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paul57763
48 Posts |
 Posted - 02/13/2008 : 09:52:00 AM
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I'm going to basically ask for something specific.
I need to know if there's a net branch company (or credit union, or bank) that:
1. Has licensing/hud exemption for all 50 states
2. Has reasonable fees. I am not looking to pay basis points. A flat fee per loan or a monthly fee is what I'm looking for.
3. Has a decently quick set-up time
4. Will not push me to use their lending line by "penalizing" me for brokering. I understand that there may be a higher fee for allowing us to broker, but something reasonable.
5. Has a good reputation, solid backing, good future...
We were with a net branch company and we were doing about 15 to 25 loans on average/month. After their demise we set up with a new company and things are not quite working out too well.
If you know of some federally chartered bank or anything that fits our description, please help!!!
PS: If you're a recruiter or a sales manager that is involved with a company that does not 100% match the 5 criteria laid out, I'm really not interested.
Thanks!
Paul N. |
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paul57763
48 Posts |
Posted - 02/13/2008 : 10:54:08 AM
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| bump |
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Tsnyder
7506 Posts |
Posted - 02/13/2008 : 11:38:08 AM
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I don't believe such an animal exists...
Tsnyder |
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richardb
98 Posts |
Posted - 02/13/2008 : 11:52:10 AM
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| Emery Federal Credit Union, all 50 states and good lenders. Pay two days after funding |
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paul57763
48 Posts |
Posted - 02/13/2008 : 12:25:15 PM
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| Do you have the phone number for Emery FCU? I'm talking to First National Mortgage Sources right now...anyone have any news on them?? |
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richardb
98 Posts |
Posted - 02/13/2008 : 12:27:10 PM
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| 800-880-3020, it is called the corona service center, they will set you up |
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paul57763
48 Posts |
Posted - 02/13/2008 : 12:30:30 PM
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I've heard that its wise to stay away from these 3rd party recruiters...that you somehow won't get as advantageous a deal as opposed to going to the source...
Do you have a website address for Emery FCU?
Thanks! |
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dkendall1979
6911 Posts |
Posted - 02/13/2008 : 12:32:24 PM
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My friend is a recruiter for a branching company licensed in all 50 states. They are excellent about paying out on time, but don't expect support. They will leave you alone, you fund the loans, send them compliance plus the check and 72 hours later you have your check minus $995. the fee goes down with volume as some branches doing your volume are paying $595/file. Full Eagle HUD in 47 states. I strongly advise you to broker all your deals, it's just much easier that way.
Email me and I'll send you his information. |
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richardb
98 Posts |
Posted - 02/13/2008 : 12:32:56 PM
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| i have had no problems with them, been doing busy with them for a while. Give them a call and check them out, they were formally know as Western Thrift and Loan. |
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paul57763
48 Posts |
Posted - 02/13/2008 : 1:33:56 PM
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| Ok cool..thanks. now is there a website for Emery? where are they based in? do you know how long it takes to get set up with them? what their fees are? i left a vm but no one has called me back yet... |
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Tsnyder
7506 Posts |
Posted - 02/13/2008 : 1:43:08 PM
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quote:
Originally posted by richardb
i have had no problems with them, been doing busy with them for a while. Give them a call and check them out, they were formally know as Western Thrift and Loan.
Maybe I'm not following this right... are you saying
that Western Thrift & Loan is now a federal credit union?
Tsnyder |
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1003s.com
2693 Posts |
Posted - 02/13/2008 : 1:51:16 PM
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quote:
Originally posted by paul57763
I've heard that its wise to stay away from these 3rd party recruiters...that you somehow won't get as advantageous a deal as opposed to going to the source...
That is like saying all borrowers should go to banks, and not deal with brokers.
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paul57763
48 Posts |
Posted - 02/13/2008 : 2:09:06 PM
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"That is like saying all borrowers should go to banks, and not deal with brokers."
Not necessarily...usually you can get a better deal from a broker than you can from a bank...assuming that broker is being honest and straightforward, and not trying to get rich off you.
