Written By: Karen Deis, an interview with Jessica Peterson, LendingLadies.com
Does it seem to you that there is a concentrated effort to put brokers and smaller-sized mortgage bankers out of business?
It’s just not fair—but it’s the new reality!
Restrictive laws; HVCC; new underwriting guidelines; MI companies and the billion dollar bankers are making it incredibility impossible to do business these days.
So what’s happening? Brokers are looking to affiliate with a net branch. Loan officers who ALREADY work for a net branch are looking for better splits. Other net branch companies are NOT even accepting applications.
But some are! This article is not about recommending one net branch over another. It’s about asking the right questions - to determine if it’s the right fit for you and your company’s culture.
Jessica Peterson, LendingLadies.com, has been searching for a net branch to affiliate with for over a year. What she found while shopping for one will surprise you. The hidden fees, the ambiguous contact clauses, and much more.
She interviewed 23 companies and has complied a list of questions you might ask. (Subscribers can download 31 questions).
Karen: Let’s start with the “elimination process”…how did you determine which companies you did NOT want to interview?
Jessica: Think of Google as your friend. Type in the name of the net branch, the name of the owner, the words “complaints and lawsuits” and you’d be surprised what you find. I found lawsuits. I found consumer complaints. I found complaints from past employees.
Karen: You can’t rely solely on the Internet—the complaints may not even be legit. But the lawsuits would bother me. They may not be legit either, but if it makes it to the courts, and the company has to settle or loses the lawsuit, it could bring down even the best of companies.
Jessica: You’re right. I talked with a very reputable company who has a lawsuit against them and the president admitted that they are spending thousands of dollars in attorney fees.
Karen: What ambiguous clauses have you found in reading the contracts?
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