Small shops with low volume, how do

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CoolMtgGuy

4109 Posts

Posted - 05/18/2008 : 06:06:13 AM

you manage your lender partner list?

With some wholesale lenders exiting the business, and others tightening their production requirements in order to maintain those relationships, I find that it is taking more time and effort just to keep lending relationships intact while adding to replace lost ones. Seems like a painful cycle of doing broker packages, which often requires credit pulls for principals, etc.

I'd appreciate feedback on how small broker shops handle this challenge. Thanks.

HMDApproved

694 Posts

Posted - 05/18/2008 : 07:13:31 AM

They don't. That's why most are either cutting back or closing all together.
I don't mean to sound harsh but the truth is you either have to bank your loans or else.

You need that outlet and you can't depend on brokering your business in todays market, not if you want to earn a living anyway>>>

CoolMtgGuy

4109 Posts

Posted - 05/18/2008 : 08:58:59 AM

quote:
Originally posted by HMDApproved

They don't. That's why most are either cutting back or closing all together.
I don't mean to sound harsh but the truth is you either have to bank your loans or else.

You need that outlet and you can't depend on brokering your business in todays market, not if you want to earn a living anyway>>>

I don't consider your comment harsh and I do not disagree either. My business sense is telling me that the broker model will not be viable and sustainable so I'm trying to figure out what my options are at this point.

rad

1404 Posts

Posted - 05/18/2008 : 09:06:41 AM

When the negative music is as loud as it has been on BO, it's better to log off for a while and the productive solutions will come from yourself. Really, how many good lenders do you need?

aspiring1

1340 Posts

Posted - 05/18/2008 : 10:05:34 AM

quote:
Originally posted by rad

When the negative music is as loud as it has been on BO, it's better to log off for a while and the productive solutions will come from yourself. Really, how many good lenders do you need?

Amen.

toddblue

2538 Posts

Posted - 05/18/2008 : 10:59:54 AM

I'm in a very small shop and facing the same dilemma. A year ago, I had over a dozen lenders available and could handle any loan thrown my way. Today I'm down to a handful.

I have shifted my business to the 2 remaining lenders I have that I think have the best chance of sticking around (TBW and Flagstar). They can handle the bulk of my needs and we are working hard to maintain what has always been a strong relationship with them.

My 2nd tier lenders (Indy, Citi, 1st Horizon and Suntrust) have done little to earn my business as of late. We maintain communications with them and run scenarios, buttheir just not coming throgh for us. I also have concerns about sending loans to anyone on the Implode-O-Meter ailing list.

Long story short, we have picked the 2 lenders that we are most comfortable with and are holding on tight.

1stintegritymort

1298 Posts

Posted - 05/18/2008 : 11:15:43 AM

with todays market, you dont need to be set up with that many lenders. either they are fannie, fha or manual UW. as long as you can do those, youre fine. you dont need 20 lenders to send your deals to. pricing is all pretty close. turntimes are not. i am set up with 10 lenders but send the majority to just one. i use the others when my first choice won't do the loan. i havent had any issues with lenders terminating the relationship unless they exited wholesale completely. national city and BofA to name a couple but then again i did not use them much either.

slants

4309 Posts

Posted - 05/18/2008 : 12:13:39 PM

Do what the majority of small brokers have already done: become affiliated with a net branch with a small per file fee and access to all 200 remaining lenders and FHA. Retain your broker license for RE closings.

HMDApproved

694 Posts

Posted - 05/18/2008 : 2:00:42 PM

We offer net Branch opportunities. We pay 100% on all fee's collected and ysp. We charge a flat fee per file and we are Full Eagle FHA/VA manual U/W. Will do down to a 530 fico and up to a 55% dti (FHA)

Contact me with any questions.

