Growing your net branch business

Growing your net branch business.

Should you hire more loan officers or is there a better way?

After becoming branch managers many successful loan officers try to duplicate themselves by hiring more loan officers. It is a logical step. But is it the right step?

The internal conversation usually goes something like this: “If I can hire 3 loan officers and make an override on their loan production, I can use that income to pay overhead and I can keep more of the origination income from my personal production.”

Sometimes this does work out as planned but many times branch managers find that managing loan officers takes up so much of their time that their personal production suffers. Helping with someone else’s clients, troubleshooting operations problems, trying to help with underwriting and other investor loan problems all take away from the managers personal productivity.

Then there is the successful loan officer that the branch manager mentored through the learning process only to have the producing originator leave to open their own branch office. Instead of being able to reap the rewards for mentoring a loan officer the branch manager now has created another competitor.

Is there an alternative?

I think we have lot to learn from successful Real Estate Agents. When an agent wants to increase their business many times they hire an assistant. The assistant helps with the non income producing tasks that come with more business. There is more follow up, more appointment setting, more calls and emails to make sure business is moving forward. By delegating these tasks to an assistant the agent has more time for core activities that generate income.

There are a number of benefits to hiring an assistant instead of hiring more loan officers.

An assistant’s focus is on you and your business not on growing their business.

An assistant’s income is fixed. It is either hourly or weekly you are not splitting fees.

The cost to benefit ratio is a good one. If an assistant can help you increase your productivity by 40% how much is that to you in net income?

An assistants work can have a synergistic effect on your production. synergy = “The interaction of two or more agents or forces so that their combined effect is greater than the sum of their individual effects.”

In plain English that means that more than one person focused on that same goals can produce higher results.

Hiring an assistant instead of hiring more loan officers could be a better answer.

If you find this information helpful please let me know. I always welcome suggestions, comments and new subscribers.
(To subscribe please visit my new blog home http://blog.netoriginator.com)

Mortgage Net Branch Opportunity

How does the "meltdown" affect net branching?

Does the "meltdown" affect net branching?

As a nation and as an industry we are in uncharted waters. I doubt anyone can accurately predict the outcome. What we can do is make some estimates on how the mortgage meltdown will change our industry in the short term - The next 18 - 36 months. Purchase - Purchase - Purchase - FHA - FHA - FHA - Reverse - Reverse - Reverse.

You need to be aligned with a company that is is in a good position to originate FHA loans and Reverse mortgages in your market and you can for the most part eliminate refinance out of your business model.

Refinance will not disappear completely but I believe you will see the numbers continue to drop.

With home values dropping home equity is going with it. Even the best markets have lost 20% - 25% equity. This greatly reduces the refinance market. With the problems Fannie and Freddie are facing FHA is going to be the primary source of mortgage funds in the short term.

If you are not with a company that is in good standing with FHA you should consider making a move.

If you find this information helpful please let me know. I always welcome suggestions, comments and new subscribers.

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Mortgage net branch refinance opportunity

The LIBOR INDEX is rising... Refinance opportunity for net branch



the LIBOR rate has really spiked upward in recently.

What is the LIBOR and why is something your clients should be concerned about?



From a report on Bloomberg this week..
"The overnight Libor rate in U.S. dollars soared 3.33 percentage points to 6.44 percent today, its biggest jump in at least seven years, according to the British Bankers' Association. The one-week rate rose by more than a percentage point, to 3.88 percent from 2.49 percent on Monday, and the one-month rate increased to 2.75 percent from 2.5 percent."

LIBOR is short for London Bank Inter Offered Rate. It is a rate index that is set by the British Bankers' Association.

Created in the mid 80's the index became widely used in the mid to late 90's in the US mortgage markets as the preferred index for adjustable mortgages. Most subprime and about 40% of conforming adjustable rate loans are based on a LIBOR index.

The LIBOR is set by the British Bankers' Association so these loan rates cannot be controlled by the FED.

If the LIBOR's recent increases continue this means that the adjustable rate mortgage payments that are tied to the LIBOR could more than double.

In recent years the LIBOR rate has been a safe place for borrowers looking for the lowest payment.

Most LIBOR based loans are tied to the 6-month index. This means that the rate is a rolling 6 month average. So will a short term spike cause rates to jump? No. But an ongoing increase will.

If you have past clients in a LIBOR rate keep a very close watch on the monthly rate.

