|
Special Reports
In this section of BrokerUniverse we examine a subject of key importance
for mortgage originators every month, based on special reports that run in our sister publication, Origination News.
Branch Development
Branch Development: Supporting Originators
Like the base of a human pyramid, the net branch organization provides its managers
with a strong level of support. These firms not only provide back-office and secondary market functions, they also
provide a level of benefits to employees that small businesses find prohibitively costly to do on their own.
Yet, when the base is not formed properly, the pyramid can lose members or crash entirely.
In this Special Report, read how Carteret Mortgage, one of the nation's largest mortgage broker operations, is
providing support to its branches through an alliance with Market Kinetix. Branch operators will have access to
a program that will provide them with ideas to improve the credit score of loan applicants.
On the other hand, there are stories about two troubled branching firms. California state regulators have joined
regulators in nine other states to sanction Apex Financial Group for running afoul of state licensing laws.
Meanwhile, Amstar Mortgage is closing shop and transferring its branches to another entity. The company blamed
the tough market conditions for lenders for its decision.
Amstar is not the only net brancher to go out of business. First Magnus has declared bankruptcy, as has American
Home (which had some net branches). Given the current secondary market conditions, others may be forced out of
business. So for those looking to join a net branching firm (or whatever the parent company elects to call its
own particular model), the need to do thorough due diligence is paramount.
|
