Questions to consider when contemplating a branch partnershipJohn Knowltonincrease profits, reducing administrative costs, obtaining licensing
For many Mortgage Brokers, a branch partnership can be an
extremely rewarding and profitable way to succeed in today's
mortgage industry. There are many benefits to branch partnership
programs, which help Mortgage Brokers increase profits by reducing
administrative costs, obtaining licensing, and granting access to
numerous lenders and programs. However, not fully researching the
options you have when choosing a partner can be detrimental to your
business.
Make sure you answer some of the following questions when you're
choosing a business partner:
Do you have a banking division?
With some of the recent changes we have had in this industry, and
with even more on the horizon, it is very important to have the
ability to close loans with your own company, as well as the
freedom to broker them when necessary. There isn't one lender out
there that can do everything you need, so having access to several
is crucial. However, if you can do the majority of your business
with your own company, it will result in better loans for you and
your clients.
What type of programs and how many different programs do
you offer?
The amount of programs and products offered will have a direct
impact on your pocketbook. Products and programs such as Federal Housing Administration/Veterans Affairs, reverse mortgages,
construction and commercial will add to your list of specialties,
thus allowing for more business.
Do you have experienced support staff to help with
administrative functions?
One of the primary benefits of partnering with another mortgage
firm is to reduce time and cost spent on administrative functions,
such as compliance, human resources, information technology,
marketing, payroll and processing, giving you the ability to focus
on doing what you do bestclosing loans. The more administrative
support available to you from your partner, the more effective you
will be in reaching your goals.
How can you help me attract top producing loan
officers?
In addition to the benefits mentioned above, you will want to know
if a company can offer you and your employees certain benefits,
such as health/dental care, disability, flexible spending and 401k.
The combination of all these benefits will be a very useful tool in
recruiting productive employees.
What are your compliance policies?
Compliance can cover everything from licensing, background checks,
file review and closed loan audits. When you partner with a
company, you will become one of many branches. It is extremely
important that the company you work for is taking the necessary
steps to be sure every loan is being done within the rules and
guidelines we have in this industry.
These are just a few of the questions you need to consider when
looking at branch partnership. If at all possible, go to the
company headquarters and meet with some of the key personnel. In
addition, make a call or two to some of the existing branches to
get their perspectives. Be sure to do your research—you need
to find a partner that is a good fit for your individual
situation.
John Knowlton is president of First Choice Mortgage. He may
be reached at (262) 513-9853 or e-mail
[email protected].
