Image via WikipediaThe company that gives the franchise is called the mortgage originator, while the company that takes the franchise is called the mortgage net branch.
Mortgage net branches may be small companies in their own right, or they may be mortgage brokers.
The mortgage professionals wishing to become a net branch must be licensed.
Most mortgage originators want their net branches to have at least three years of prior experience in the field of originating, processing, undertaking and
risk analysis of all types of mortgages.
Apart from these, other factors like having premises, goodwill in the market and superior communication skills are also desired.
The process is totally formal and documented, as the prospective net branch has to fill application forms.
This is possible, as the originators are big companies that are already functional on a countrywide basis.
Hence, mortgage net branching is a mutually benefiting symbiotic relation between the originator and the net branch.
Parties opting to become net branches are more often than not obliged to give up their original identities and take up new ones as desired by the
originators.
Also, the net branch does not have total liberty to undertake its tasks, as it has to work under orders issued by the originator.
Net branching is considered by new entrants in the field wishing to cash in on the goodwill of the originating company.
Clients are only too happy to deal with branches of esteemed companies in their vicinities.
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