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Net Mortgage Branch Companies 

January 19th, 2023 // Pearly Dean
net branch opportunity

A mortgage branch can also be referred to as an Affiliate branch; it is a branch office of an existing mortgage banking organization. The branch office is controlled by the branch manager, who is responsible for supervising the staff and monitoring expenses. Some branch offices are operated by one person, while others consist of other professional loan employees.

Who is a good candidate?

There are three. 

Firstly, there’s a strong candidate; this is someone who is done bringing in huge profits for another firm only to be paid their own percentage at the end of the month.

Secondly, another candidate is a team with a successful record of working in a bank or mortgage company office. They want to stay and work together because they have a high chance of closing sales and making more profits and income. They can stick together and take advantage of net branch opportunities.

Another good candidate is an existing mortgage broker firm that wants to get multi-state and FHA/VA licensing without going through the hassle of expense and delays.

What are the advantages?

Since the net branch mortgage manager is manning the branch of a mortgage-banking firm, one of the significant benefits is that the yield-spread premiums are not allowed to be disclosed. FHA & VA mortgages will give records for a growing percentage of mortgage loan volume as subprime products have significantly reduced. Approval to do those types of loans can be challenging, complex, and expensive to obtain.

However, a mortgage net branch manager has all these licenses. If your mortgage branch is a federal or nationally chartered bank, then you have the advantage and edge of operating your business nationwide without having to wait to get expensive licenses in individual states.

Another significant advantage is that most mortgage net branch managers would like to focus on originating. Some good net branch mortgage companies will provide everyday items like accounting and payroll and take care of compliance and regulatory obligations, thus enabling the branch manager to do their jobs to originate mortgage loans.

Aren’t all programs the same?

All programs are not the same. There are at least over 200 banks and mortgage bankers in the mortgage business at some level, and each of these programs differs. Some will allow a branch manager to broker their own loans, and some wouldn’t. Some play 100% commission; some don’t. Very few qualified branches can do business nationwide without a license, extra fees, and reduced profits to put loans through an “in-house” branch. Making a wise choice can be complex and tricky.

What are the biggest mistakes when selecting a company?

The biggest mistake is choosing a company that hasn’t gained enough experience and doesn’t have the required systems in place(accounting, support staff, etc.). to encourage growth. Most of them have only two things which include a mortgage banker’s license and an advertising budget. 

Becoming a part of a branch networking system can be very profitable and beneficial and help you thrive in the mortgage industry.