This would be a great opportunity to make contact with these clients and make them aware of the possibility and to alert them that they should not wait for the rate to spike before they have an exit strategy.
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I always welcome comments and subscribers - I have moved my blog to http://blog.netoriginator.com

Please visit me there to subscribe or comment.

Thanks,

Lee W.

The mortgage net branch blog is moving to a new home!

This blog is moving to a new home. The new address is http://blog.netoriginator.com


We are moving all content over to the new site, we will copy posts from the new location here and we will leave the existing information in place.

Please visit and bookmark the new location.



(image courtesy of Jane Cleary, www.digitalenvie.com)

North Carolina law tougher on mortgage branches, originators and lenders

A new law is going into effect soon in North Carolina that will eliminate more originators, mortgage branches and companies in that state.

Very soon if you do not have a credit score of 600 or higher, your out!
The net worth for a broker now will $25,000 and require audited financials.
The education requirements will now require 3 time more classroom hours.

Where does the N.C. brokers association - NCAMP stand on this?
Apparently on the sidelines.
A recent news article quoted Jennifer Salemson of the N.C. Association of Mortgage Professionals “Anything that would improve the quality of the mortgage industry, we would view as beneficial.”

Is more education a good thing - certainly it is and increasing the current 8 hours to 24 hours is not a burden on anyone and can only help originators stay up on the ever increasing complex laws and regulations we all are faced with.

I'm not so sure about the credit score requirement or the audited net worth requirement.

When has a good credit score reflected a persons trustworthiness?

Does anyone remember that one of the reasons we have a crisis in the mortgage industry is that underwriting basics were thrown out the window and replaced with credit scores as the deciding factor?

What is the credit score requirement in North Carolina for tax preparers, attorneys, financial advisers, insurance sales people, auto finance and sales people, home builders, etc.?

I doubt that any one in North Carolina politics has researched the cost for a small company to get audited financials. The cost can be from $750 to $2,500. This alone will greatly reduce the ranks of mortgage professions in the state.

Today I visited the NCAMP web site to see what they had to say about this up coming change - the only info I found was about the original bill passed in 2001.. isn't this 2008?

North Carolina is leading the way once again in legislation that will harm the people of their state instead of help them.

Mortgage Bank's, Net Branch, and FHA Nationwide

I have seen an increase in net branch recruiters working for affiliates of Federal Savings Banks stating that you can originate FHA loan nationwide from any location.

I have yet to see one of these banks named in any marketing information.

They use the F.S.B.'s exemption from state licensing laws as the basis for this ability.

It is true that a federal charter grants the bank an exemption from many state lending laws.

The problem is that HUD, not the states regulate the origination of HUD supervised loans - FHA and VA.

HUD is a federal agency.

So the question is can working for a bank as a net branch allow you to originate loans anywhere in the country?

That is what everyone is being told, that is the way many of the recruiters are attracting good people. If it was true life would be good. You could originate loans in California, Pennsylvania, Florida, Texas, Utah, anywhere that you can get an application. It would be nice. It would be better than nice. It would be great.

That is why many people are considering this type of opportunity.

There is only one problem. It's only one problem

But it's a big one.

According to HUD a bank's Federal charter does not exempt the bank from HUD rules for originating FHA loans.

There is an FHA term called "Area of authority". According to HUD this applies to all originating entities, brokers, lenders or banks. This is the geographic area that a branch or loan officer is authorized to originate from within.

I emailed HUD with a simple question.
---
From: Lee Walsh [mailto:xxxxxx@yahoo.com]
Sent: Thursday, June 26, 2008 11:26 AM
To: FHALender
Subject: net branch question

Hi,

I am writing to ask about several "net branch" companies who are marketing that they are a division of a bank with a federal charter. They are advertising that as one of their loan officer or branch managers that I would be exempt from the state licensing and HUD branch restriction concerning states I can originate in from my home state.

They are telling me that because of their federal charter I can originate in all states from my home state.

Is this true?

Thank you for your assistance

Lee Walsh
-----

Here is the answer I received from HUD.

RE: net branch question
Thursday, June 26, 2008 7:04 PM
From: "FHALender"
To: xxxxxxxx@yahoo.com

It is true that States exempt banks from their State licensing requirements. It is not true FHA allows a bank to originate anywhere it wants.

So, please read over our FAQs on branches and see if they help. If you want to write us again, please provide the bank’s FHA ID number and who you are talking to.

