Many experienced players in the residential mortgage banking industry are itching for the opportunity to own their own bank and market mortgage products across the country. One of the hurdles however is that you would need a formidable chunk of net worth to ante in, say $10 million dollars. Although owning your own bank may seem ambitious, we, at netbranchology.com are pleased to announce that, even if you don't have a liquid net worth of $10M, it is now within the reach of experienced producers to have all of the benefits of owning your own bank with very few of the headaches. Even guys that have been in the mortgage banking business for decades don't know that you can join an existing FDIC member bank and market mortgage products by opting for what resembles a franchise. You've seen the concept before; you make an initial investment, acquire a turn-key package that facilitates your operation and then pay a fee on most transactions to the main franchisor or home office. Ask one of our recruiters about this bank opportunity. Contact Us.
In the mortgage banking industry the arrangement is quite similar except you don't need to come up with an initial investment to buy the franchise. Instead of making an investment, you demonstrate a successful track record in mortgage production to determine your suitability. Typically, you or your operation must show a consistent record of at least $3M annual residential mortgage production. Once you satisfy the production requirement applicants must meet several other criteria. For example, you will be asked to submit a pro forma business plan which outlines your expected income and expenses. Past P and L's are a good place to start; Next, your marketing strategy will be analyzed to make sure that a significant portion of your production is purchase business.
Once accepted you will be required to deposit approximately 2 months operating expenses into a reserve account. These funds remain your property and are used in the event that your expenses exceed your income in any given month.
Other factors to consider are;
(1) interest rates at a bank are typically 25-50 bps higher than comparable programs at an independent mortgage firm;
(2) There is a more defined corporate chain of command;
(3) Loan programs are more conservative than independent competitors.
(4) Highly organized compliance department.
(5) Rigorous report requirements.
Some of the benefits are:
(1) no state licenses for individuals are required.
(2) your office can close transactions across the country.
(3) excellent group health plan and benefit package.
(4) enhanced credibility as a bank.
(5) Increased financial soundness.
Normally the candidates that succeed with this banking program have worked for large banks before and understand the culture of a bank.
Do you like this idea? Want to explore the details? Contact us.
If you have a mortgage firm, whether small, medium or large, and think that your firm could thrive if you convert to this model Contact us to talk about consolidating you firm into the bank. The owner of a larger firm can be given an equity interest in the holding company when they consolidate. Do you have a mortgage firm that you would like to convert to a bank? Yes.
netbranchology.com is a specialty mortgage 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 candidates. Our services are not available in the state of New York.
netbranchology.com specialty recruiters for the mortgage and banking industries...
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A franchise can make good money for us and investors can increase their profit. I am new to this community and i hope you all will update the events day by day.Your information is really very useful especially for those people who wants to enter in franchise business world.
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