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budginew
44 Posts |
 Posted - 06/25/2008 : 4:35:02 PM
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Hi all,
I am sure this has been a topic in recent history, but I wanted to see if there are any viable options out there.
I have a small shop (15-20 loans a month)and am not FHA licensed. I recently started submitting FHA deals as a "Service Provider" to a company called PerfectFHA which has a program for my situation. Their FHA <Par> rates are about 7% (+.75pt service fee for me charged upfront to the borrower), I decided that I can't in good conscience, knowing that wholesale rates for the same client are 6.5% <1.50>, continue to do transactions this way as a "service provider." Most of my deals are referrals and what better way to burn those bridges than continue on this track.
So... I am open to recommendations. Please bear in mind that I currently am not in a position to get FHA approved.
Thanks in advance for your help. |
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budginew
44 Posts |
Posted - 06/25/2008 : 4:38:50 PM
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| rock...BUMP...hardplace |
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ChicagoMortgage
29 Posts |
Posted - 06/25/2008 : 4:42:13 PM
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| Pat at 7%? Granted the rates are not all that good these days, my FHA par is still 6.375. |
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dtabar
700 Posts |
Posted - 06/25/2008 : 4:43:39 PM
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This is what you can do in this situation. You need to merge with an FHA approved broker. Have all of your LO's, including yourself become their employee. You may lose your name and the way you do things, but atleast you won't lose your business.
It sounds like you have some leverage to get yourself a decent cut.
Anything other than that will just be silly or illegal. |
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budginew
44 Posts |
Posted - 06/25/2008 : 4:47:07 PM
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quote:
Originally posted by ChicagoMortgage
Pat at 7%? Granted the rates are not all that good these days, my FHA par is still 6.375.
Hi Citi - that is exactly what I am saying. Currently, the only way I can submit FHA loans is as a Service Provider...and the rates as a Service Provider are substantially higher than your par rates. |
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budginew
44 Posts |
Posted - 06/25/2008 : 4:48:49 PM
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quote:
Originally posted by dtabar
This is what you can do in this situation. You need to merge with an FHA approved broker. Have all of your LO's, including yourself become their employee. You may lose your name and the way you do things, but atleast you won't lose your business.
It sounds like you have some leverage to get yourself a decent cut.
Anything other than that will just be silly or illegal.
Thanks dtabar, I have been starting to look into that option...it's a hard choice to consider. |
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ChicagoMortgage
29 Posts |
Posted - 06/25/2008 : 4:51:14 PM
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| Why not get one of your LO's to come on board with me, and you can put all the loans through that particular person...just sayin |
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dkendall1979
8702 Posts |
Posted - 06/25/2008 : 4:52:55 PM
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| Read below: |
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budginew
44 Posts |
Posted - 06/25/2008 : 5:00:14 PM
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quote:
Originally posted by dkendall1979
Read below:
Thanks, I will keep you in mind as I discern whether or not to merge into another shop. Could you please email more info?
Thanks. |
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dkendall1979
8702 Posts |
Posted - 06/25/2008 : 5:02:31 PM
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I can put you in touch with the branch provider.
It's more of a relationship branch than a stricly business type deal. You two can work things out to meet your demands. If you see eye to eye, I'll get 90% of your FHA business and they've got a priority status with us.
quote:
Originally posted by budginew
quote:
Originally posted by dkendall1979
Read below:
Thanks, I will keep you in mind as I discern whether or not to merge into another shop. Could you please email more info?
Thanks.
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RGK2394
1070 Posts |
Posted - 06/25/2008 : 5:33:33 PM
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| Why can you not get FHA approved? Assets? $ to spend on financial audit, other? Don't want to give up 1099? |
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budginew
44 Posts |
Posted - 06/26/2008 : 09:32:37 AM
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quote:
Originally posted by RGK2394
Why can you not get FHA approved? Assets? $ to spend on financial audit, other? Don't want to give up 1099?
I currently have a partner with some IRS tax liens... 25% owner of the business. |
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MacMortgage
70 Posts |
Posted - 06/26/2008 : 09:50:00 AM
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It's time that you decide to be an LO or Branch Manager thru another net branch company that has the ability to bank FHA.
There are net branches that will allow you to continue your own business on the side. I suggest you contact Bob (1003s) very quickly. |
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ski2313
718 Posts |
Posted - 06/26/2008 : 09:51:12 AM
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Anyone know if Envision Lending allows a company to retain and market it's own name?
