| Should you be a Lo or a Net Branch?
Should you be a Lo or a Net Branch?
Your level of experience should play a key role in this decision. If you are new to the business you could learn a lot working around someone good at getting loans closed.
Assuming your not a rookie, how you get your business should weigh heavily in the decision. If your broker or bank is feeding you with leads maybe you should stay there. Buying leads often becomes a nightmare for many LO’s.
Comparing Commission:
If you are currently working off rates with heavy padding, a Net Branch lenders rate sheet might look really good. If you are working with little or no padding from a banker rate sheet the net branch lenders rate sheet might not look so good.
When comparing one opportunity against another it might be useful to create a mathematical formula to reach more accurate conclusions. If you are considering a flat fee program you could convert the flat per file fee into percentage points based on your average loan size.
Other Considerations:
If being an entrepreneur is in your blood, working as a loan officer under the direction of someone else, just may not be for you.
If you want to do loans in more than one state, a net branch might prove a better option.
Often people decide to go with a net branch because a broker never paid them commission and they felt they had earned.
Some LO’s, just feel like they can either process the loans themselves better or hire a better processor than their broker does.
Many LO’s feel held back, by their brokers small lender list.
Some LO’s would rather not disclosure of Yield Spread Premiums. Most net branch companies offer a banker program on at least some loan products.
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.
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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