From MortgageWiki
[edit] Definition
What is a Mortgage Net Branch? Essentially, it is like a franchise of a mortgage company similar to a franchise of a company in any other industry.
Like McDonald's or any other franchise, a mortgage net branch operates under the name of the parent corporation in exchange for light recurring fees, which vary from company to company.
A net branch manager typically has the ability to open his or her own office, hire his or her own loan officers, and run his or her business as desired as long as practices fall within the rules and regulations set forth by the parent company.
Typical fee structure options include:
- Flat-fee per loan closed
- Percentage of gross revenue per loan closed
- Minimum/maximum monthly fee
[edit] Why Net Branch?
Many ambitious loan officers and even former brokerage owners have opted to open a net branch instead of opening or running their own mortgage brokerage. Among the reasons why some would choose this route:
- Accounting, compliance, HR and other day-to-day essentials are often covered by the parent company
- A larger company can often secure better relationships with lenders, including correspondent/banking status
Instead of listing all mortgage net branch companies here on this page, there is a category page where you can find a list here.