I'm not trying to say its wrong to deny anyone a livelyhood, I'm just going off of what I read in some previous threads. At any rate, if you are a recruiter, do you know of any branch company that exactly meets my criteria? I'm talking to a few companies now, but of them all, none meet my criteria and a company called Interactive Financial seems to be the front runner at this point. |
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1003s.com
2693 Posts |
Posted - 02/13/2008 : 2:38:28 PM
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quote:
Originally posted by paul57763
"That is like saying all borrowers should go to banks, and not deal with brokers."
Not necessarily...usually you can get a better deal from a broker than you can from a bank...assuming that broker is being honest and straightforward, and not trying to get rich off you.
I'm not trying to say its wrong to deny anyone a livelyhood, I'm just going off of what I read in some previous threads. At any rate, if you are a recruiter, do you know of any branch company that exactly meets my criteria? I'm talking to a few companies now, but of them all, none meet my criteria and a company called Interactive Financial seems to be the front runner at this point.
Paul,
My opportunity #4 in the announcement section, charges a higher fee to LO's
and branch managers that do not come to them from me. I save them marketing costs,
and staffing costs. When someone calls them, from me, they already been screened.
I don't think there are any companies that meet your criteria,
your criteria item #5 would eliminate, some that might come close otherwise.
The whole FED Charter branch thing, is still kind of new, I suspect in a year
or 2 from now, there will be companies out there that might meet all your criteria. |
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richardb
98 Posts |
Posted - 02/13/2008 : 2:41:06 PM
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| There are companies like that. Emery Federal Credit Union is federally chartered |
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paul57763
48 Posts |
Posted - 02/14/2008 : 08:35:08 AM
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RichardB, since I can't get a call back from "Giani" at Corona Services, can you at least provide a URL for Emery? I can't seem to find them on any Google searches...
Bob...
I actually found a company that has what I've asked, its just that there doesn't seem to be a good amount of organization and cohesion within that organization to really make me feel comfortable.
I also spoke with someone at First National Mortgage Sources, who pretty much meets all my criteria except #2, BUT, when you weigh out their fees over the amount of closings, it really puts you in a situation where you're basically signing over half your pay check to them.... |
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MarkIFC
361 Posts |
Posted - 02/14/2008 : 09:02:19 AM
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| The problem I have found with the Chartered or CU based Net Branch opportunities is that you must be an employee of that company and you can only market their loan products at their rate (which seem to always be higher). |
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richardb
98 Posts |
Posted - 02/14/2008 : 09:04:08 AM
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| not true |
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Tsnyder
7506 Posts |
Posted - 02/14/2008 : 09:07:07 AM
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quote:
Originally posted by paul57763
RichardB, since I can't get a call back from "Giani" at Corona Services, can you at least provide a URL for Emery? I can't seem to find them on any Google searches...
I found a google entry for Emery Federal Credit Union
in Cincinnati but I have no idea if it's that credit union
we're talking about.
Tsnyder |
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richardb
98 Posts |
Posted - 02/14/2008 : 09:09:11 AM
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michelle@coronaservicecenter.com
If you cannot get ahold of them, give this lady an email and she will get you going, this is the contact for Emery.
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paul57763
48 Posts |
Posted - 02/14/2008 : 09:27:05 AM
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| Okay I just emailed Michelle...let me ask you this though...if its this hard to find out about getting set up, how hard will it be getting support if we have questions/problems, etc...??? How good is their support system? |
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mhillman
5 Posts |
Posted - 02/14/2008 : 10:27:21 AM
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quote:
Originally posted by paul57763
I'm going to basically ask for something specific.
I need to know if there's a net branch company (or credit union, or bank) that:
1. Has licensing/hud exemption for all 50 states
2. Has reasonable fees. I am not looking to pay basis points. A flat fee per loan or a monthly fee is what I'm looking for.
3. Has a decently quick set-up time
4. Will not push me to use their lending line by "penalizing" me for brokering. I understand that there may be a higher fee for allowing us to broker, but something reasonable.
