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5 Factors To Consider When Evaluating Net Branches Opportunities

September 28th, 2021 // branchright
mortgage net branch opportunities USA

Net branching opportunities offer any mortgage loan originator the greatest fulfilment, being able to transform every home buyer’s dream into reality, particularly those buying a home for the first time. The loan originators work in a variety of ways.

A mortgage loan originator can either work for a small mortgage brokerage shop that’s licensed to operate in just a handful of states or work for a large mortgage company that’s licensed to operate in nearly all the states in the country.

If you are a top-performing loan officer, you actually have the option of starting a mortgage net branch supported by a larger well-known lending company. You have the potential to grow your business exponentially with the financial and marketing backing of the parent company.

If you are considering taking advantage of the net branches opportunities offered by a larger mortgage company, you can reap the benefits of such a business model. 

To help you choose the right mortgage net branch opportunities, here are 5 important factors to consider:

1. Business Model Confirmation

The term ‘net branch’ has become ubiquitous when it comes to mortgage lending. However, it is still important to confirm whether the opportunity being presented to you actually works on this business model. A net branch opportunity allows you to become a branch of a larger mortgage lender.

Simply put, you will be the owner of your mortgage net branch, earn remuneration by way of commission, and will be required to pay part of your earnings to the parent mortgage lending company. You will also have to follow the parent company’s stipulated guidelines. 

2. Parent Company’s Reputation

You need to consider the reputation of the company that you are getting into an engagement with. Keep in mind that customers typically don’t dig deep into the specifics of a net branch deal since it simply ties two entities as one.

You may find your company earning a bad reputation with customers, lenders, and regulators by engaging with the wrong company. Before signing, find out more about the company in question and make sure that you are dealing with a company that won’t tarnish your own reputation.

3. Company Size

The size of the mortgage lending company is another key consideration. A company with a good reputation passes this benefit to the net branch company allowing it to obtain more customers. Still, bigger might not necessarily be better. It is also possible for smaller companies to perform better in some areas.

4. Legality

If you are looking for net branches opportunities, you are probably looking for something long-term and not just an agreement that will last a few months. That’s why it is important to consider the legal aspect of that engagement to be sure that everything is done according to the law. After all, not every branch operation is set equally.

The law governs such engagements and if you are found in an unlawful one, your company could face heavy sanctions. All the states have different statutes governing the terms and these should be properly understood. While some states have specific laws, others simply state that net branching is legal, while others don’t have any statutes regarding this kind of engagement. 

5. Fee Amounts

In the net branch business model, you will be mostly earning remuneration by way of commission. The amount of fees involved will be quite important when choosing net branch opportunities. You must therefore compare the amount of commission obtained for each signed mortgage alongside the fixed cost of the mortgage lending opportunity.

The only way to make a profitable choice is by comparing the different free structures. It may actually be better to choose an opportunity that offers lower commissions but at the same time entails payment of lesser fees as opposed to going for the opportunity that offers a greater commission for a greater fee.

Final Thoughts

If you are reviewing different mortgage net branches opportunities, you will have to consider several different factors as clearly explained here. However, it is up to you to make a choice depending on the ease of making money along with the comfort levels you feel while representing the parent mortgage lending company.

Looking at Mortgage Net Branch Opportunities?

When looking for the ideal mortgage net branch partner, you envision someone that brings stability, guidance, opportunity, support, and technology. Partnering with a company such as Mortgage Right that excels in experience, opportunities, service, and offerings is key to your success.

Mortgage Right is driven by the commitment to offer unmatched customer service, consistent turn times, competitive pricing, and unmatched communication to our branch teams. We will customize our level of support to meet the needs of your business. 

If you are a highly skilled loan officer or a producing branch manager, contact us today either via phone or using the online contact form provided to learn more about the net branch opportunities that Mortgage Right offers.