Net Branch FAQ

What are the requirements to become a Branch Manager?

All Branch Managers must have at least:

Will I be a W2 employee or 1099 independent contractor?

You will be a W2 employee. HUD prohibits 1099 compensation.

How are Branch Managers compensated?

The branch is paid 100% of total revenue generated from origination, discount, YSP, SRP and fees paid. The Branch Manager creates the compensation plans for the Loan

Officer, and establishes branch margins for each product.

How are branch expenses paid?

Corporate pays for all expenses such as rent, utilities, phone, marketing, salaries, commissions, etc. These are paid on a pre-tax basis out of the branch's revenue, so your net

result should be similar to owning your own company.

How is the branch Partner compensated?

The branch Partner will normally charge a per file fee, along with monthly fees to cover expenses. Most will also add margins on to their rate sheet pricing.

Can I keep my current company name?

Most branch Partners will require you to originate in the name of the mortgage bank. A select few may allow the use of a dba if allowed by state law.

Who hires the branch's employees?

The Branch Manager has authority to staff the branch as they see fit. However, all employees must pass a background check, and often meet credit requirements.

Who determines how much the employees get paid?

The Branch Manager has full authority to determine staff compensation, including commission splits, bonuses, salaries and wages.

How often is commission and payroll paid?

Typically bi-monthly or bi-weekly, and some will pay weekly or on demand.

What states can I originate in?

Most branch Partners are licensed throughout significant portions of the US. However, you will still have to meet individual licensing requirements in most states.

Are employee benefits offered?

Most branch Partners offer comprehensive benefits including major medical, vision, dental and 401k..

Am I required to maintain commercial space?

Commercial space is normally required. In most instances, an executive suite is acceptable.

Are reserves required to operate a branch?

Yes, typically 1-2 months of fixed operating expenses are required to be held in reserves. Most Partners allow this to be funded from revenue earned during the first several

months.

Is there a minimum monthly production requirement?

Most branch Partners do have minimum monthly production requirements. BlueMantra will help you identify which Partner is best suited for your current and expected level of

production.

Am I able to transfer my existing pipeline over with me?

The depends on the branch Partner. The biggest issue is the transfer of existing appraisals, and normally depends on the Appraisal Management Company each Partner uses.

Who processes my branch's loans?

Loans are typically processed at the branch level. In addition, contract processing is normally allowed. Most branch Partners also offer in-house processing, which may help

streamline the process.

Does corporate have Right of First Refusal?

Normally not. Many Partners allow the branch to decide whether to submit the loan to in-house banking, or to broker the loan out.

Who handles loan compliance?

All branch partners require the closed loan to be sent to corporate for compliance review.

Are there any penalties if I wish to terminate my branch affiliation?

While it depends on your contracts, most branch Partners do not have any termination fees.