-----
Here is the FAQ information HUD forwarded with the reply.

In order to take FHA loan applications in a State, you must first meet all requirements of the State (either have a State license, exempt from having a license or State doesn’t require a license) and have that State in the FHA lending area of your home office or a branch office that is registered with FHA.

Each lender office’s “Lending Area” is composed of the State that the office is located in plus all adjacent States where a FHA registered branch or its home office. This geographic restriction does not apply to streamline refinance loans. In the FHA Connection, a lender can see the lending area of each of its registered branches and its home office under the section entitled AAFB (Areas Approved for Business). The AAFB is a listing of all HUD field offices located in the States within the lending area and is located under the Institutional Profile tab in the Lender Approval section..

See this link for HUD's list of "Lending Area's" based on the state where you are located.

So the question you have to be asking (I asked myself the same question) is: If it is not legal how are they doing this?

This answer is an easy one. They (the bank) have not done their due diligence to determine if this practice is legal. It took me one simple email to HUD.

I don't think that any major banks are doing business this way. They are smaller banks that have the federal charter.

For more information please visit NetOriginator.com

Part 2 - FHA Net Branch Opportunities - are they all the same?

In the last post we covered broker vs. lender for FHA loans.



Now let's take a look at the next items on the list of important criteria you should consider if you are considering a net branch opportunity and intend to originate FHA loans.

• FHA originated using the corporate address or the branches?
• Corporate processing of FHA loans or at the branch?
• Level of the company's experience with FHA?
  

Many companies offering net branch programs will let a branch originate conventional mortgages from the branch but they will reguire the net branch to send all FHA transaction to the corporate office for processing.

Why is this a problem?

There are several important issues that make this a practice you should be concerned about.

Control - the net branch has lost local control of their loan. The processing and placement is now in the control of someone who at best you have had phone conversations with. The borrower, real estate agent , and closing agent are now working with someone else. The loan is out of your control.

Compliance - when you put your name on the 1003 with an address that is not your branch address you are putting false information on the document. Some companies have lost their ability to originate FHA loan for putting false information on a 1003. A company that uses the centralized call center approval from HUD for FHA loans is stating to HUD that all FHA originating is done from that office. If you take the application (originate the loan) locally and then sent it to the call center for processing you are violating HUD law and could lose your license.

A key point to remember when you are looking for a net branch opportunity is that not all companies have done their homework when it come to compliance laws.

Some of this is due to lack of experience and some is due to a lack of concern for the rules.

You always investigate the net branch companies experience level. This is even more important when you are going to originate FHA loans.

HUD does not alway move swiftly to stop problem companies but the do catch them. When they do it either results in large fines and or loss of license.

Do your homework. Make sure you are really partnering with a net branch company with a proven track record with HUD (FHA / VA) loans.

For more information please visit: NetOriginator.com

FHA Net Branch Opportunities - are they all the same? (part 1)

OK you have decided that you are going to focus on FHA and to do that you are going to join a net branch company.

Are they all the same? Is FHA the same everywhere?







That's an easy one to answer. No!

Here are some of the key differences that you should understand when choosing a company to work with.

• FHA as a lender or as a broker?
• FHA originated using the corporate address or the branches?
• Corporate processing of FHA loans or at the branch?
• Level of the company's experience with FHA?
  

These, in my opinion are the primary points to focus on when deciding which company to join if FHA is important to you.

Let's talk about the first item on the list.

Does the company function as a lender or a broker for FHA?

There is no right answer to this one. It's really what is important to you because there is a trade off between the 2 options.

If the company closes FHA as a lender this means in most cases that you are not getting the true wholesale price on your FHA loans. The company has to pay for the expanded operations cost and will have at least a 1% - 1 1/2% point markup on the pricing. Sure the get a slightly better price as a correspondent but not the full amount they have to mark up the price.

There are several other disadvantages.

• If you are closing FHA as a lender you cannot broker FHA loans. In other words you lose the option to act as a lender or a broker. HUD has a rule that says a HUD / FHA approved mortgage company cannot act as a broker if they also act as a lender. So if you have an FHA loan that your company's underwriters does not like you do not have the option to broker that loan to an investor that does like the loan.
  
• Most lenders sell their closed funded loan to one or two of the big 10 wholesale investors. This limits the decisioning. If you take the same FHA loan and submit it to 3 different investors usually you will get 3 different answers. The difference could be pricing, conditions, or both.

