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An Ultimate Guide On Elite Branch Relationship Building With The Right Company

August 2nd, 2022 // branchright
Elite Branch Relationship

Ever heard of an elite branch relationship? Here is an ultimate guide to building one that works with the right company.

If you’re familiar with mortgage net branching and the mortgage system, then you must have come across the term, “elite branch relationship”. This is a term you will often come across in many mortgage institutions and even some standard lenders. An elite branch relationship has often been described as a kind of relationship that exists between a large parent mortgage company and the mortgage net branches. But is that all there is to it?

In this article, you will be reading about elite branch relationships and all there is to know about it. In fact, this article is a definitive guide that will put you through the concept of branch relationships. 

Want to know more? Read on.

What is an Elite Branch Relationship?

This is a form of relationship that exists when a mortgage advisor forms an alliance with a large mortgage lender or institution in order to provide a wider range of mortgage benefits for customers. Rather than spending time and resources trying to register their own company and build a name and reputation, a mortgage advisor instead operates under a bigger mortgage entity known as the parent company. 

The advisor also gets to enjoy the  licensing of the ‘ parent ‘ company but still gets to make his own benefits and enjoy it as his own. This type of relationship is sort of a division and is also known as ‘ net branching. ‘

The aim is that you can run the net branch as your own even though it’s an entity of the mortgage institution and you do not have to worry about license and other registrations since all that are already being shouldered by the larger bank.

How Are Expenses Controlled In An Elite Branch Relationship?

To safely and understandably achieve this, well written and properly documented commissions agreements are laid down so that lenders and net branch managers can establish clear expectations for each other and then business can be carried out smoothly with both sides of the party getting their profits.

Here, it is important for branch managers to be non-producers which means that they cannot get involved in the day – to – day operations and decisions of level loans. In as much as this boundary has been clearly spelt out and enforced, the branch managers who are non producers can be paid on the total profitability of their branch which is mostly a form of motivation for net branch managers who have the entrepreneurial spirit.

For a manager who’s a ‘producer’, the lender has the ability to control commission and the BPS paid out per loan. This can be achieved in several ways. One of the major ways this is done is to align the lead referral source of loan with the payment structure of the commission. This means that if a lender brings in a loan, the commission the loan originator gets paid on that loan is lower than if the loan itself was sourced by the lead originator.

How To Choose The Right Company

Once you decide that an elite branch relationship will work for you, here are the factors you should look out for and what you should consider;

What Type Of Mortgage Company Is It?

This is important especially if you have to choose between a refinance shop and a purchase shop. If you and your loan officers only engage in refinance, you must ensure that the rates are competitive enough with the “parent ” mortgage institution that you decide to work with.

Not being sure enough might be devastating for business.

Determine Their Overlays

What are their main overlays? Check out their credit scores, their balance limits and collection limits, what is their debt to income ratio overlay? Do they allow you to broker out deals?

All these are questions you must ask when choosing the right company with which you would form a relationship with.


Forming a branch relationship takes a lot of work. However, we help you do it right at the branch right. Every factor listed above cannot be undermined, they are important for making the right decisions.