner
Who do you represent? Who pays you, and how? Is the borrower separately represented? Will you tell me the weaknesses in a deal, not just the strengths? Straight answers here tell you most of what you need to know.
AAREA’s role in lender representation
We represent lenders only and we are a CPA and CFA led firm with professional codes of conduct. Borrowers are always represented by a separate licensed professional, so there’s no question whose interest we’re protecting. The simplest way to remove the conflict of interest is to work with someone who represents lenders only. At AAREA, borrowers are always separately represented so there’s no question whose interest we’re protecting.