September 16, 2017

Summary Of Relationship

50 State Exemption (and D.C.)
All mortgage net branches are exempt from state licensing requirements and legally entitled to do business nationwide upon approval of their affiliate net mortgage branch manager application.

Zero Start-up Costs
There is no mortgage net branch application fee and no up-front reserve requirement.

Fees

  • Monthly insurances (Errors & Omissions, liability, worker’s compensation) are provided at wholesale rates obtained by the bank. As an example, a 4 person office would cost approximately $80-90 per month, a 5-9 person office would cost approximately $130-140 per month, and a 10+ person office would cost approximately $200-225 per month.
  • Third-party payroll services are provided at cost, which by way of example would cost approximately $65 per pay period for a 4-person office.
  • There are no monthly accounting fees, no state licensing fees, no continuing education costs, and no monthly minimum fees due to the bank.

Commissions/Revenues

  • 100% is credited (front & back & fees) on loans that are banked.
  • Banked loans include $750 of pass-through (to customer on HUD-1) fees including: flood certs, doc review, underwriting, tax service, etc.)
  • Brokered loans pay 3/8 of a point maximum to the bank, which declines at increased volume levels. For example, after $1.5 million the bps. fee drops to 32, and after $2.5 million the bps. fee drops to 29. The brokered loan fee to the bank is capped at $1,250 per loan.

Accounting

  • The bank has a 72 hour (maximum) turn around for check requests.
  • Normal payroll is twice per month, and disbursements of net income earned by the affiliate net mortgage branch also are paid twice a month.
  • Regular branch expenses are paid by full-time, professional, corporate accountants, who maintain your books, cut your checks, and provide to you a monthly summary statement. All of this is free of charge as there are no monthly accounting fees.

Requirements

  • A candidate to be a mortgage net branch manager must be able to furnish a quarterly production report illustrating closed loan volume of $5,000,000 or greater per month, and closed loan volume of $15,000,000 or greater during the most recent 3 months.
  • A candidate to be a mortgage net branch manager must have a minimum of 3 years of successful, full-time, retail mortgage loan origination experience.
  • A candidate to be a mortgage net branch manager must be able to pass criminal, CAEVRS, MARI background checks, and have no felonies of any kind.
  • A candidate to be a mortgage net branch manager must be able to pass credit checks.
  • A candidate to be a mortgage net branch manager should have operating funds in reserve.
  • A candidate to be a mortgage net branch manager must attend a mandatory orientation & training session (by computer or in person-one of first two sessions offered after approval).
  • A candidate to be a mortgage net branch manager must maintain a monthly minimum of $5,000,000 in closed loan volume on an average monthly basis…based on quarterly and/or six month look-backs.
  • A candidate to be a mortgage net branch manager must attend an annual branch manager’s training conference.

Miscellaneous Benefits

  • There is no disclosure of yield spread on banked products.
  • New mortgage net branch manager applications are processed and decided upon in approximately 12 days.
  • A growing approved investor list will soon exceed 100 lenders.
  • Medical benefits are through Aetna insurance
  • LOS = Ellie Mae Encompass
  • The bank has no approved title company lists…use anyone you like.