Why would an established broker opt for the net branch system instead?
There are two primary reasons for a mortgage professional to choose branching rather than continuing as a broker. First, many net branch systems offer internal banking, and therefore do not require any disclosure of rebates on banked loans. Secondly, the convenience of having all the operational functions handled by a larger entity is appealing so that the business can focus on productivity.

Why would an established loan officer become a net branch?
Most high-producing loan officers find that they are self-sufficient in building and maintaining their pipeline and only benefit by working for a broker by the use of the broker’s license, and some dependence on the operational functions provided by the broker. Becoming a branch manager provides the same value as it relates to licensing and operations, but not at the cost of giving up 50% or more of earned commission to the broker.

Am I ready to be a net branch?
A five-minute confidential discussion can easily answer this question. Certainly when loan officers believe that they have a reasonable amount of control over their clients or their lead source, it is time to make arrangements to keep more of the money they earn rather than sharing it with a license holder. Brokers commonly choose net branching for the convenience of a production/operations partnership, and then earn more money by simply excelling at productivity.

Do net branch companies allow loans to be brokered to other lenders?
Many net branch companies have their own banking operations and establish net branch systems to control production. However, the market for net branch systems forces the industry to be permissive in allowing branches to broker to other lenders.

What are the costs to get started?
Some companies will charge sign up fees, or application fees, while others will charge nothing. Most companies will, of course, pass along licensing costs to the new branch, and this can vary from a few hundred dollars to a few thousand. There are systems that rely on fees collected from the branches for revenue rather than relying on profits from banking operations. Start-up costs will typically be greater in fee-based systems compared to those concentrated on banking operations.

Which is better—fee-based systems, flat rate, or commission splits?
This question will have a different answer for each person that asks it. An analysis of the branch candidate’s objectives and goals, along with a look at typical production levels should provide a clear direction in choosing the right net branch system.

What kind of candidates are net branch companies looking for?
Most systems want what the branch candidate wants--a measurable indication that the other party will be trustworthy and reliable in satisfying their half of the partnership. Net branch providers want a reasonable amount of experience, steady production, and creditworthiness. The minimum requirement for each will vary from system to system.

How do I find the right net branch program?
Net Branch Navigator will work directly with you, confidentially, to measure your specific goals with the offerings of net branch providers. The convenient inquiry form to the right can get you started. Of course, we would be glad to take your direct call as well at 949-713-5363.

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© 2006 Branch Navigator, Inc.