Jimmy..732-924-4741

slants

4309 Posts

Posted - 05/18/2008 : 2:02:17 PM

quote:
Originally posted by HMDApproved

We offer net Branch opportunities. We pay 100% on all fee's collected and ysp. We charge a flat fee per file and we are Full Eagle FHA/VA manual U/W. Will do down to a 530 fico and up to a 55% dti (FHA)

Contact me with any questions.

Jimmy..732-924-4741

Jimmy, which net branch are you affiliated with?

toddblue

2538 Posts

Posted - 05/18/2008 : 2:04:29 PM

quote:
Originally posted by slants

Get affiliated with a net branch with a small per file fee and access to all 200 remaining lenders and FHA. Retain your broker license for RE closings.

In NM, RE licenses and Brokers Licenses are 2 separate licenses regulated by 2 different regulatory bodies. In NM it is illegal for a licensed real estate agent to receive payment for a mortgage loan origination/brokering.

We have looked at the net branch opportunties and they have nothing to offer that we already don't have with our limited number of lenders. Between TBW and Flagstar you can do Fannie, Freddie, FHA, and USDA (which pretty much covers the scope of lending in today's market).

Were going to sit tight where we are and try to ride out the storm from here. A net branch is our final fallback position.

HMDApproved

694 Posts

Posted - 05/18/2008 : 2:08:31 PM

Fidelity Borrowing Mortgage Bankers in Garden City, NY and Red Bank, NJ

slants

4309 Posts

Posted - 05/18/2008 : 2:09:05 PM

Based on his previous posts, pretty sure the OP is not FHA approved and is not likely to get access without a netbranch. It is the best solution for his situation as many others have concluded upon in depth research.

toddblue

2538 Posts

Posted - 05/18/2008 : 2:19:05 PM

For us, FHA isn't where it's at. It's all about USDA RD 100% financing.

No MI, Up to 102% LTV (after rolling in funding fees), No questions about credit 620 or above, can do under 620 with minimal risk layering.

If you're a small shop in a rural area you need this product. USDA is easy to get on with and easy to get through UW. We always look to USDA first.

CoolMtgGuy

4109 Posts

Posted - 05/18/2008 : 6:08:00 PM

quote:
Originally posted by slants

Based on his previous posts, pretty sure the OP is not FHA approved and is not likely to get access without a netbranch. It is the best solution for his situation as many others have concluded upon in depth research.

slants, you are correct ... and have a good memory.

I really never needed FHA in CT but I'm doing some business development in Florida and I know that it is a must have for that market. This is an education exercise for me so I truly appreciate every bit of feedback. I am also getting tired of doing broker packages.

CoolMtgGuy

4109 Posts

Posted - 05/18/2008 : 6:15:28 PM

quote:
Originally posted by slants

Do what the majority of small brokers have already done: become affiliated with a net branch with a small per file fee and access to all 200 remaining lenders and FHA. Retain your broker license for RE closings.

I have seperate licenses for re and mortgage in both CT and FL. For this reason, the threads about doing FHA while keeping a re licenses is of interest to me. Also, I have started investigating the net branch route. I stopped being an active re agent years ago but I have done pretty well collecting referral fees. That is my only reason for having the re licenses.

peter

4937 Posts

Posted - 05/18/2008 : 9:33:27 PM

I am also in a substantially downsized broker shop, and I am trying to ride out
the storm by concentrating on just a few lenders, i.e. Wells and several other
fast turn-around mortgage bankers. Although we are still approved with so many
lenders and none has cut us out yet because of lack of volume, we do not waste our
time with lenders who are not competitive in customer service, rates and programs.
After funding some files with lenders, we know who are real and who are not. Yes,
Wells and HSBC are still my favorite lenders and they did fund my few files with
fair stips.

Peter

CoolMtgGuy

4109 Posts

Posted - 05/19/2008 : 04:32:13 AM

Thanks for the feedback.

