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Mortgage Net Branch Questions
How is a Net Branch Different From a Traditional Mortgage Branch?
Why Become a Net Branch?
Am I Required To Have a Brick and Mortar Office?
What States Are Available to Originate Loans?
How Do I Compensate virtual loan officers?
How Much Can I Make?
How Do I Get Paid?
When Does The Branch Get Compensated?
How Do I Get Started?
What Are The Fees To Start A Branch Office?
What Lenders Can We Work With?
What About My Current Investors?
What If I Want To Terminate Our Relationship?
What Support and Training Can I Expect?
What Are Your Loan Fees?
What Marketing Tools Do You Provide?
Can I Process Loans In House?
A mortgage net branch office is not unlike a traditional brick and mortar mortgage branch operation. Typically, you find the same internal structure you'd find in any mortgage branch. The real difference comes in the control an independent net branch provides Vs. the typical control being part of a more traditional multi branch mortgage company. As a net branch, you are really not independent, you are a part of a mortgage operation that allows you the flexibility and control an individual branch owner would have. Flexibility in compensation plans for loan officers, file costs, and low cost expanded lending Vs. the investment a small independent branch would have for state expansion.
By joining forces with a larger mortgage company, you expand your potential and mortgage profits. Beyond money, as branch manager of a mortgage net branch, you'll have the freedom and opportunity to grow your branch operation as any entrepreneur would, with far more support and infrastructure. This maximizes your opportunities at success and means far more opportunity to profit.
Most mortgage net branches are required to create a viable and sustainable presence within their community. To achieve this, and maximize your opportunity to succeed, a traditional office is a must. Your net branch office builds your brand awareness and legitimacy while facilitating your successful integration within the business community. This mortgage branch presence helps you, and your team of loan officers, to penetrate into the consumer, home builder, and real estate offices within your community.
New mortgage net branch operations are generally limited to their primary state and a select number of secondary states. From there, and depending on branch performance, it's possible to expand to additional states that will facilitate your profit and growth.
As the Branch Manager of your operation, you can determine what compensation plans you structure for your mortgage branch. The process usually works in a way similar to this: After each loan closes, the funds and the completed loan file, along with a transaction report is submitted to post-close audit. After the file is audited for compliance, the balance is then made available via your mortgage branch account. Within 48 to 72 hours of deposit, funds will be paid to the branch account and you will be able to then authorize compensation to the originating loan officer in accordance to the loan officer branch agreements you've established.
The fact is, as a branch manager, your income is directly related to the ability of your virtual loan officer team to originate mortgage loans. After compensating your loan officers in accordance to your loan officer branch agreement, and after all overhead has been met for the branch (less operating capital reserve requirements) you'll usually be able to request excess funds be paid directly to you at any time.
As the branch manager, you would simply complete and sign a funds request and submit this document to your partner mortgage company's accounting department. Provided you have the funds available in your branch account, less required operating reserves, these funds will be paid to within the time frame established in your agreement.
After the file has cleared audit and the originating virtual loan officer has been compensated based upon the loan officer branch agreement, the transaction is typically considered closed. At that time, the remaining funds are made available to the branch manager account. As the branch manager, you can elect to accumulate these funds for future operating or marketing expenses, or you can elect to request excess funds be paid to you.
To Get Started, simply use our Branch Inquiry Form or use our Contact Us form to request a consultation from a net branch recruiter.
If you have an existing operation already, it's normal for 30 day in cash reserves to be required for operating expenses such as office, phone, electric, water, and any other recurring expenses which your office might have. If you are starting up from scratch, you will be responsible for providing adequate cash reserves that will insure your initial rent, phone, electric, and other office setup costs are available to be paid through a set period of time. In Addition, you will be responsible for any required monthly branch fees and any licensing costs associated with your branch operation.
There are many lenders around the country eager to work with you. The fact is, lenders change on a regular basis based upon performance. If a lender cannot consistently underwrite and close your deals, they are wasting your time and most certainly are costing you profit. Your lender network should allow branches to originate conforming, VA, FHA, 2nd mortgages, jumbo and super jumbo loans, investor deals, Alt-A, bankruptcy, condo, manufactured homes, rural, and more.
Upon review and acceptance of your operation as a ideal candidate for a mortgage branch network, a list of your preferred lenders is requested. If any of the lenders selected have already had their relationships terminated for nonperformance, you will be provided with the alternative lenders who offer the same programs and higher close rates. For the remaining lenders on your list, reasonable steps are often taken to review their program offerings and identify what requirements exist for sign-up. If their programs and requirements are acceptable, the process of integrating them into a lender network and performance tracking system is started.
Your particular agreement will outline the guidelines for terminating a net branch arrangement. This essential provision typically allows transition away from one another without creating tremendous disruption in services.
Beyond the initial assistance with planning your branch office opening, it's important that affiliate branch partners provide each new net branch office manager with hands on operational training as well as phone support for operational processes. These services usually cover everything from assisting with website development to business card ordering, credit report providers, and formal training for preparing your loan officers to succeed.
It's normal to be charged a reasonable monthly branch fee that will vary depending on your mortgage office partners. This fee covers the costs associated with providing the back end support your branch operation needs to successfully make profit and stay in compliance.
One of the many benefits you should receive when signing up with a program is the mortgage marketing experience the program's staff maintains. Experience is directly related to direct marketing to prospects, virtual loan officer recruiting, internet lead development, and traditional marketing lead development. Coupled with training, your branch opportunity for being successful and making large profits is limited by the investment of time and money you choose to make.
Your net branch agreement will detail processing requirements based upon licensing and regulations in each state.