In the Spring of 2010 HUD issued its new rule relating to the net worth that FHA lenders must maintain to qualify for licensing. There are interim requirements but as of April 20, 2013 FHA lenders must demonstrate a net worth of $1 Million plus 1% of the total loan volume in excess of $25 million annually.
FHA loans are an important product in the market. What happens if you are a small firm that will not be able to meet the net worth requirement in the Spring of 2013? This question may have you concerned about the next move for you and your firm. Over the past year, we at netbranchology.com have been working with various firms to help them explore their options. If you are the owner of a small firm that can't muster the net worth you should consider this option.
FHA loans are an important product in the market. What happens if you are a small firm that will not be able to meet the net worth requirement in the Spring of 2013? This question may have you concerned about the next move for you and your firm. Over the past year, we at netbranchology.com have been working with various firms to help them explore their options. If you are the owner of a small firm that can't muster the net worth you should consider this option.
Consolidate your operations with a larger firm
Most owners are entrepreneurs who have built their firms themselves and have always controlled the company. They cringe at the suggestion of turning over control to someone else. When structured properly you will find that consolidating your firm with another firm can be a very good move. You, as the owner, can retain a great degree of control, continue to operate with expanded products and put the cash, previously pledged for your licenses, in your personal bank account. You can still play the game but under the wing of a more financially stable group. After the initial adjustment period owners sometimes discover that the new arrangement gives them less to worry about and more time to expand their operation. In a typical consolidation scenario no stock is exchanged and owners do not receive any upfront payments. There are many variations of how consolidations can be structured. The usual choices are: merger, buyout, absorption, acquisition, alignment, subsidiary creation and joint venture. Details of the strategy that's right for your firm can be customized. The important factor is that both parties have an attractive potential benefit and that the risk is understood. Contact Kevin Miller if you are the owner of a firm that is anticipating problems meeting the increased net-worth requirement.
netbranchology.com is a specialty recruiting firm that works with banks and mortgage firms across the country. Job candidates NEVER pay a fee for our services; Our fees are paid for you by our corporate clients.
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