LenderCity Launches Net Branch Alternative With Unique Franchise Program

LenderCity has announced that it has completed its Uniform Franchise Disclosure Document (UFDD) and plans to sell franchises nationwide. The company, which has been in business since 1997, was founded by president and Chief Executive Officer Gregg Harris. "I see a growing trend for smaller independent mortgage brokerage offices," said Harris. "Recent regulatory changes in the industry that restrict a loan officer’s income are making it more conducive for them to go into business for themselves. However, the franchise model allows them to benefit from being part of a larger organization while maintain complete control over their business.” Although franchising has been offered previously, there is virtually no company currently offering franchising in the United States mortgage market, making LenderCity a true pioneer. LenderCity is bucking the trend, with the only current offering being a “net branch” model. This means that a loan officer or mortgage broker who wants to become a net branch really just becomes an employee of the company. For a mortgage broker, this also means surrendering their license and giving up their corporate identity. Under the franchise model, the franchisee is independently owned and operated. They maintain autonomy and control their business, but have the backing of a national brand, marketing, and lead generation. LenderCity also provides back-end administrative support so franchisees can focus on doing what they do best, originating loans. LenderCity will allow a maximum of 20 franchises in 2011, and look to double that number to another 40 in 2012.