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!