The advantages to closing FHA as a lender are that you do not have to disclose the YSP you are making and you can say you are a lender.

If the company closes as a broker your disadvantages are primarily that you have to disclose your YSP.

The advantages are that you can shop different investors to find the right price and conditions.

In the next installment we will discuss the other differences.

Important questions to ask when looking for a net branch company (part 2)

In the previous post we looked at the common questions everyone asks.

"What are your net branch fees and how long will it take to get approved?"



I speak to people everyday that are looking for a mortgage branch partnership. Many times the key questions are not asked.

The questions that I think are important to ask are:

1. Is your company HUD approved? - Also do they use the corporate address for all FHA loans or does each branch get HUD authority? In today's market you have to have FHA! It should be a flag if you are told all FHA goes through the corporate office. There are several reasons why this is a problem. One is "Neighborhood Watch". A centralized operation exposes the corporate address to potential company wide loss of HUD license. One of the other problems is that the address on the 1003 should reflect your real location.
   
   
2. If the company is HUD approved - how long have you been approved? - This is a very important question. A company that recently obtained their FHA approval is a novice in this area of lending. They are going to make errors that every novice makes. These errors could cost everyone in the company the ability to continue to close FHA loans.
   
   
3. Has your company ever been suspended or fined by HUD? The company's track record with HUD is a good indication of their compliance knowledge and ability to manage their company.
   
   
4. Have any wholesale investors cut off or suspended your company in the last 24 months? - This is another great indicator of current and future problems. Suspensions or termination by wholesale investors tends to be viral. If it happened at one company it will happen at others. You do not want to work with a company that is losing wholesale investors due to audit and compliance errors.
   
   
5. How many branches do you have active? - Many companies have hundreds of branch offices and many cannot service the number of offices they have. This leads to high branch turnover. High turnover in any sales organization leads to problems.
   
   
6. Has your company had any buy back requests from investors? - How many buy back requests does it take to force a company to close their doors? Not many. If the average loan is $200,000 it only takes 5 to put the company $1,00,000.00 in debt.
   
   
7. How long has your company been in business? You might be surprised at the answers you get to this one. You would assume that it takes years to establish a company and build a large footprint. My personal opinion is that an answer of less than 5 - 8 years is a big whopping red flag.
   
   
8. How long has your company been involved in setting up branches? "Just a few years" would be a flag to me. A company with limited experience managing a large number of branch locations will go through a painful learning curve and take their branch managers along on the bumpy ride with them.

Is this every question you should ask? No - but this will give you most of the important ones. Each branch has a little different criteria that determine what is most important to that branch manager. The bottom line is do your homework. Remember the old saying "Look before you leap."

I always welcome comments and questions.

Important questions to ask when looking for a net branch company (part 1)

What are your fees?

How long will setup take?

These are the most common questions I am asked.

Are they the most important?

My answer is NO!

These are important questions but just about every company is close to the same answer.

Most companies are between $350 and $500 per file.
(We are $395 in most states)

Most companies are about 3-7 working days for your branch manager application to be approved.
(We are 2-3 days.)

Each state has different branch licensing requirements - so that step is dependent on which state you are in.

The questions that I think are important to ask are:

1. Is your company HUD approved?
2. If yes - how long have you been approved?
3. Has your company ever been suspended or fined by HUD?
4. Have any wholesale investors cut of or suspended your company in the last 24 months?
5. How many branches do you have active?
6. Does your company have any current buy back requests from investors?
7. How long has your company been in business?
8. How long has your company been involved in setting up branches?
   

In my next post I'll explain why I think these are the most important questions to get answered if you are considering a net branch opportunity.

Another Net Branch Company Shuts It's Door - Global Mortgage Inc.

I just read the news that another national net branch company - Global Mortgage Inc. located in Clearwater Florida - has declared CH-7 bankruptcy.

Global like many others in the net branch segment of the industry was plagued with investor buy backs and operations problems that were caused in part to poor management and also from the pain brought on by churning branches.

At one time they had several hundred branches and operated in over 40 states.

My concern is for the branch managers and loan officers who will lose a lot on money in this melt down.

The current problems in the mortgage industry are a lot like the dot com boom and later crash of the 90's. For a while everyone was running down the road ignoring all of the warning signs - then when they plunged over the cliff everyone was surprised.


