| Asking a net branch the right questions
If you are considering a net branch opportunity, below is a list of questions to ask.
1)States A company is licensed in?
2)W2 or 1099?
3)Brokered loans or captured production?
4)Are they set up for government loans?
5) LOS Requirements
6) Fees/Split
7)What are the fees to start up a branch? Are reserves Required? if yes how much?
8)Time frame of payouts/Payroll
9) Experience Required.
10) How long does it take to get approved as a new Branch?
11) What training if any does company provide?
12) What marketing support if any is provided by net branch company?
13) Is the Net Branch company willing to register a DBA, when allowed by state law?
14)Volume requirements
(15)
How many lenders has the company either been
canceled by or other wise terminated their
relationship within the past 36 months?
16)
Do they have any unresolved complaints filed
against them with the BBB in their home state?
17)
How many loans were funded in the last 12 months,
where commissions payments due branches were
withheld for over 21 days prior to payment?
18)
How many branches have they signed up where they
were not able to obtain a state license for a
branch location?
19) In the last 24 months how many loan officers or
branches did they collect a non-refunded set up
fee from, that never closed one loan?
20) Average Experience per manager?
21) Average Monthly Volume Per Branch?
22) Average Number of loan officers per Branch?
24) Average percentage per branch of, A PAPER,ALT A , GOVY, Subprime?
25) Average Gross monthly fee income per branch.
26) What percent of branches have a commercial office space.
27) Have they ever had a state license, suspended,
or terminated?
28) Have they received any fines from any state or
HUD?
29) Have they purchased E&O insurance? and if so will your location be listed as a covered business location on the policy?
30) Does the company require you purchase insurance for your branch location?
31) Will you be required to pay for any type of bonds?
32) Who are their lender relationships with?
33) How long have they been in business?
34) Do they parent have a parent company or a subsidiary?
35)Do they have any correspondent relationships? if so, who are they with?
36) What staff and systems do they have in place to provide service to branches?
37) Who is in charge of compliance? Does their
compliance VP have past experience dealing with a
net branch company their size?
38) What was there 2006 loan volume?
39) Do they have any restrictions on branches in the same city?
40) What if any lead programs do they have?
41) What loan products are available for direct lending?
42) Are they padding the banker products, .250%, .500% .750% 1.000%, ETC.?
And do they pad some loan products more than others?
43) Will they allow delegated underwriting to high quality branches?
44) Under what conditions if any will they allow for the use of a
registered DBA
45) What are their procedures for handling
pre- tax branch or loan officer expenses?
46) Do they allow any portion of commission income to be paid to a marketing company with pre-tax dollars, when the branch managers holds an equity position in the marketing company? If so, what is the MAX allowed percentage of paymentto the marketing company?
Do their policies with regard to these matters vary from state to state?
47) Do branches deposit funds directly into a shared account or do the checks get sent to corporate?
48) Is an outside payroll service used and if so
does the branch need to pay for their service?
49) What type of health insurance coverage do they have, if any?
50) How much money and or time has the corporate office invested in technology platforms?
51) With Regard to FICA, FUTA,SUTA,Workmnens COMP. Do branches need to pay the actual employer cost or is a percentage calculated that might be higher or lower than actual
costs to the employer.
52)If an LO, processor or other branch employee wants health insurance coverage, is the branch manager required to pay any portion of the premium for the coverage or will 100% of costs be passed on to the covered employee?
Credit to:LexieDeniz,lorimath2005, for some of these questions.
| 