5. Has a good reputation, solid backing, good future...
We were with a net branch company and we were doing about 15 to 25 loans on average/month. After their demise we set up with a new company and things are not quite working out too well.
If you know of some federally chartered bank or anything that fits our description, please help!!!
PS: If you're a recruiter or a sales manager that is involved with a company that does not 100% match the 5 criteria laid out, I'm really not interested.
Thanks!
Paul N.
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paul57763
48 Posts |
Posted - 02/14/2008 : 10:31:25 AM
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| you didn't add anything...you just quoted my original post |
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mhillman
5 Posts |
Posted - 02/14/2008 : 10:35:42 AM
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Paul,
No better branch program than Flagstar's.
MH |
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gopackers
393 Posts |
Posted - 02/14/2008 : 10:38:27 AM
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there is a way to get all 5 but you and your whole staff would have to be W2'd which means you can't get 100% commission because of the employers FICA, state and federal unemployment which runs about 12%
$690 off the top and another $300 if FHA or Reverse mortgage which is required to be processed in house but can still be brokered out without an additional fee. |
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FLProcessor
189 Posts |
Posted - 02/14/2008 : 10:44:08 AM
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I had read on MortgageMag some time ago, that Western pads ratesheets. Richard, have you found this to be true? Or, if they receive offsheet incentives anywhere, are these passed to the broker?
I read the fees were $500 or 10% (whichever is greater), but I guess my question is whether that is in *addition to* the extra SRP's or potential ratesheet padding? |
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paul57763
48 Posts |
Posted - 02/14/2008 : 11:07:47 AM
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| How does Flagstar's work? |
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mhillman
5 Posts |
Posted - 02/14/2008 : 11:21:57 AM
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1) ALL expenses associated with the branch are posted to the branch's Cost Center.
2) Management fee for Flagstar loan is $550, $800 for loans brokered to a short list of other investors. Maximum Underwriting Fee of $500 is earned by the Branch (therefore acts as an offset to the Management Fee).
3) ALL employees are W-2 Exempt Employees and earn a draw against commission bi-weekly equivalent to 2X minimum wage. The draw accrues until offset by commissions earned. Commission split is at the discretion of the Branch Mgr.
4) As a Federal Savings Bank, 50 state licensing exemption.
5) NYSE-listed, top 20 residential lender, top five FHA lender, solid rep, strong technology.
www.internetbranch.net
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paul57763
48 Posts |
Posted - 02/14/2008 : 11:27:52 AM
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So basically you keep whatever is left over of the commission, correct?
Also, what type of location do they want you to have...we're basically a small call center in the sense that ALL our business is done online and over the phone...we do loans in every state except the state we're in...
The fees seem a little more than the smaller, no name places, and the fact that all of the income is W2 kinda hurts, but the name recognition may be worth it... |
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gopackers
393 Posts |
Posted - 02/14/2008 : 11:38:41 AM
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| You have to be W2'd if you want to originate FHA loans. |
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paul57763
48 Posts |
Posted - 02/14/2008 : 11:48:38 AM
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| We don't do FHA anyways...besides, what I meant by that is some companies are saying that you can W2 10% of the income and 1099 the rest. We have not tried that yet but it seems like it would save a ton of money... |
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mhillman
5 Posts |
Posted - 02/14/2008 : 12:11:20 PM
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quote:
Originally posted by paul57763
We don't do FHA anyways...besides, what I meant by that is some companies are saying that you can W2 10% of the income and 1099 the rest. We have not tried that yet but it seems like it would save a ton of money...
The IRS would love to know who that Company is! |
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paul57763
48 Posts |
Posted - 02/14/2008 : 12:22:11 PM
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| there's like 4 that told me that! |
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1003s.com
2693 Posts |
Posted - 02/14/2008 : 2:03:56 PM
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quote:
Originally posted by paul57763
RichardB, since I can't get a call back from "Giani" at Corona Services, can you at least provide a URL for Emery? I can't seem to find them on any Google searches...