Nothing replaces common sense business practices, nothing replaces a little conservatism when it come to financial matters. Most of the net branch companies that have folded exercised little caution when it came to business, they demonstrated little concern for lending rules and regulations.

Most net branch companies closed their doors (imploded) because of the investor buy back requests that hit them like a freight train.

At ANMC we are growing while others are going into BK.

We have no buy back requests from our investors.

We grow at a controlled rate.

We do not have rapid branch turnover - some of our branches have been with us for over 5 years.

We do not bend or ignore lending regulations to make a dollar.

We support on branch network with solid business management.

I always appreciate subscribers and welcome comments and questions.

For more mortgage net branch information visit: NetOriginator.com

Originate in other states - part 2

In the first post on this topic I mentioned that some net branch companies are promoting a system where you can get around the "other" states licensing requirements to originate and still get paid.

I learned about this from a prospective branch manager when I asked if she was considering other companies. I asked what is was about the other company that she liked - she mentioned the ability to originate in all other states without getting the normally required licensing.
Naturally I wanted to know more, so I asked for the URL.

Sure enough there it was right on their front page. Originate in all other states - licensing not required!

When I read the details I was amazed at how they are doing this.

They are paying the originator as a 1099 contract processor on the loan.

I know as an originator that sounds good. The ability to make loans in all states right now with out going through licensing, compliance, continuing education, back ground checks, etc.

But take a minute a think it through - according to RESPA, HUD, and every state that requires licensing and / or has lending laws on the books fees must be reasonable.

Let me ask the question this way; If you were an auditor from HUD or any state agency would you consider it a reasonable fee for a processor to be $3,500 of a $4,000 total fee?

Would you consider that a fair fee for a mortgage originator who does the lions share of the work?

I feel pretty confident that your answers are No to the first question and Yes to the second question.

This falls into the same category as paying loan officers as 1099 contractors or paying an LLC to avoid income taxes. Is it legal? No. Are companies doing it? Yes.

If you are a professional in this business and you are planing on being around for the long haul. Participating in these business practices will only guarantee a quick and painful end to your business.

It will only take one unhappy employee to blow the whistle on these practices and then everyone involved will in it knee deep.

If you have questions about being paid with a 1099 instead of as a W-2 employee see the first post on this topic.

I always appreciate subscribers and welcome comments and questions.

For more mortgage net branch information visit: NetOriginator.com

I want to originate in all states! - Are you sure about that?

I want to originate in every state where you are active.

In my work speaking to prospective branch managers I hear this statement every day.

My answer / question is always the same. Are you sure?

I then ask several important questions.

• Have you researched the licensing requirements for loan officers and branch offices in the states where you are interested in originating?
  
• Are you aware that many states require licensing fees for a branch office to originate in their state?
  
• Are you aware that many states also requires fees for loan officers to originate in their state?
  
• Do you know that many states also require some type of continuing education in order to originate in their state?
• Do you know that some states require a physical location to originate in their state.
• Are you aware that some states like North Carolina require each loan officer to be licensed and that the education and test must be taken in person?
  
• Are you aware of the state specific compliance requirements for the states you where want to originate.
  

Some people thinking about opening a branch office of a national company think that they can originate in every state where the company is active without any additional time, effort, licensing or money. Unfortunately that is not true.

An "out of state" originator interested in developing business in Florida, California, Maryland, North Carolina, South Carolina, Ohio and many other states has to comply with each states licensing, education, disclosure and compliance requirements. Usually it does not work as intended.

Don't misunderstand me, there are situations where you should work in more than one state.

• If you are in a border city like Kansas City, Missouri - you should also be licensed in Kansas.
• If you already have branches setup in more than one state - you should continue when you change companies.
  
• If you have established referral sources in other states - you should consider the investment of time and money to capitalize on those relationships.
  
• If you have an established office, you want to expand into another area and are prepared financially - that is a sound business decision.
  

The main point I am trying to make is that more or bigger is not alway better. Most offices "find" the majority of their business within 25 - 40 miles of their location.

Another related statement I hear is that there are other companies that allow me to originate in all states with out going through the licensing and education requirements.

I will try to address that topic in another post.

I always appreciate subscribers and welcome comments and questions.

For more mortgage net branch information visit: NetOriginator.com

Why Virtual Mortgage Net Branch?

A virtual net branch - web based loan origination system.

Is using a web based loan origination system really better that a PC based system like Byte or Point?

