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The Mortgage Branch

By Justin Fitzhugh | Other/Just Looking in Independence, OH

The Best Alternative to Mortgage Net Branch Opportunities

As new regulations begin to take effect, mortgage net branch opportunities become gloomier. Today, it is better to partner with a full eagle lender, than join a net branch company.

The problem stems from the fact that net branches are banned from any origination activity related to government sponsored products. Or in other words, legitimate approved lenders are banned from partnering with net branches to originate mortgage of any government related products.

With the barrage of new regulation, new loan originator limitations (The 3% cap “points and fees” limitation), new qualified mortgage definitions, informing consumers of their right to get a free copy of their home appraisal, additional appraisal for higher priced mortgages, Congress authorizing HUD to make changes to reverse mortgage program HECM, and the upcoming purchasing limitations placed on Fannie Mac and Freddie Mac, any loan originator is better of working with a full Eagle lender.

Net Branch banned
For the most part, Full Eagle lenders have a fully staffed in-house underwriting department, legal and counsel department, and loan scenario support. These mortgage branch services are paramount to have a successful branch in the long run.

By working with a lender that has an in house underwriting department, the mortgage branch can expect fast turnaround times, and fast closings. If working with a lender that is committed to serving its partners, the branch manager can expect to be in the know all the way through approval. 

When working with a lender that has a fully staffed legal and counseling department, the branch can expect to be notified of law and regulation changes promptly. Better yet, competent legal department are likely to help branch partners to implement new policy in an effortlessly and efficient way. 

Last but not least, when a lender provides loan scenario support, branch managers are enabled to help loan officers offer a better customer service. This is because the loan officers will give better information to a prospective borrower, rather than simply giving ambiguous answers that can end up in misunderstandings and unmet expectations. 

As I mentioned earlier, it is the barrage of new regulation that should signal to any person looking for net branch opportunities, to instead partner with a lender that can offer a sound foundation.Net branch companies cannot offer a lasting successful business model because the branch under this model is banned from participating in the origination of government sponsored products; but the demand for these products has increased, and despite the looking stepping back of government stimulus, I believe these products will stay in the market for much longer that we think. 

At Nations Lending Corporation we are aware that our business sustainability depends on the success of our branch partners. As a full eagle lender we extend full support to branch partners: fast underwriting, no audits (we handle all audits), quick notification of law and regulation changes, and loan scenario support. If you are looking to open a mortgage branch, or you are looking for a lender that can provide tools and products to compete better, visit our website to learn how you can partner with us.

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