The US Supreme Court will be rule on OCC preemption regulation as it applies to operating subsidiaries of national banks on an appeal of Wachovia Bank, N.A. v. Watters, should this ruling favor Wachovia it seems logical more banks will get involved in net branches by any other name.
However, many of these will attempt to recruit LO's and branch managers into their padded rate programs.
Some will allow brokering out at a higher price. There are a lot of draw backs to this type of program.
Rates with thick padding may prove a hard sell to a borrower.
Underwriting is often slower.
Underwriters can either be too strict or to loose with guidelines.
Quality control may be lacking.
Underwriters may react to files from some LO’s better than others for personal or political reasons.
When picking a branch look for:
One that was here yesterday, is here today, and will be here tomorrow.
Many will open, many will close and only a few will survive the test of time.
Any Company in business less than 10 years has not yet passed the test of time.
Are their fees to low? I know this seems like an odd question, however 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 is, companies in business many years making solid profits are clearly more likely to survive a storm.
Below is a small list of Net Branch Companies that have all been in business at least 10 years.
Aapex Mortgage
Http://www.aapexnetbranch.net/
Other Considerations
Will they require you to rent a commercial office space?
Do you meet their volume requirements?
Do you meet their experience requirements?
Will you be required to spend money every month to pay a software provider for them to monitor your pipeline?
How easy is it to get information from them?
If you can go their web site and download a lender list, State license list, branch agreement, ETC, It is a good indication signing up with them might be easier than some companies.
How long does it take them to get a branch up and running?
Some branches take 48hrs or less while others take more than 48 days.
Will you need to fly to their corporate office for training?
Will they encourage you to broker your loans, or will you be pressured to deal with padded mortgage banker rate sheets?
Will they reward you for attaining hire volume levels with reduced fees?
Do they require you put up money into a reserve account?
How fast do they pay?
If you would like information on a non-padded net branch opportunity
give me a call at 630-918-8945 or visit :aapexnetbranch.net
