ach net branch company will have its own set of licensing requirements based on their compliance department’s interpretation of the various laws. Net branch candidates should consider a structure that is “too
good to be true” to be exactly that. Licensing requirements vary from state to state, and each state’s process for completing the licensing can vary from nearly instant in notification states to many months in others. Candidates should have a reasonably developed marketing plan that identifies the specific states in which they would like to lend. The compliance departments of net branch providers should be glad to discuss that plan to help quantify the time and money that will be required to stay compliant.

Compliance is arguably one of the most important aspects of choosing the correct branch system. It is important to understand that a system that takes too much liberty in the interpretation of the laws may help facilitate a few extra fundings for your branch, but puts the entire branch’s pipeline in jeopardy at a later date with the possibility of regulatory audits.
 
 
 
 
 
 
 
 
 
 

© 2006 Branch Navigator, Inc.