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 The Partners Program
The Partners
Program concept is not a new one. In fact, the idea has been around for over
30 years; however, the past year has shown a dramatic increase in the number
of new Mortgage Branch Offices opening. The reason is simple: Partner
Branches allow mortgage lenders to expand their companies with minimal risks
or expenses. At the same time, in true entrepreneurial spirit, the Branch Manager
takes responsibility for branch performance and keeps 100% of the profit after
all costs.
The branch is not without direction from the Main Office. The Main Office establishes
investor relations with correspondent and wholesale lenders, and executes the
appropriate contracts. While the Branch has the ability to choose the investor
for either price or product, the Main Office reserves the right to approve the
investor based on contractual obligations. Once this initial approval process
is complete, the Branch Manager is free to use any correspondent or wholesaler
he chooses.
The Branch Manager sets the price, as well as markups and any permissible
fees. This allows the Branch manager to be as competitive as necessary, and
allows him or her to make concessions when needed without getting Main Office
approval. This makes it possible for the Branch Manager to make an "on
the spot decision".
Most companies provide the back office functions that would otherwise burden
the branch, prohibiting them from doing what they do best: originate and process
loans. The Main Office provides accounting, underwriting, closing, post closing,
and computer support, as well as other administrative functions.
The Branch processes the loan, submits to either DU or LP, then sends the completed
file to the main office for underwriting and closing. Once the branch has reached
"certification" approval, underwriting decisions made through DU/LP
can be committed through the Branch level. Many companies provide automated
underwriting systems offering quick decisions. The concept allows for the branch
manager to earn 100% of the profits of the branch. Once the expenses are paid
the remaining income goes to the manager.
The potential Branch Manager must carefully consider whether this concept is
right for them before making a decision. As in all great opportunities, there
is some risk involved. They are, after all, opening a company with all the inherent
dangers. However, they are not going into it alone. The support that the Main
Office provides is invaluable...it is in their best interest to see that the
Branch succeeds and continues to grow.
In a nutshell, the Branch Manager's advantages are as follows:
- The Branch operates as
a Mortgage Banker
- Less disclosure and RESPA
concerns
- Access to extensive warehouse
lines
- FHA and VA approvals
- Agency approvals
- Elimination of net worth
requirements
- Correspondent and/or
wholesale pricing
- Automated underwriting
systems
- Accounting and payroll
services
- Group benefits
- Computer systems and
support
- Errors and omissions
insurance, fidelity bond coverage
- Legal and compliance
- Marketing support
As the mortgage business
becomes more complicated and the waters get muddier, the benefits of our Partners
Program become clearer every day...The time is now! |
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