Eastern Union Lowers Fee Cap to $135K from $250K

Eastern Union Funding in New York has lowered its fee cap $135,000 on loans for stabilized properties.

Eastern Union, a commercial mortgage broker, implemented the smaller cap to generate more business, the company said in a news release. Smaller fees "are more appealing to lenders," Ira Zlotowitz, Eastern Union's president, said in the release.

"Borrowers have questioned for years why a $100 million deal warrants a fee five times the size of a $20 million deal, and why a $20 million deal carries a fee four times that of a $5 million transaction," Zlotowitz said.

The fee will be lowered to $135,000 per transaction from $250,000; the higher fee had been in place for the past 12 months. The $250,000 fee cap was lower than the industry standard and had generated new business for Eastern Union in several loan categories, the company said.