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Keys to Successful Financing of Senior Housing Healthcare Properties

National Mortgage Professional
Apr 28, 2001

Lender/Net Branching RelationsHarold Bariannet branch, Multiple Lenders, FHA, VA The advantages of a net branch office are touted in every advertisement put out by the recruiting company: multi-state licensing, FHA and VA financing, high payouts, etc. One of the major benefits is the ability to do business with hundreds of lenders. A smaller mortgage company would have an extremely difficult time establishing and maintaining relationships with more than a handful of wholesale lenders. Many lenders have stopped taking on new broker relationships in the current booming marketplace. The only way a smaller broker can get their business is through an affiliation with a larger company that has an established relationship with a specific lender. This parent company provides the staff, expertise and financial clout that allows the branch office network to offer the greatest possible selection of mortgage products. Multiple Lenders There are numerous benefits to working with multiple lenders. Each lender offers an individual product menu, distinct underwriting, geographic coverage and other unique possibilities. If you have access to more investors, then you will have the ability to process a greater variety of loans and place them all with that particular lender whose offerings can accommodate them. Being able to shop around to place a difficult loan is truly advantageous to a branch office. Additional closings equal extra income, and the small-time broker would be able to compete with the big boys. The ability to talk with the lenders representative or underwriter, and breed familiarity their nuances, can lead to lenders placing a higher level of confidence in your business. These are the relationships that the branch manager brings with them when they join a net branch company. Access to Programs The lenders' programs must be accessible. Providing the branch offices with a list of phone numbers is not enough. One solution is to provide a Web site where anyone at the branch office can search the lender matrix by a number of criteria, including products, credit scores and state coverage. Once the right lenders is identified, then they can call them and proceed directly over the telephone. Lender Relations Lenders also benefit from dealing with net branches. Each lender has their own method for establishing and maintaining relationships with branch operations. The initial approval process is usually handled by the home office and frequently requires the submission of sufficient information, so that the lender can provide service to the individual branch office. Here is a list of some of the different lender procedures: ++The relationship is with the home office, and the lender's representative services all of the branch offices. ++The lender provides separate identification numbers to each branch and individual representatives for service. ++The lender treats each branch as a separate entity, all of whom must obtain lender approval. The lender controls the relationship with the broker, who has no input into the procedure. No one particular method is used more exclusively than any other. Control and Compliance There are issues of control and compliance that exist just below the surface of the lender/net branch relationship. What happens when a branch office is in violation of a lender's rules? How can the parent company control an individual branch thousands of miles away? The parent company is ultimately responsible for the acts of its brokers and branches. When dealing with infractions, the lender can terminate the selling agreement with the parent company, ending the relationship with the branches. The other approach is to terminate the relationship with the individual branch office, prohibiting them from submitting loans to the lender. Compliance is a major concern, and it is incumbent upon both the lender and the company to always ensure that it is of utmost concern. When it comes to salesmanship and marketing, the personal relationship is extremely important. Having access to 300 lenders is great, but possessing the ability to talk with half a dozen lenders that can help work out a deal is imperative. For the lender, it is a matter of quality over quantity; dealing with 20 successful branches is preferred to having access to brokers in 200 offices. The ultimate goal for both the lender and the broker is to benefit from the relationship, and while not impossible, both parties need to put in the effort to make it work.
Apr 28, 2001
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