A Mortgage Net Branch is an affiliate branch of a conventional mortgage banking company. The Net Branch manager works the branch with oversight authority for both the payroll supervision and the operations expenses. The Net Branch offers mortgage services and various commercial mortgage products through the Net Branch office. Offshore branches are sometimes included in the Net Branch services.
The net branch is an integral part of the Mortgage Loan officers (MLO) office. Loan officers play a major role in managing the overall profitability of the lender. Lenders hire Loan officers who have strong knowledge, judgment and negotiating skills to deal with any issue concerning the loan. Loan officers are involved in negotiating on behalf of the lender with the borrowers for approval of the mortgage rate and terms.
Mortgage bankers provide mortgage net branch services through their Net Branch office. The mortgage bank provides support staff to serve the Net Branch requirements. The support staff assist the Net Branch manager with loan origination, underwriting, servicing, settlement, servicing, loan consolidation and information services. Mortgage bankers may be employed full time or part time by the lender. Full time employees are usually involved in the daily management activities of the Net Branch office.
The Net Branch office is generally located in the lender’s corporate headquarters or at one of the branches. There are some companies that conduct business from a post office box. For Net Branch offices, there are costs for space rental, utilities and operating expenses. Some of these costs include:
The Net Branch consists of a Net Loan Originator, an Affiliate Foreclosure Specialist, an Office Manager, Loan Originators, a Loan Officer and supporting staff. The Net Loan Originator is responsible for the loan origination process. The Affiliate Foreclosure Specialist is responsible for working with lenders to originate loan applications. The Loan Officer is responsible for loan management, loan origination and loan repayment. The Loan Officer also ensures that the lender receives all application documentation such as appraisals, verification, etc.
Loan Originators and/or Mortgage Bankers are not associated with the Net Branch. They report directly to the parent company. Mortgage bankers, loan originators and/or Mortgage Bankers work for the lending institutions where they have direct relationships with loan originators and/or Mortgage Bankers. There are no warranties that the products and services discussed are offered by the companies.
The Net Branch represents the lender and/or borrower and performs the roles traditionally performed by loan officers, loan processors and/or loan originators. The Net Branch is generally not involved in the loan approval process. The Net Branch works with third-party processors, third-party loan originators and other direct marketers. The Net Branch uses its own business model, which differs significantly from traditional mortgage lending practices.
The NBB’s “Payment Distribution” structures rewards lenders based on pre-determined, pre-qualification, pre-approval, pre-sale and post-closing retail and wholesale rates. This structure provides NBB’s a competitive advantage over many third-party direct marketers and brokers. Some NBBs use a “Payment Distribution Network” (PDN) to bring lenders together for maximum savings. Many NBBs also provide incentives to underwriters to originate new business, including higher commissions.