I have a mortgage jv with a real estate company and I'm experiencing difficulties as a result of a former LO (fired her last month) messed up an environment and relationship that took me years to establish. Now agents are complaining that my jv may not be the best solution for the office. The arrangement is now being reviewed and potential competitors are telling agents that they have "hundreds of lenders and will get any deal funded". I know that its bs but I have to address it. Most agents don't have a clue and is ill-equipped to make a fact-baed decision so I am exploring all options, one of them being abandonment of the jv and walking away.

My 2nd situation is another company that I have owned 100% for over six years and it is licensed in CT & FL. I moved my primary residence to FL from CT late last year and now I am trying to figure out if to remain a small independent broker or convert to some other business model while keeping costs to a minimum.

One option that I am considering is closing out both businesses and getting out of the industry completely. As I said in previous posts, I am using input, feedback, recommendations, criticisms, etc from many sources as I try to chart a business course. I hate losing my independence but I don't want to pay too huge a price for it either. Hopefully this adds some context to my original post. Thanks to all of you for your contributions to this thread.

quote:
Originally posted by peter

I am also in a substantially downsized broker shop, and I am trying to ride out
the storm by concentrating on just a few lenders, i.e. Wells and several other
fast turn-around mortgage bankers. Although we are still approved with so many
lenders and none has cut us out yet because of lack of volume, we do not waste our
time with lenders who are not competitive in customer service, rates and programs.
After funding some files with lenders, we know who are real and who are not. Yes,
Wells and HSBC are still my favorite lenders and they did fund my few files with
fair stips.

Peter

Janlynn

91 Posts

Posted - 05/19/2008 : 06:28:35 AM

I am in a similar situation as you Cool and todd. I am a very small broker- me, my husband and 1 other part time LO who is leaving the business. We are only licensed in RI and CT right now.

We have not had problems with our lenders (unless they have closed/imploded), because I had very strong relationships with my AE's going back about 10 yrs, and I also tended to send my files to the same handful of lenders that gave me the best service with reasonable rates, even though I was signed up with many other lenders. If you are loyal to them, they usually stay loyal to you (or so I have found).

I do not have any answers, but have many of the same questions as you do. We have been looking into the net branch or remote LO opportunites out there because I think that now we really need FHA and a few more states to keep afloat for the next couple of years until the market starts to rebound. I think it would also be great to have the option of brokering or banking the loans as well. But, all the ones I have found that seem solid have either minimum volume requirements, or a monthly fee in addition to a per file fee. The monthly fee is more than my current monthly expenses, so we would have to do so much more business to take the hit of the per file and monthly fee, that it might not really put us in a better position,as we are so small that we are never going to be a volume producer.
It's hard to come to these realization that the small broker model is not viable right now, after working hard to build your company just to see the business kind of ripped out from under you. I know how you feel - hate to lose the independence. The other thing is, what if you give it all up - your licenses, etc, then the company you decide to go with implodes, or discontinues their net branch/affiliate LO program, etc. And, if you get out completely, and then when the industry gets better, you no longer have immediate experience in the mortgage industry and may not be able to get another license, especially with the stricter new requirements for both LO and compnay licenses now.
So many questions and so much uncertainty - it's really hard to decide what the best move is.

Jimmy- what states can you do with your net branch?

1003s.com

3434 Posts

Posted - 05/19/2008 : 08:46:31 AM

quote:
Originally posted by Janlynn

I am in a similar situation as you Cool and todd. I am a very small broker- me, my husband and 1 other part time LO who is leaving the business. We are only licensed in RI and CT right now.

We have not had problems with our lenders (unless they have closed/imploded), because I had very strong relationships with my AE's going back about 10 yrs, and I also tended to send my files to the same handful of lenders that gave me the best service with reasonable rates, even though I was signed up with many other lenders. If you are loyal to them, they usually stay loyal to you (or so I have found).

