Is the net branch company you are with closing it’s doors?

Many Net Branch Companies will close their doors!

HUD has just release the final rules on the required net worth requirements for mortgageĀ  lenders to keep their HUD approval.

Net Branch Closed?If your net branch company is currently a HUD approved lender the new HUD rule will increase the minimum net worth by 4 times. The old net worth requirement was $250,000, the new one is $1,000,000 plus 1% of volume for mortgage lenders that generate over $25,000,000 per year (meaning all companies with production of over $2,000,000 a month).

Some estimates say that at least 25% of current lenders will not be able to meet the new net worth requirements.

If you ware currently with a net branch group or are considering joining one, you need to make sure that the company is financially able to stay in business.

Net Branch – FHA – HUD

I always welcome comments, questions, and subscribers!

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

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