Bob...
I actually found a company that has what I've asked, its just that there doesn't seem to be a good amount of organization and cohesion within that organization to really make me feel comfortable.
I also spoke with someone at First National Mortgage Sources, who pretty much meets all my criteria except #2, BUT, when you weigh out their fees over the amount of closings, it really puts you in a situation where you're basically signing over half your pay check to them....
Paul,
parts of #5 on your list, are highly subjective, so if you feel you have found ones
that satify all you mentioned there, good for you. |
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paul57763
48 Posts |
Posted - 02/15/2008 : 09:28:04 AM
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Thanks Bob, I would think that in regards to #5, that is something that they all should strive for...
Anyone else have anything to add to this?
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FLProcessor
189 Posts |
Posted - 02/15/2008 : 09:40:49 AM
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Paul, would First Metropolitan be a good fit for you? I can't say I know whether they meet all of your requirements, but a shop where I worked about 8+ years past, had used them, they were quite good and I feel they have a great reputation *relatively* speaking (while I think you can find someone to say something bad about any NB, it's a matter of finding the ones who are relatively superior). Their fees were extremely low, I felt, at the time. I believe they were 10% without a minimum, but I could be wrong.
I'm not sure if I agree with Bob on it being subjective. I mean, sure, at some point everything is subjective -- but there are certainly a group of 5 or so NB companies that have much better / longer standing reputations than others. Of course I don't know as much about NB as Bob, not even close. |
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paul57763
48 Posts |
Posted - 02/18/2008 : 09:14:39 AM
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| I dont think Metropolitan would work...I'm strongly in need of something offering me 50 states...thanks though... |
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FLProcessor
189 Posts |
Posted - 02/18/2008 : 09:35:32 AM
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| I think you may have misread something about First Met. They are 50-state licensed and by-far-and-away one of the largest branching opperations. Or is it that they require you to do anciliary licensing, or some issue like that? |
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paul57763
48 Posts |
Posted - 02/18/2008 : 09:37:32 AM
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| Do you have their website or contact information? Thanks! |
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FLProcessor
189 Posts |
Posted - 02/18/2008 : 09:47:36 AM
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I don't have any contact information or know anyone there (not for many years), but I did a google search for them and received the website: www (dot) 1st Met (dot) com.
I'm leaving the link broken up because I don't know if I'm violating any forum terms by including a link in a post. |
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paul57763
48 Posts |
Posted - 02/18/2008 : 10:10:15 AM
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| Thanks for the info...I just spoke with someone there...their fee structure is really unfavorable for a company which does high volume loan amounts...but thanks for the recommendation! |
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FLProcessor
189 Posts |
Posted - 02/18/2008 : 10:17:42 AM
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Hi Paul,
Will you share some basic info about their fee structure? I thought it was 10% when we were using them, is that not accurate? In my experience, 10% without a minimum is the lowest of all major branches (which I think is the reason we used them at the time). |
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paul57763
48 Posts |
Posted - 02/18/2008 : 10:26:29 AM
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First of all, no netbranching company should charge basis points. Especially when they have tons of competition that is not charging it.
Its ridiculous in my opinion. I honestly don't know how places like this stay in business, when there are other companies out there that don't touch your revenue.
Branch companies (because they're really dime-a-dozen) should either charge a flat per file fee or a monthly fee up to a certain amount of originations.
With the company you recommended, if your avg loan amount is below $160k, they want 10% plus $150 per file.
However, if your loan amount is above $160k they are asking for 25 basis points plus $99/file. So basically, if you're a branch that does about 25 closings/month for about $7.5million, you're going to fork over to them something along the tune of $22k...which is infinitely beyond ridiculous in my opinion. Actually to be honest, of the 25 companies I've spoken to, only one other one was worse...and they at least were federally exempt for licensing.