I do not have any answers, but have many of the same questions as you do. We have been looking into the net branch or remote LO opportunites out there because I think that now we really need FHA and a few more states to keep afloat for the next couple of years until the market starts to rebound. I think it would also be great to have the option of brokering or banking the loans as well. But, all the ones I have found that seem solid have either minimum volume requirements, or a monthly fee in addition to a per file fee. The monthly fee is more than my current monthly expenses, so we would have to do so much more business to take the hit of the per file and monthly fee, that it might not really put us in a better position,as we are so small that we are never going to be a volume producer.
It's hard to come to these realization that the small broker model is not viable right now, after working hard to build your company just to see the business kind of ripped out from under you. I know how you feel - hate to lose the independence. The other thing is, what if you give it all up - your licenses, etc, then the company you decide to go with implodes, or discontinues their net branch/affiliate LO program, etc. And, if you get out completely, and then when the industry gets better, you no longer have immediate experience in the mortgage industry and may not be able to get another license, especially with the stricter new requirements for both LO and compnay licenses now.
So many questions and so much uncertainty - it's really hard to decide what the best move is.

Jimmy- what states can you do with your net branch?

Janet,

I recruit for a company that does biz in CT & RI, $499- per file, branches

pay for a MIN of one loan closed per month. Plus $7 per week per employee for

payroll. Or Monthly at $1644 for the 1st 15 files. A branch can switch back and forth

with 30 days notice. They have everything, FHA,VA, Reverse, RDA. Broker all

or banker some, no pressure to banker anything.

slants

4309 Posts

Posted - 05/19/2008 : 09:14:45 AM

See this thread for more options:

http://www.brokeroutpost.com/loans/brokers/forum/topic.asp?TOPIC_ID=215630

nw@8brook

162 Posts

Posted - 05/19/2008 : 10:09:48 AM

same boat here, small shop with another LO. It boggles my mind why fha has such stringent requirements to sign on now that all LO's in MA are licensed and I believe a nationwide licensing system should be on board soon. I believe the key to survive is low overhead which I have been doing even during the boom times. I look at it this way: I hope I will be one of the last ones standing when the dust clears. Going forward, writing mortgages may not be as profitable as they used to be, as well as running a small shop. I've been in the biz for a long time and back then when I started the income of LOs are equivalent of a mid level office manager, ie, just another sales position. I think you have to look at it this way and decide if this is the income you can be comfortable with.

quote:
Originally posted by Janlynn

I am in a similar situation as you Cool and todd. I am a very small broker- me, my husband and 1 other part time LO who is leaving the business. We are only licensed in RI and CT right now.

We have not had problems with our lenders (unless they have closed/imploded), because I had very strong relationships with my AE's going back about 10 yrs, and I also tended to send my files to the same handful of lenders that gave me the best service with reasonable rates, even though I was signed up with many other lenders. If you are loyal to them, they usually stay loyal to you (or so I have found).

I do not have any answers, but have many of the same questions as you do. We have been looking into the net branch or remote LO opportunites out there because I think that now we really need FHA and a few more states to keep afloat for the next couple of years until the market starts to rebound. I think it would also be great to have the option of brokering or banking the loans as well. But, all the ones I have found that seem solid have either minimum volume requirements, or a monthly fee in addition to a per file fee. The monthly fee is more than my current monthly expenses, so we would have to do so much more business to take the hit of the per file and monthly fee, that it might not really put us in a better position,as we are so small that we are never going to be a volume producer.
It's hard to come to these realization that the small broker model is not viable right now, after working hard to build your company just to see the business kind of ripped out from under you. I know how you feel - hate to lose the independence. The other thing is, what if you give it all up - your licenses, etc, then the company you decide to go with implodes, or discontinues their net branch/affiliate LO program, etc. And, if you get out completely, and then when the industry gets better, you no longer have immediate experience in the mortgage industry and may not be able to get another license, especially with the stricter new requirements for both LO and compnay licenses now.
So many questions and so much uncertainty - it's really hard to decide what the best move is.

Jimmy- what states can you do with your net branch?

