Entries from February 2010 ↓
February 23rd, 2010 — Mortgage Net Branch Information
It’s amazing the number of new mortgage net branch companies that pop up every year only to close their doors a year or two later. Failure to make payroll or a government shut down is typically the cause. Why does this cycle exist and how can you avoid it?
A mortgage branch company is not an easy business to manage or operate. To some, it sounds like a quick way to get rich. Hire a lot of loan officers, make a couple hundred dollars off each loan, and retire in a couple years. If only it was so easy.
You will need at least $100k per month just to cover corporate salaries. Don’t forget about the phone lines, office space, insurance, frivolous lawsuits, audits, software, and wide array of other expenses. It’s best to plan on a minimum of $200k monthly in expenses just to get started. All of those loan officers and loans to fund need lots of attention.
Government regulations – you need a library of books just to keep up with every governing agency. Multiple state and federal agencies all have rules on how you must operate your business. To make things even more complicated, these rules are often confusing, not clearly written, and have a habit of changing without much notice or any explanation.
Investor guidelines can sometimes be a moving target. Have you ever read a correspondent or broker agreement? Notice who takes all of the responsibility and risk? If a borrower fails to make the first few loan payments, even when the reason is beyond your control such as a job loss or illness, guess who owns that loan now? The mortgage branch company. Not only does the mortgage branch company get to underwrite, close, and fund loans, they also involuntarily become real estate investors and loan servicers.
In order to operate a mortgage branch company, you must have experience in doing so. Most of the mortgage net branch companies that start every year are done so by persons with mortgage industry experience, but no real experience in actually running a mortgage branch operation. They are blind to the realities that exist and are quickly overcome by financial problems and government headaches.
An often overlooked component in a successful mortgage net branch company is the commitment and passion needed to assist the mortgage branches by the corporate staff. The dynamics between the corporate staff and loan officers is uniquely personal. Excellent customer service to the mortgage retail branches requires specialized professionals with a broad understanding of the mortgage business. Mortgage retail branches depend on this vital link to the corporate office to succeed. When the branches succeed, the company succeeds.
When looking at mortgage branch companies, find out how long they have actually operated in such a capacity. What kind of staff do they have in place? Does the CEO also act as the licensing specialist? Ask for a corporate office employee roster with job titles. If you want to be a guinea pig with a mortgage branch company that only has a couple years or less of experience, be prepared for the day when the corporate office phones are no longer answered and your paycheck bounces.
Southwest Funding is one of the oldest retail mortgage branch companies. Originally started as a single retail operation in 1993, the company quickly expanded and added branch locations throughout Texas. In 2004, the company amended its name from Texas Residential Mortgage to Southwest Funding as mortgage branch offices outside of Texas started opening. HUD approved since 1996, Southwest Funding has the proven track record and experience to be your mortgage branch provider.
February 15th, 2010 — Southwest Funding News
Leading mortgage retail branch provider Southwest Funding is proud to announce that Carolyn Clark has joined the Southwest team as Field Recruiter within the Business Development group. In her role, Clark will focus on seeking new mortgage branch office locations and expanding the company’s rapidly growing mortgage banking division.
“We are very excited for the new additon to Southwest Funding’s corporate recruiting team,” said Mark Buskuhl, Southwest Funding’s COO. “Southwest Funding’s business model has proven very popular and Clarks vast connections in the mortgage lending community will complement the expertise of our team in helping us to achieve our goals.”
Clark is very well known in the mortgage community where she has worked for several mortgage trade goups including the North Texas Assosciation of Mortgage Professionals, f.k.a Dallas Mortgage Brokers Assosciation; DFW Assosciation of Mortgage Professionals; Greater Houston Assosciation of Mortgage Professionals; and Austin Assosciation of Mortgage Professionals.
“I am excited to join Southwest and leverage my connections to offer a net branch alternative to the many mortgage professionals I interact with on a daily basis”, said Clark. “With the recent changes in our industry, now is the time for every mortgage loan originator to connect with Southwest Funding, the leader in mortgage branching. I look forward to growing with company and the new offices we acquire.”
February 8th, 2010 — Mortgage Net Branch Information
The overhaul of the mortgage industry by the government has changed the business models of many companies. Wholesale mortgage lenders fearful of their ability to survive in the near future are trying to become retail mortgage net branch companies over night by turning customers into employees.
Can they do it? Most will not be able to succeed. Wholesale mortgage lenders lack the experience to operate a retail mortgage branch company. They are not accustomed to licensing originators. Accounting and payroll departments are not in place, most do not offer the ability to also “broker” mortgage loans but require all loans to be “banked”. When you lose the choice to broker a mortgage loan, the mortgage banking company has no competition and you have no alternative, no plan B for your loan. Turn times can slow down, pricing can worsen, your employer – the mortgage banking company – does not have to compete for your business. Not only do you suffer, but so do your borrowers.
A true retail mortgage branch company offers BOTH mortgage banking and mortgage brokering, and lets you make the decision each and every time on how you want to close your loan. This type of arrangement puts you in control and requires your employer, the mortgage branch company, to be competitive with their mortgage banking.
Not too long ago wholesale mortgage lender account executives served as the sales representatives for the wholesale mortgage lender to develop new mortgage broker relationships and maintain existing ones. Today, many account executives are being faced with new a job description – Keep your mortgage broker customers AND go find some loan officers to work for us. This presents a conflict of interest, the account executive must manage loan officers who are now employees of the wholesale mortgage lender, and they must continue to manage their mortgage broker customer base. The mortgage broker is in direct competition for the same borrower as the loan officer of the wholesale lender.
What if you had the ability to bank mortgage loans with multiple lenders and broker mortgage loans when you wanted? Could you really have both? Contact us today and find out why we are the industry leader in mortgage retail branch opportunities. Southwest Funding is truly you net branch alternative.
February 2nd, 2010 — Mortgage Marketing and Training
Are you tired of paying for mortgage leads only to compete against every other mortgage broker on rate and fees? Stop wasting your time and money.
Mortgage branch opportunities with Southwest Funding open up new channels of business not available to most mortgage brokers. Have you heard of the Fannie Mae Homepath Loan? We offer it. With Southwest Funding, it is one more way to generate free mortgage leads.
· Go to www.homepath.com and use the search function to search for properties in a specific state and county
· Click on one of the properties listed. Below the MLS information you will see the Real Estate agent name and contact information
· Contact the Real Estate agent and let them know that you can do the Fannie Mae Homepath loan (If you can not, you may want to consider a mortgage branch opportunity with Southwest Funding)
Here are some benefits of the Fannie Mae Homepath Loan:
· Up to 95% ltv (primary residence), 90% ltv (second home), and 85% ltv (investment property) only needs a 660 Fico Score
· Up to 80% ltv (primary residence, second home, and investment property) only needs a 620 Fico score
· Up to 6% Seller Concessions allowed for LTV’s from 75.01%-95%, 9% Seller Concessions allowed for LTV’s 75% and below
· No MI regardless of LTV!
Southwest Funding is the net branch alternative giving you the tools, support, and resources to be successful.
Subscribe to RSS Feed
