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
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