Janlynn

91 Posts

Posted - 05/19/2008 : 10:32:58 AM

Nelson,
You are right. I remember when being in the mortgage business involved making a decent living if you were willing to work hard, but not the crazy money that was being made during the "boom", and I was fine with it back then. I even have to say that I enjoyed the actual business more before the boom. Sure, it was nice to make more money for a few years, but when you saw all these new people come into the business (not that some of them aren't good LOs now - but many just came for the easy money),and the craziness that was going on, it became something else.

We always wanted to be a small company, where the customer got the best service, and we could control what our LOs were doing, and keep our overhead low. But now, being small is really hard in many ways. Hope you can hang in there. If we can get through the bottom, it will still be a good business to be in.

Janlynn

91 Posts

Posted - 05/19/2008 : 10:44:39 AM

Bob,
Thanks - I just emailed you

ehm3

979 Posts

Posted - 05/19/2008 : 11:33:06 AM

quote:
Originally posted by toddblue

For us, FHA isn't where it's at. It's all about USDA RD 100% financing.

No MI, Up to 102% LTV (after rolling in funding fees), No questions about credit 620 or above, can do under 620 with minimal risk layering.

If you're a small shop in a rural area you need this product. USDA is easy to get on with and easy to get through UW. We always look to USDA first.

great product for sure but it is purchase only (unless you are refi'ing and existing RD)

you still need FHA for refi bidness.

as stated many times in this thread and elsewhere the best way for a small branch to survive right now is to sign on as a net branch with someone. I'm probably naive but I just don't see why anyone would fight that fact.

CoolMtgGuy

4109 Posts

Posted - 05/19/2008 : 11:44:31 AM

"as stated many times in this thread and elsewhere the best way for a small branch to survive right now is to sign on as a net branch with someone. I'm probably naive but I just don't see why anyone would fight that fact."

I don't think that anyone, certainly not me, is "fighting that fact"...as you put it. There are many reasons why it may not be possible even if it is the recommended choice. Things aren't always as simple as they seem at first glance.

For example, if you had a real estate license, or is involved in a jv that is partly owned by a real estate company, you will find that these situations create lots of complexity from a FHA point as well as with some net branch rules.

My world is not as simple as yours perhaps so I have to continue evaluating what is possible, what I should do and at what price. Others on the thread may have similar background issues to consider.

frank drigotas j

1813 Posts

Posted - 05/19/2008 : 11:50:56 AM

CoolMtgGuy,

I hope that I am not intruding, but I have had a curiousity that you might choose to resolve...or not.

Why did you move from CT to FL ? I trust it was another factor(s) over and above the marketplaces. If you moved because of perceived marketplace opportunity alone, well..

As I said, some things are personal, so I understand if you do not reply.

Regards,

dollar

Xpatriot

333 Posts

Posted - 05/19/2008 : 11:55:05 AM

quote:
Originally posted by slants

Do what the majority of small brokers have already done: become affiliated with a net branch with a small per file fee and access to all 200 remaining lenders and FHA. Retain your broker license for RE closings.

this.

however, we are getting individual licensed through some of these lender on our approved lender list in preperation for going independent.

CoolMtgGuy

4109 Posts

Posted - 05/19/2008 : 12:04:44 PM

quote:
Originally posted by frank drigotas jr

CoolMtgGuy,

I hope that I am not intruding, but I have had a curiousity that you might choose to resolve...or not.

Why did you move from CT to FL ? I trust it was another factor(s) over and above the marketplaces. If you moved because of perceived marketplace opportunity alone, well..

As I said, some things are personal, so I understand if you do not reply.

Regards,

dollar

I do not mind the question.

I had planned this move for over 10 years. The target timeframe was when we became empty nesters. Over that period of time, I set up my business in CT and did very well. I then set up the jv business, also in CT, ran it myself for two years and put a senior LO in charge to keep it going with my support in the background. Then I moved. The LO was ... let's just say poison to my business. I am now struggling to keep the jv alive ... when I had not planned on having to devote this much time, effort and money to that piece of my business.

