Mortgage Banking Solutions – MBS – Mortgage Banking Consultants – Mortgage Branch (Mortgage Net Branch)


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Note: The content below about Mortgage Branches (Mortgage Net Branches) is under review and still being developed.

Mortgage Branch (Mortgage Net Branch) Options

In today�s tough lending environment, Brokers are finding themselves under an incredible amount of pressure. In fact, some state governments are discussing legislation that will greatly limit a broker�s earning potential. The prospect of that added to the reality that many of the federal agencies are creating ways to lower income while increasing the work load per file should cause brokers to look at the alternatives. The following alternatives have both advantages and disadvantages, and we can help you choose which will be the best choice for you:

OPTION #1. FULL TRANSITION:

There are a small number of brokers or smaller independent mortgage bankers that have the necessary capital on-hand to fully transition onto an independent mortgage banking platform and remain competitive against their peers. While many may think that the above is the only reasonable option, it may not be your best option in this current market. To execute this option well, a lender should have no less than $1,000,000 in liquid assets in their company name. It is preferable to have $2.5-$3 million.

OPTION #2. BECOME A LOAN OFFICER:

Another option is to go work for a larger company as a loan officer and if you love to write loans but don�t love the management chores, this may be perfect for you.

OPTION #3. BECOME A BRANCH:

What we believe may be the most intelligent option for brokers who do not have the necessary $1million liquid net worth to become an independent mortgage banker, yet still want to maintain a management role, is to transition into mortgage banking by becoming a branch of a company that has already done so.

Becoming a branch is not the last step for brokers with less than the $1million net worth. It is often the first step of many in positioning yourself to become independent. Joining as a branch can provide a secure safe haven for brokers transitioning into banking to learn the banking side of mortgage and build their net worth to a level that will allow them to become independent should they choose to do so.

What are the disadvantages of a Mortgage Net Branch?

If the mortgage net branch corporate entity doesn�t offer competitive programs to its branches, managers will end up brokering (if they�re allowed to) out most of their loans. This defeats the purpose of becoming a mortgage banker and re-instates the requirement to disclose yield spread premiums.

There are a number of new companies in this business. Accounting systems typically hit a meltdown and rebuild stage at a certain level of growth. If a company hasn�t been in the business more than a few years, or hasn�t grown beyond a certain scale/size, it�s virtually certain they haven�t yet reached and survived this event. Many branch offices die when this happens, as it invariably will. Another consideration is the transition time necessary to make the switch. Most mortgage net branch companies (excluding banks which are exempt from state licensing requirements) will not apply for your state license until you have �signed on the dotted line� and then the clock begins on waiting for a state regulatory agency to receive, review, investigate and (hopefully) approve your license. Then, the process (and fees) has to be repeated for each state in which you wish to operate.

THE TRUTH ABOUT MORTGAGE BRANCHES (MORTGAGE NET BRANCHES):

Not all net branch opportunities and companies are created equally. It is true that trying to sort through all of the different types of companies and their offerings is a daunting task. You must determine which one is the best fit for your company and future goals. By the time you have landed on this page, you likely have learned that each company that is looking to attract branches is offering options ranging from Mortgage Net Branch to some version of a retail branch. How do you plan to figure this out and see through the flashy marketing materials to the true picture of each company? The answer is easy. We have already done it for you.

MBS has relationships with many of the top rated and soundly run Branching Mortgage Banks in the country. These branches have asked us to assist them in identifying highly qualified branches and have provided us with the profiles for those desired branches. When you call us, we can quickly identify which of those companies you may be a fit for. We will ask you to provide some basic information about the company, management and your production. We then get to work on identifying which one or two companies will be the best fit for you and will proceed with introductions to those mortgage banks.

The best part of all is that this is a service that we provide to you for FREE .

Contact the MBS team today to discuss the many Net Branch opportunities available today. For more information on your Mortgage Branch (Mortgage Net Branch) options, contact us now.

Still looking for more information on making the switch from mortgage broker to mortgage banker? View some of our resources:
Mortgage Broker to Mortgage Banker resource # 1

Simple information from MBS on mortgage branches (mortgage net branches). We can help you find the best Mortgage Branch (Mortgage Net Branch) solution for your company.

Do you have a question, comment, or suggestion for MBS about mortgage branch (mortgage net branch) operations or anything else? Please input your name, e-mail address, contact number, and any comments. A specialist from Mortgage Banking Solutions will contact you within 12-72 hours. All fields are optional.
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