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1stintegritymort
1192 Posts |
Posted - 02/18/2008 : 10:32:42 AM
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| eagle nationwide may be the best for your situation...www.enmcdirect.com |
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FLProcessor
189 Posts |
Posted - 02/18/2008 : 10:36:08 AM
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25bp is higher than what they charged in the past, I believe. I agree, 25bp would not work for us. However, with that said, you should look at some of the old NB archives with people like "The Godfather" over on MortgageMag.
You'll soon realize that NB's are most definitely not "a dime a dozen", not by any means. In fact, I think that when it all fleshed out, there was *not one* reliable NB that any of them could find, that (a) did not screw people, and (b) offer a low rate. Either they were a reliable company that charged more than brokers were willing to pay, -or- (b) they were a unreliable company that had a flat-rate model, etc.
If there were a lot of NB offering such an ideal situation, I think Bob (forum member 1003s) probably would have chimed in, considering all of the research he has done.
Don't get me wrong, I'm not standing up for any NB specifically, but simply passing on the results of about 5 hours of reading, if you were go look through the 2-year thread history on the topic, by the people who are sort of the 'experts' in NB evaluation / have lived/worked with several different companies. |
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FLProcessor
189 Posts |
Posted - 02/18/2008 : 10:47:59 AM
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| 1st - Thanks for the Eagle link, I had never heard of them. They do seem to have a lot of branches. I notice they are 100% W2, do you know more about their commission structure? |
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1stintegritymort
1192 Posts |
Posted - 02/18/2008 : 10:52:25 AM
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| i talked to them around the time i was deciding if i should join them or go on my own. this was around when PMF filed BK. they told me since there was an office close by i was not eligible unless i moved office locations. that wasnt gonna happen since i am locked in a lease. from what i understand they charge a $495 per file fee if the loan is brokered and if you go through their banking division there is no fee. i do not know how their service is or anything else since i did not get that far with them. |
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FLProcessor
189 Posts |
Posted - 02/18/2008 : 11:00:33 AM
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On one hand, you have to give it to them for protecting an existing relationship. A lot of NB's would not do that.
Thanks again for the info!
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paul57763
48 Posts |
Posted - 02/18/2008 : 11:25:43 AM
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| do you know if eagle charges only the flat fee or if they charge basis points on top of that? |
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1stintegritymort
1192 Posts |
Posted - 02/18/2008 : 11:32:38 AM
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| honestly i dont remember... they could charge the basis points also. if they do it might be 35 bps. usually though most of the banking divisions you will deal with pad their rates by about that much. it all comes out the same. the net branch companies will always find a way to get you one way or another. that is the main reason i decided to go on my own. if you do not go with a Fed Charter, in order for you to do out of state, Corporate would require you to get out of state licenses anyway. if they say you dont have to you better believe you are getting charged to use their license. its a no win situation i feel like. that is why i decided to go on my own since i would have to get the licenses anyway. just made more sense. when i was with Premier they told me i was not able to get most of the states i wanted. same thing with other net branch companies. they want you to use their license so they can charge you a fee for out of state. the problem i had is that you cant legally market out of state without the license since you need to put your branch's license number on all direct mail. |
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1003s.com
2693 Posts |
Posted - 02/18/2008 : 2:54:46 PM
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quote:
Originally posted by paul57763
First of all, no netbranching company should charge basis points. Especially when they have tons of competition that is not charging it.
Paul,
your post above implies companies should just do what other
companies are doing. 2 Texas based companies have been charging basis points
for many years, and have done very well. I see no reason for them to stop using
their basis point program. It must be working for them. Lowering your fees to compete,
is not always a smart thing to do, my opportunity #4 is over priced for branches,
so it is rare for me to send them a branch, however they have done a great job with
LO's that I have sent them that are less concerned about fees. As far as branches
are concerned, they understand they are bringing in less branches at their fee level,
and they are okay with that.
As I said earlier, there is no company that meets your criteria,
to add some clarity to that statement, a company strong on compliance,
and licensed in all 50 states, would not want a branch,
doing loans in all 50 states.
There is a limited number of FED charters,
and none of them meet your criteria. |
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