Mortgage brokers have traditionally specialized in locally doing business. The reasons for this are simple: the majority of home loans were created face to face. In more recent times, the telephone and the internet were used by large mortgage companies as a way to expand beyond their localities and compete at national level. While many of these firms have met with great success, the smaller mortgage companies have been forced to compete with foreign-state competition. Have a look at mortgage opportunities for more info on this.
As a solution to this problem arose net branches. A net branch enables a mortgage professional to essentially open a larger firm’s franchised office. Generally this bigger company loans globally, or at least invests in multiple states. Licensing requirements vary from state to state, typically cost from several hundred to several thousand dollars, and often have educational requirements that have to be fulfilled before obtaining the permit. The small broker will be able to compete more effectively at national level by joining a net branch.
The problem with net branches is that they often require that the broker surrender his / her license and assume a whole new identity. This may be fine for someone just starting out in the industry, but the veteran broker who has spent years developing the brand of his company is usually not willing to switch so easily to another brand. Fortunately, there are now opportunities for mortgage net branches that don’t require complete submission to the new format. The reason: Net branch replacements are not actually mortgage net branches, but instead.
Most of these companies are federally chartered banks or trust institutions that act muchas co-brokers. The broker uses their own license and identification for their domiciled state, but when going beyond the boundaries of their own state, they use the mortgage net branch alternative. The broker usually has access to many states and a multitude of lenders while allowing all the licensing requirements to be handled by a different firm.