A personal note.. I have been a Point user since the early 90's and have spent hundreds of hours learning how to make it sit up and beg. Custom fields, data extraction, custom reports, making it wide area network usable, fighting to make data secure, etc. I like the application.

With that said I think Point is the best PC based LOS, but it has some major draw backs. Data security is the primary one, along with sharing date between PC's. It's even worse when the PC's are not networked. Just about everyone has faced trying to decide which copy of the data file is the correct one. Just about everyone has felt like shooting their PC at times because of these problems..

Unfortunately data security, compliance, and file sharing are very important when it comes to managing a successful mortgage net branch.

Like many business applications - everything is moving to the web.

Why?

Because there is no software to install or update. Everyone gets to the application via the internet using a login and password for access. Security is easier to manage and it is better.

You no longer have to worry about which copy of the file is correct because there is only one copy. Reporting is centralized even with people at different locations. If your on vacation in the south of France (we can dream) you have access with an internet connection.

There are several application that are a hybrid of PC and web based. All promise results but all seem to have a lot of bugs to work out.

We use Mortgage Dashboard. A 100% web based loan origination system that works.

• No Software to load
• Very tight data security
• Access from any internet connection
• Easy reporting
  

The virtual mortgage net branch is here. Contact me for details.

I always appreciate subscribers and welcome comments and questions.

For more mortgage net branch information visit: NetOriginator.com

1099 vs W-2 employee for a mortgage net branch

This is a very important topic that many net branch companies do not want to address.

Q. Can you work for a mortgage net branch company and be paid all or part of your income as a 1099 contractor?

(There are many companies telling prospective branch managers that this is OK - legal - and that everyone at the branch can be paid by 1099.)


A. WRONG!


Many companies are also paying loan officers and managers as 1099 contractors on FHA and VA (HUD) loans.

This is VERY WRONG!

Let review the 2nd issue - Originating HUD (FHA/VA) loan and being paid by 1099.

Read this summary memo from HUD regarding an audit to determine if independent contractors are being use to originate HUD loans.

Summary Link

It is absolutely clear that this is an illegal practice.

Now let's address the more general practice of paying branches and loan officers as 1099 contractors. Many people think that it's OK if you are not originating HUD loans.

The defining source for this is the Internal Revenue Service.

Many state are silent on this issue, and even if they allow it the federal government does not.

The IRS has a form called SS8 it is a 20 question form to determine if an individual qualifies for 1099 contractor status. No loan officer has ever qualified for 1099 independent status.

Here is another link to the IRS that covers this question in detail.
Topic 762 - Independent Contractor vs. Employee
To determine whether a worker is an independent contractor or an employee under common law, you must examine the relationship between the worker and the business. All evidence of control and independence in this relationship should be considered. The facts that provide this evidence fall into three categories – Behavioral Control, Financial Control, and the Type of Relationship itself.

If the company requires you to use specific forms, requires you to use their vendors - appraisers, title companies, investors, etc., if must put your loans through their company, if you work under their license, you are not an independent contractor you are a W-2 employee.

If you are working as a 1099 loan originator you could be subject to large fines from the IRS.

Does the company I represent pay people as 1099 contractors? Absolutely not!

As you consider a net branch company to work with make sure you are picking a company that is in compliance with the rules and regulations we all have to follow.

Even if you are not conducting your business this way if your company is and they get caught you will be left out in the rain with everyone else in that company.

I always appreciate subscribers and welcome comments and questions.

For more mortgage net branch information visit:
NetOriginator.com

Looking for a net branch company?

Are you looking for a net branch company to work with?

There is good news and bad news.

The good news is that the number of companies that you have to choose from has been cut in half in the last 12 months.

The bad news is that the number of companies that you have to choose from has been cut in half in the last 12 months.

Why is this both good and bad news?

It's good news because there were way to many companies offering services that they could not provide.

The bad news is there are still a number of companies offers branch services that they are not equipped to provide.

Most people assume that the "Sub Prime Catastrophe" is the reason so many mortgage companies offering net branch services closed their doors. I don't think this was the primary reason. I think it was because as loan originations slowed down many companies that were hiding their problems with increasing loan production were left with nowhere to hide.

Their operations problems caught up with them.

I talk to people searching for a company to work with every day. The primary reason managers want to switch companies is that they are frustrated because their current company cannot provide the basic services that they promised to provide.

I will use this blog spot to help people understand more about how to find a good net branch company to work with.

Subscribers and comments are always welcome!