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Benefits Of A Net Branch Mortgage

September 30th, 2019 // branchright
net branch

A Net branch mortgage is a corporate office of a banking association. A mortgage banker hires a loan office or loan originator to manage a branch in a certain location. While operating the branch office, the branch manager is responsible for managing operating expenses and supervising any staff on site. All loan officers are required to have a license to operate in most states.

Managing Your Mortgage Net Branch

Managing a mortgage net branch gives the loan officer the ability to hire other originators, that will work directly for them.  It also allows the net branch manager the ability to do business as a different entity while still working under the protection of a mortgage banking organization. These effective standards determine the development of a mortgage net branch and help level the playing field for a small brokerage branch. The branch manager is similar to an entrepreneur who can use their abilities and expertise, with the aid of a major mortgage firm or bank, to truly establish a stable business base.  As part of the agreement, most associate branching organizations give all required support in the form of licenses, training and accounting. 

Earning 100 % Commission

One of the advantages of managing a mortgage net branch is the ability to earn 100% commission. If a net branch manager decides to hire loan originators to work for them, they would need to set a commission agreement based on the originator’s production. For example, this could be 70% or more depending on the loan amount the originator is able to produce. Another reason why loan officers choose to work with a mortgage net branch is due to their current lenders not providing enough services and missing potential loans due to a lack of products. 

How To Spot A Good Candidate For Net Branch Mortgaging

Good candidates for this position are top-producing loan officers who are capable of bringing huge profits to their current firms but only take a certain percentage of that profit.  They are a team that already operates together successfully in a bank or mortgage firm and desires to stay united. They have higher potential for sales, earnings and business revenue. This option is great for an existing mortgage agent agency (or net branch office) that aspires to get multi-state and FHA/VA licensing without the difficult costs and setbacks involved in doing so for itself. One of the major factors that dictate net branch operations is licensing over various states. The parent company will almost always have nationwide licensing that supports its branch operations by helping them do business in many states they may not have access to. This assists in streamlining the complete services of a net branch. The conditions of a license are very expensive in some states and rigorous in others. Therefore, most small mortgage offices can’t afford it. Becoming a franchise means the net branch has economic support to expand branch licenses and that aids them to work in many markets with relative efficiency. 

Knowing what a mortgage net branch is allows prospective mortgage net branch administrators to prepare for the next step in mortgage origination. For further information visit our website at

Branch Right has redefined what a mortgage branching platform can be by giving you the lowest pricing on the market and some of the best consulting services in the industry.

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