A mortgage net branch is part of a larger lender that’s able to originate loans in the lender’s name. Another way to look at net branching is the same way some chain restaurants or retailers operate with franchises. Each net branch is an affiliate, or franchise of the larger mortgage company. There are many benefits of net branching over being an independent mortgage company. Here’s what you need to know if you’re thinking of accepting a mortgage branch opportunity.
Less Licensing Hassle
Being a mortgage net branch makes it possible for you to save money on state practice requirements and licensing fees that would be required of an independent company. The mortgage company you work with will already have the licenses and credentials, so that you can focus more on getting started and recruiting employees and clients instead. Most mortgage companies are licensed in numerous states around the country.
Net branches allow the mortgage company to grow, so they’re willing to offer extensive support to ensure your success. They’ll help you find ways to succeed in a competitive environment and be willing to share the knowledge and expertise they’ve gained from years of experience so that your branch is more successful. Being a net branch also gives you access to additional resources like information technology, underwriting, marketing, and human resources.
Human Resources Support
Mortgage branches enjoy the same benefits that employees of the main mortgage company enjoy. They receive the same health, dental, vision, and life insurance benefits as well as retirement plans. Being a net branch also means you have fewer human resources responsibilities, like all the paperwork that deals with hiring and termination, COBRA administration, and employee counseling and evaluations. Leaving the HR responsibilities to the overseeing lender makes it easier to focus on your customers.
In addition to support as a mortgage affiliate, you’ll get better training for your employees on all the different products a lender can provide. You’ll better understand the different types of loans from conventional, FHA, USDA, VA, Jumbo loans, and other products. Net branching also offers you flexible guidelines to help you better serve your customers and keep your employees happy. The additional training you and your employees will receive will not only ensure they’re part of the most knowledgeable team in the lending business, but they’ll also learn how to market better and help your branch grow and see greater success.