BlueMantra - Mortgage Bank Branch Recruiters

Do you have an in-house banking program?

It is critical to have an in-house banking platform up and running right now. It appears imminent that yield spread legislation will pass on the federal level, thus making the

mortgage broker obsolete. It will take months to set up warehouse lines, hire and train an underwriting, closing, and post-closing staff, establish correspondent relationships, and

learn the guidelines and procedures of each investor. In addition, do you want to be the guinea pig for this newly formed banking unit, dealing with new underwriters, untested

procedures, and lack of familiarity with investor guidelines?

Tell me about your funding capacity

Warehouse lines are the bottleneck for non-depositoy mortgage bankers today. They should have multiple warehouse lines in place, and have a low utilization percentage in

order to bring on new branches and handle temporary volume increases due to favorable interest rates.

Who are your correspondent investors?

The branch company should be set up with multiple correspondent lenders. As the saying goes, you should never put all your eggs in one (or two) baskets!

How do you make money?

Mortgage bank branch companies can make money in much the same way a mortgage broker can make money originating a loan -

Remember that nobody works for free. A mortgage banker advertising 100% commission and 100% YSP with absolutely no fees has to be making money somewhere - in this

case by keeping all the SRP.

Do you have Right of First Refusal?

Branch companies maintaining the Right of First Refusal require all loans to be submitted through their in-house banking program first, thus restricting your flexibility and

independence.

What are your FHA Compare Ratios?

Compare Ratios compare a company's FHA delinquencies against the general population, and are expressed in percentages. A company with a 100 compare ratio has average

delinquencies, while a company with a 200 compare ratio has delinquencies that average 2x the norm. Companies with higher compare ratios are at greater risk of being

terminated by HUD.

May I have a list of your active branches?

The best way to verify the facts and to assess the branch company's performance is to talk to a couple of active branches. However, you should not rely on a select list of

branches supplied by corporate that they know will give positive reviews.