What Are Net Branches?

Net branches in mortgages are departments or areas within a large mortgage lender or a bank that employs loan originators. When net branches originate loans, they make all the income without being responsible for the lender administrative fee. Being a net branch lender means you save on licensing fees and state practice requirements. You gain the use of the name, licensing, and credentials of the company if you are a successful applicant. While you become an employee of the lender, you still maintain an independent status as you run the branch.

How to Choose a Net Branch Company

Mortgage net branching opportunities are available from known lenders who will provide you with the tools and training you need. The best companies allow you to run your business and work on loan originations instead of having to deal with operations and overhead matters. Since you are also an employee, a full benefits package that includes health, vision, and dental, insurance along with a retirement saving program, may be offered. Choose a net branch company that offers good rates to make you competitive against other lenders, fast decision-making turnaround times to minimize delays for your customers, underwriting services, and a portfolio of products to give customers options under varying circumstances.

Professional Tools and Benefits

Because mortgage lending is a highly competitive business, the net branch company needs to provide you with the tools you need to succeed. As loan originator working in net branches mortgages, you may have access to a compliance department that confirms that you and your staff are knowledgeable on regulatory changes through training libraries, corporate training, and training software. The accounting software provided is usually compliant for use in the mortgage banking industry. Marketing assistance should be provided to promote your business, which may include radio ads, signage, videos, commercials, billboards, websites, photos, or direct marketing. Information technology training is also critical, and having everyone on your team trained consistently on the same software helps your business grow and optimizes the workflow. Some companies may also offer origination software, continuing education programs, and automated electronic systems to help you work more efficiently, especially with loan documents. You should also have technical support for hardware and software issues.

There’s Even a Human Resources Department

While running your net branch, you may not have the time or capacity to handle your own human resources (HR) department. Net branching companies may have a human resources department that you can outsource this to. Besides benefits, human resources can provide consultations on compensation plans and manage payroll and recruiting, which include application processing and background checks. Employee conflict resolution is also another HR feature that may be available.

Working in net branches in mortgages means that you can earn the revenue from loan originations but keep overhead costs down by working for a net branching company. The net branching company provides tools you need for success, including the latest equipment, up-to-date industry training and support. The branching company provides underwriting, competitive rates, and a selection of loan products to help generate loan originations and revenue.