That would solve your problems.. Sign up with them at 100% commission and FHA approved immediately.
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rcho
33 Posts |
Posted - 06/26/2008 : 09:57:18 AM
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| Why don't you net branch such as Dove Capital,. |
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budginew
44 Posts |
Posted - 06/26/2008 : 10:11:35 AM
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quote:
Originally posted by rcho
Why don't you net branch such as Dove Capital,.
One of my problems with net branching is fees and branding. Currently I have a full time processor and I need to charge my processing fee and admin fee to pay her salary and bonuses. In addition to her I have my other overhead...office, copiers, fax, etc., that I couldn't cover without charging my fees. Add to that the time and money spent on branding in my area, I am concerned about losing my name.
Ideally, I think what I am looking for is a company that would allow me to do business as usual for my non-FHA deals, and only charge me for the FHA product. Net branching is not out of the question...but if I make that move, I would have to make more cuts here at the office, and I would rather not do that. |
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SkyChimp
61 Posts |
Posted - 06/26/2008 : 10:20:28 AM
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quote:
Originally posted by dtabar
This is what you can do in this situation. You need to merge with an FHA approved broker. Have all of your LO's, including yourself become their employee. You may lose your name and the way you do things, but atleast you won't lose your business.
It sounds like you have some leverage to get yourself a decent cut.
Anything other than that will just be silly or illegal.
This really is the best option if you don't want to file Chapter 7, that is if it's getting that bad. |
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currency
31 Posts |
Posted - 06/26/2008 : 11:36:54 AM
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| Start your own NET BRANCH that offers 100% or 90% Commission- you do the same thing, have more money in your pocket and you are automatically set up with FHA with all lenders. I was nervous at first , but I made the change and I LOVE it! You are doing the same thing- making less money now...why not. You could probably recruit your people pay them a little more and keep part of their commissions also. And- you could probably work from home or rent a small space, and still come out way better. Just a thought. |
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currency
31 Posts |
Posted - 06/26/2008 : 11:38:23 AM
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| Sorry- didn't see the other post about Net Branches... |
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TheBigGuy
378 Posts |
Posted - 06/26/2008 : 11:50:32 AM
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This is really a time to put ego's aside. I have been merging small Broker shops into my company for about 6 months now. It ***** for them, because they feel like they have failed. They are not failing, they are making the choice to succeed in this industry. EVERY industry goes through consolidation periods. The trick is surviving them and coming out stronger on the other side.
I would recommend biting the bullet and finding a FHA broker to merge with. Its not like this is all going to blow over in a month or two and you wont need FHA. |
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loyboy
2 Posts |
Posted - 06/26/2008 : 12:05:02 PM
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EBW
Contact me when you get a chance I believe I have the perfect solution for you, you willnot have to cut your overhead or lose money on deals we only charge 295 per deal and we have inhouse processing but you are welcome to use your own. Visit my website www.295netbranch.com
John Loy
Citizens Financial Mortgage
Net Branch Director
jloy@citizensfinancialmortgage.com |
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budginew
44 Posts |
Posted - 06/26/2008 : 12:13:48 PM
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quote:
Originally posted by TheBigGuy
This is really a time to put ego's aside. I have been merging small Broker shops into my company for about 6 months now. It ***** for them, because they feel like they have failed. They are not failing, they are making the choice to succeed in this industry. EVERY industry goes through consolidation periods. The trick is surviving them and coming out stronger on the other side.
I would recommend biting the bullet and finding a FHA broker to merge with. Its not like this is all going to blow over in a month or two and you wont need FHA.
I agree, ego does need to be put aside. And no, it's not going to blow over in a month or two. Neither are my bills...computers, copiers, fax, lease, etc.. So, in the end I think merging with another company may be the best option, but I still need to way all of the options.
BTW - After my first downsize I am left with a extra Gestetner DSc445 Super G3 copier/fax/scanner. Here is the craigslist ad if you are interested: http://sfbay.craigslist.org/eby/sys/733613758.html |
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CoolMtgGuy
1948 Posts |
Posted - 06/26/2008 : 12:39:38 PM
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And then what? Are you proposing an illegal arrangement to solve his current challenge? How is this broker to collect any revenue from an originator who is a W2 employee of yours? Please explain.
quote:
Originally posted by ChicagoMortgage
Why not get one of your LO's to come on board with me, and you can put all the loans through that particular person...just sayin
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