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Let me explain something. I am not sure many know about this.
There are different types of lenders and licenses.
1: Bank Charter
2: Real Estate Investment Trust (REIT)
3: Broker license (I have to look up the official term but brokerages use a different license than the 2 above) <----If someone knows (SECRET!, Erik, anyone) save me the trouble because I cannot look it up until Monday
I am only posting what I know of.
Bank Charter does not require loan officers to obtain a broker license in several states. It is the most lenient type of license for a loan officer to be a part of.
REIT is similar but a few more state require licensing than a lender operating under a bank charter
Broker license normally requires licensing in more states than the other 2.
I will find more information and post it soon.
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With that in mind Bank Charter is typically company only with in-house lending, tends to hold some of their paper, not common to be a broker/banker model. But, when RBC Mortgage was in business it was operating on a Bank Charter and was the mortgage lending division of Royal Bank of Canada. Hence "Bank" because they have banks. They could broker too. I personally do not know any other companies that are like this but there likely are some.
REIT typically is where you find Banker/Broker. They still are considered a bank by many lending laws because they have in-house lending. These companies normally either sell their loans to investors or more popular they sell them directly on Wall Street cutting out the middle man (investor)
Broker... well you likely know how your brokerage works. Wholesale. Correspondent lending is available to allow brokerages to operate somewhat like a bank with special perks.
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My company is owned by New Century Financial. They have wholesale sub-prime and wholesale prime lending.
Their in house lending is Home123 Prime. This is me. This is what I described. We have New Century Sub-Prime in-house and all the prime lending and government. We can also broker loan to other wholesale companies i.e. sub-prime and prime (Countrywide, Chase, Interfirst, First Franklin, Argent.. Like Brokers)
Home123 Sub-Prime is a retail unit selling only New Century wholesale products. Prior to the acquisition of RBC Mortgage New Century did not have prime lending. That company is not anything like ours. The pay structure is not the same, they do a lot of direct mail, and they are kind of like Full Spectrum Lending which is Countrywide Sub-Prime retail.
Can someone say rep points? Gees. I will get more info for you though about the different licenses.
__________________ Greg Phillips Manager Fairfield Mortgage Company Web : Home Forums Blog | 
