| Eight Reasons to Net Branch!
Eight Reasons to Net Branch!
1) Because being an entrepreneur is in your blood, working as a loan officer under the direction of someone is just not for you.
2) You want to do loans in more than one state.
3) A better commission split.
4) Often timing is critical for many entrepreneurs who open a net branch. Because they have a limited time opening a broker shop of their own might not prove a good option.
While opening up their own shop is nothing like, reinventing the wheel, the Licensing, Bonding, E&O requirements all take time.
5) A small lender list is holding you back. Many loan officers go with a Net Branch because they are able to get more loans closed with a lender list 5 times larger than their brokers.
6) Non-disclosure of Yield Spread Premiums. Most net branches offer at least some opportunity to use a banker program.
7) Some people would rather sell, than spend time with, audits, insurance and accounting.
8) Lender packages are time consuming to fill out much less read. So many brokers will fill out the lender package without ever reading it, and later find they may need to repurchase a loan or pay YSP recapture fee. Brokers really should have these agreements attorney reviewed, of course many will not want to spend the money for this. Some loan officers know they will never read agreements or pay a lawyer to read them so a net branch is a safer option for them from the stand point of dealing with lenders.
Loan Officers considering opening a Net Branch have a lot of things to consider.
Here is a list of questions that might help in making that decision.
Are you currently making your living from the leads of your employer provides?
Most Net Branches provide no leads, so unless you have your own marketing plan, this could be a big challenge.
Are you able to process your own loans?
If you need to hire someone to process or contract out processing expenses could increase to such an extent as to offset the increased gross profits per file often associated with a Net Branch.
Many Loan officers become a Net Branch manager because they are tired of losing price wars to Net Branches.
Will you win more deals on price with a net branch?
Often Loan officers will open their own net branch just to add 30 states they can close loans in. How many out of state lose will you close?
One of the first things most entrepreneurs consider is cost. Often they will mistakenly look for the lowest fee they can find. Net Branch companies are in a business full of mine fields if they are not making profits when the sun is shining how will they save for a rainy day. Rainy days for net branches can take many forms, they can be loans they are required to repurchase, fines for lending violations, or labor law issues.
The bottom line companies in business many years making solid profits are clearly more likely to survive a storm.
Aapex Mortgage has been around since 1989
If you would like information on a non-padded net branch opportunity
give me a call at 630-918-8945 or visit :aapexnetbranch.net
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