My plan was to continue growing my independent business in CT & FL while nurturing the jv business to produce quasi-passive income. I love this business. Then the mortgage meltown ... then ... well you know the rest.

CoolMtgGuy

4109 Posts

Posted - 05/19/2008 : 1:34:52 PM

By the way ... I have had an initial conversation with Bob at 1003s.com and it was certainly an informative one and found him to be very forthcoming. Thanks Bob.

RockSexton

591 Posts

Posted - 05/19/2008 : 1:49:50 PM

I'm starting to believe that the writing's on the wall for the small shops. I work in one. I know exactly all the negatives described in this thread. I have to pay $595 per file as well as a %, which varies depending on how many I close. My pipeline that last 2.5 months has been an abomination. I work mostly with inbound calls from our direct marketing, but it's just not panning out right now. Here in AZ, it feels like 99% of the people are upside down. In the past week I think I've turned down 20-25 people.

CoolMtgGuy

4109 Posts

Posted - 05/19/2008 : 1:55:50 PM

I started to express similar sentiments on BO months ago and it was clear that there are those who do not agree. For me, the handwriting has been on the wall for months and the news is on billboards now. My business research and planning exercise is inended to help me think through the challenges that I face today and hopefully make a good decision going forward. No too many choices reall.

quote:
Originally posted by RockSexton

I'm starting to believe that the writing's on the wall for the small shops. I work in one. I know exactly all the negatives described in this thread. I have to pay $595 per file as well as a %, which varies depending on how many I close. My pipeline that last 2.5 months has been an abomination. I work mostly with inbound calls from our direct marketing, but it's just not panning out right now. Here in AZ, it feels like 99% of the people are upside down. In the past week I think I've turned around 20-25 people.

frank drigotas j

1813 Posts

Posted - 05/19/2008 : 1:56:28 PM

CoolMtgGuy,

You are talking to the right person in 1003s.com/bob

One gets to sift out things after a while on BO.

Good luck, man.

dollar

And I understand your reply about locations. I found putting decent LO's in management positions probably the most difficult part of owning a "shop."

bill35

77 Posts

Posted - 05/19/2008 : 2:02:09 PM

i am thinking to look into this the branch manger you reconend for me for my bussiness with the banks much aprecatiton and good blessing

Scrooge McDuck

9824 Posts

Posted - 05/19/2008 : 2:06:40 PM

cmg,

come open a JV up in my neck of the woods. i wont let you down.

i know youre into keller williams, and im sure it has at least something to do with their business of offering overrides. ever consider Exit Realty? the over rides are much more easily attained from what i can tell.

CoolMtgGuy

4109 Posts

Posted - 05/19/2008 : 2:24:04 PM

quote:
Originally posted by Scrooge McDuck

cmg,

come open a JV up in my neck of the woods. i wont let you down.

i know youre into keller williams, and im sure it has at least something to do with their business of offering overrides. ever consider Exit Realty? the over rides are much more easily attained from what i can tell.

Nothing to do with overrides and such. As in any jv, the partner can do whatever they chose to do with their share of profits. Mine goes to my family ... or use to go! My partners chose to give their portion back to the agents via a profit-sharing pool. Not every re company principal does that so I consider it to be a very generous and good thing to do for the people on whom your success is riding.

I am very familiar with Exit Realty. I am currently pursuing a similar jv with one that is owned by two former KW agents. I really do not care what the brand is. I believe that I have a great model that is based on win-win business beliefs and practices.

If I had any passion for real estate sales, I would consider going back into that side of the business as I was very good at it. I prefer to simply do referrals and collect a fee. My goal was never to build a big brokerage ... just a very profitable one. That goal seems elusive these days hence my quest to collect feedback and ideas from some of the very smart people who I know hang out on BO. You for exmple Scrooge!

RockSexton

591 Posts

Posted - 05/19/2008 : 2:24:14 PM

quote:
Originally posted by CoolMtgGuy

I started to express similar sentiments on BO months ago and it was clear that there are those who do not agree. For me, the handwriting has been on the wall for months and the news is on billboards now. My business research and planning exercise is inended to help me think through the challenges that I face today and hopefully make a good decision going forward. No too many choices reall.

