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dawg846
33 Posts |
 Posted - 03/26/2008 : 5:34:03 PM
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Ok... so i just joined a company and am getting set up and i am starting to price out my deals with them and it is obvious they pad their rates.. i am talking .75 difference from what i was selling and was still selling correspondent. However, i am gettin a better split now so it comes out in the wash but I was wondering if there are companies out there that dont pad the rates and dont take .75 ysp and still offer 100% and a flat fee.
Not looking to change but am looking to get educated!!
Thank you in advance!!
Tim
Ascent Home Loans |
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EMScommercial
4444 Posts |
Posted - 03/27/2008 : 4:15:23 PM
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Padding rates is a legit business practice.... just as long as they don't jack them up so high that you lose the business to the next guy who doesn't jack up AS high....
Good luck Tim.... if you need help with commercial loans.... let me know.... |
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ZoolanderMSM
164 Posts |
Posted - 03/27/2008 : 4:31:52 PM
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Tim,
If you find a net branch that has a true 100% split and only charges a couple hundred bucks per file, they probably won't be in business long term. That may be fit your business plan, I don't know. Remember, there is real overhead in every brokerage, and companies that sell themselves too cheaply just won't stay. If you're using a correspondent line, your risk increases even more. What if MI companies (for instance) change their policy for what they will insure overnight? Your company could have files sitting on their correspondent line that they cannot sell. This is what happened to all of the sub prime lenders last summer.
You need to go get your broker license and just work for yourself. Find out what your state requires to do this and go for it. |
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CoolMtgGuy
1608 Posts |
Posted - 03/27/2008 : 4:43:56 PM
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quote:
Originally posted by ZoolanderMSM
Tim,
If you find a net branch that has a true 100% split and only charges a couple hundred bucks per file, they probably won't be in business long term. That may be fit your business plan, I don't know. Remember, there is real overhead in every brokerage, and companies that sell themselves too cheaply just won't stay. If you're using a correspondent line, your risk increases even more. What if MI companies (for instance) change their policy for what they will insure overnight? Your company could have files sitting on their correspondent line that they cannot sell. This is what happened to all of the sub prime lenders last summer.
You need to go get your broker license and just work for yourself. Find out what your state requires to do this and go for it.
This is very sound advice and I concur completely. If you decide to join a particular brokerage, it should be a mutually rewarding relationship based on mutual respect and support for mutual success. Unfortunately, too many people really could not care less about the brokerage's side of such a relationship ... it is all about them. They all want 100%, no margins on rates and miniscule per/file fee. These people need to go out on their own. Be the shark ... not the pilot fish! |
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