Mortgage net branch companies are also called mortgage net branch originators. These are the companies – huge enterprising conglomerates – that wish to spread their mortgage business all over the nation, or maybe all over the world. These are the companies that invite franchises, better known as mortgage net branches, from all over in order to conquer hitherto untapped territory. Originators gain by getting more business and goodwill; net branches gain by getting their brokerages and security of business.
Though mortgage companies wish to have as many net branch companies in as many parts of the nation as possible, they do not blindly select their branches. There are certain judging parameters. Of chief importance is whether the applying branch has its own license in the state where it is going to operate. Besides this, there are requisites like two or three years of experience, communication skills and even a written examination. Net branch companies make their prospective net branch applicants fill application forms and pay an amount to partake of their brand name and goodwill. Mortgage companies are obliged to take net branches according to the guidelines of the Housing and Urban Development (HUD) code.
Most mortgage net branch companies have branches all over the nation. Some of them even have more than one branch per state. Their main aim is to infiltrate each potential mortgage market within the country. Even after choosing their net branches with care, mortgage originators provide training and orientation according to their own policies, along with machinery to process and write loans.
The payment to the net branch is done on a commission basis. Usually, if the net branch is operating from an office, then the remuneration is normally split on a 90-10 basis. That is, the net branch gets to keep 90% of the commission, while the company keeps 10% along with a small sum to cover the procedural charges. But if the net branch is working from home, then the mortgage company may keep a larger amount of the payment.
The mortgage company is fully responsible for the activities of its net branches. Any volition by a net branch may lead to the termination of the license of not only that particular net branch, but also all other net branches of the company, and in dire situations, of the parent company itself. Hence, mortgage companies have to select their net branches with extreme care, having a background check done and checking references.