I think part of that depends on "where" you're doing business too.....and as I stated before, me being out here in AZ isn't helping. I've held out this long because I legitimately like the mortgage business from the stand point of what I've learned and how it caters to my skill sets. Yet, I can't help but look around and see the barriers growing larger. U/W times taking longer......conditions taking longer..... lender list getting shorter...... large files fees and % paid to the main branch...... far less qualified borrowers........limitation to how much we can spend on marketing getting less because we're getting less loans........ and on and on..........

1003s.com

3434 Posts

Posted - 05/19/2008 : 2:52:48 PM

quote:
Originally posted by CoolMtgGuy

By the way ... I have had an initial conversation with Bob at 1003s.com and it was certainly an informative one and found him to be very forthcoming. Thanks Bob.

Your very welcome Yo, and thankyou for your support.

1003s.com

3434 Posts

Posted - 05/19/2008 : 7:58:47 PM

quote:
Originally posted by frank drigotas jr

CoolMtgGuy,

You are talking to the right person in 1003s.com/bob

One gets to sift out things after a while on BO.

Good luck, man.

dollar

And I understand your reply about locations. I found putting decent LO's in management positions probably the most difficult part of owning a "shop."

Thanks Frank, your support is greatly appreciated.

Pat

657 Posts

Posted - 05/20/2008 : 09:20:37 AM

I disagree about going net branch. I'm in CT and it's just myself and my wife. We have our mini-eagle and now work with perhaps 3 lenders for 95% of our loans (TBW, Provident, Sovereign Bank). We used to work with perhaps 8-10 lenders before the consolidation in the market.

Net branch just adds more overhead, which we hate.

khoiey

1709 Posts

Posted - 05/20/2008 : 09:34:11 AM

Sovereign Bank doesn't have wholesale though. How is that possible?

quote:
Originally posted by Pat

I disagree about going net branch. I'm in CT and it's just myself and my wife. We have our mini-eagle and now work with perhaps 3 lenders for 95% of our loans (TBW, Provident, Sovereign Bank). We used to work with perhaps 8-10 lenders before the consolidation in the market.

Net branch just adds more overhead, which we hate.

khoiey

1709 Posts

Posted - 05/20/2008 : 09:35:01 AM

Sorry they actually do. I stand corrected. How is Sovereigns rate?

1003s.com

3434 Posts

Posted - 05/20/2008 : 11:13:34 AM

quote:
Originally posted by Pat

I disagree about going net branch. I'm in CT and it's just myself and my wife. We have our mini-eagle and now work with perhaps 3 lenders for 95% of our loans (TBW, Provident, Sovereign Bank). We used to work with perhaps 8-10 lenders before the consolidation in the market.

Net branch just adds more overhead, which we hate.

A branch is not for everyone, some broker shops are better off getting their own

FHA. License fees vary by state also, so what make sense in CT, may not make sense

in IL.

IE, in IL it costs 6-12K per year to be a broker, before adding FHA, or Rent.

Layne Jones

1478 Posts

Posted - 05/20/2008 : 12:24:35 PM

Net branching is great for some people. For those that it just isn't the right thing, then you just need to make sure that you are getting lined up with the right lenders. There are plenty of smaller lenders out there that are going to be fine and are doing good business, but if you are going to limit to just a few good lenders, then go with the bigger banks with a proven track record.

mortgageone

8 Posts

Posted - 05/20/2008 : 12:29:38 PM

The best set up I've ever seen for mortgage brokers (loan officers) is with a company in Maryland that lets you keep 100% of the fees and charges you a low monthly fee. The best part is, if you don't close loans in a particular month, they don't make you pay them anything!! AND they're FHA and VA approved! Email me if you want their info at toobercom@aol.com. Good luck!

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