MORTGAGE NET BRANCHES FOR MORTGAGE ORIGINATORS

2007-05-02 10:04:19

( Financial )



What are Mortgage Net Branches?

Mortgage net branches are franchises of mortgage companies to another mortgage companies or group of professional brokers to handle their operations in areas where it has no branch. It is actually the term referred to the latter.

Characteristic of Mortgage Net Branches

Smaller companies characterize mortgage net branches. These companies might be bank mortgage brokers handling mortgage processing for a specific mortgage originator, the common term used for the mortgage company that franchise its operations.

These companies are reputable in the area they operate and since they are smaller in size provide personalized service to their clients. Also, they know the area very well thereby can assess its needs and marketing response to products offered by mortgage originators.

Why Use Mortgage Net Branches?

Mortgage companies use mortgage net branching to expand their operations to new locations without incurring costs related to setting up an actual branch. It helps them save administrative and physical set up costs while they are in the process of evaluating the market response of a particular area to their mortgage products.

Requirements to Mortgage Net Branches

License and experience record in handling all types of mortgage are the main requirements in becoming a mortgage net branch. Mortgage originators conduct evaluation of potential mortgage net branches’ market reputation, exposure, communication and location to determine their ability to handle the mortgage business of mortgage originators. Selection of mortgage net branch is tedious and planned carefully by mortgage originators.

Mortgage net branching gives opportunity to small entrepreneurs and professionals to gain wide exposure and credibility in the market. Small companies’ further benefits from this arrangement by becoming recipient of professionalize service that mortgage originators provide. Mortgage originators, on the other hand, benefit from it through an expansion of its operations using limited resources. Thus, it works both ways for the two parties.


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