Skip to main content

LenderCity Launches Net Branch Alternative With Unique Franchise Program

Jun 16, 2011

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.
About the author
Published
Jun 16, 2011
STRATMOR, Teraverde Deal A 'Merger Of Equals'

The recent merger of mortgage advisory firms came without the need to lay people off or make any major staffing changes.

May 23, 2024
NEXA Pays Loan Officers 100% Of Commission Splits

LOs won't pay per-file fees or other hidden fees with NEXA100, says NEXA Founder and CEO Mike Kortas.

May 22, 2024
The Right Prescription

‘Doctor Loans’ making healthy strides in Florida

May 21, 2024
123 Newrez Employees Laid Off In Florida and Colorado

WARN Notices were filed the day after Computershare Mortgage Services, SLS acquisition closed.

May 07, 2024
Ishbia Predicts A Rate Cut By Election Day

CEO of United Wholesale Mortgage shares 'personal perspective' in new YouTube video

May 03, 2024
Yield Curve, Schmield Curve?

The yield curve is a harbinger, not the be-all, end-all for lenders.

May 02, 2024