Mortgage brokers are being courted by growing net branch companies that promise to reduce administration, increase resources and give immediate access to government programs. One branching firm is promoting modification services while a branch of another firm is offering stated-income programs.
Flagship Financial Group recently reported an increase in the number of mortgage brokers signing up for its turnkey solution. New branches receive education and approval needed to originate FHA and VA loans.
Flagship said it is licensed to originate government loans in 38 states.
"We handle the licensing and requirements so our branch partners can expand from a single state operation into a national company," said Will Farrar, founder and owner of Lehi, Utah-based Flagship. "They can fund more loans and have the flexibility to concentrate on the states with the most profitable real estate markets."
Guaranteed Home Mortgage Company Inc. has created a new survival package to entice struggling mortgage companies to join its branch network, an announcement last week said. The package includes assistance with compliance, marketing, accounting and processing. It also includes help with licensing issues, regulatory reports and a proprietary software system.
"Guaranteed's loan-origination program, Encompass, and lead-management system, LendingTree would cost an independent organization hundreds of thousands of dollars, but they are provided for free, with training, for Guaranteed affiliates," the announcement said.
A branch of Fairway Independent Mortgage Corp. is promoting stated-income loans with no income verification in Georgia, North Carolina, South Carolina, Tennessee and Virginia.
The Katz Mortgage Team out of Atlanta is offering self-employed and salaried borrowers stated-income loans for purchase and cashout transactions secured by primary residences and vacation homes, a press release last month said. The minimum down payment is 20 percent, the maximum cashout loan-to-value is 65 percent and assets must be verified.
Fairway reports that more than $1.5 billion was originated from 80 offices during 2007.
Envoy Mortgage announced last month a new office opened in Corpus Christi, Texas. The new branch is part of the Houston-based company's strategy to expand in healthy markets.
Envoy, which previously operated as First Houston, reportedly operates 34 offices and is licensed in 20 states.
US Mortgage recently announced the addition of branches in Cranford, N.J., and Virginia Beach, Va. The company says it is a direct-endorsed FHA/VA lender and an approved Fannie Mae seller/servicer.
MortgageDaily.com advertiser Mitigation Online Consultants is recruiting mortgage brokers and loan originators to sell modifications as a 1099 contractor. The loss mitigation branching company, which offers 100 percent money-back guarantees, said it has a 90 percent success rate on all of its cases.