Big Changes for Mortgage Net Branch Managers in 2010 – Part 1

The new year brings in big changes for mortgage net branch managers. 2010 will see some of most sweeping changes in our industry.

If you are consider joining a mortgage company that offers a net branch opportunity you should be considering these changes before you decide on which company to join.

Big Net Worth Change for Net Branch Mortgage Companies

One of the most important is the new net worth requirements set by HUD that will  begin this year. The old rule required a company to have an audited net worth of $250,000. The new rule initially bumps the net worth requirements to $1,000,000.  Estimates are that this change will eliminate close to 25% of the mortgage companies that hold a lenders license with HUD because the cannot meet the new requirement.

The big question is which companies will be gone. You should ask questions about the financial soundness of any company you are considering joining. What is their net worth? Can they meet the new HUD requirements?

To make this even tougher, the $1,000,000 net worth threshold is only the first step. With in 3 years the minimum  net worth required to be a HUD approved lender will be $2,500,000.   That is a 1000% increase over current requirements.

Estimates are that close to 70% of current HUD approved lenders will not be able to meet the final net worth requirement.

Changing mortgage companies is a big move for any branch office. It cost time and money to make a move.  Do your homework on a company before you decide.

I always welcome comments and subscribers!

If you would  like to know more about our net branch partner program visit our Frequently Asked Questions page.

Mortgage Net Branch Opportunity

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