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Edward James Ferrara III spent 8 years (2001-2008) brokering and banking home loans in Orange County, CA to the tune of some 500 million dollars in mortgages funded by May of 2008, when he founded the rate research website FreeRateUpdate.com, now a unique authority on mortgage rates. Ed recently married and became a first time father (Edward James Ferrara IV). Ed also contributes to RealtyTimes.com (syndicated on Yahoo Real Estate). To contact Ed, email him or call (714) 694-5914.

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States Cracking Down on Mortgage “Net Branches”

If you’re “net branching” with a company that plays in the grey area with some of HUD’s regulations, now may be the time to make a change.

Net branching peaked during the boom, and for the most part crashed with the meltdown, but it has survived. While the term “net branch” is on its way out, branches will always be around. Branches are valuable to mortgage lenders because branch managers use their own money to secure office space, pay for marketing, processing, employees, computers, and phones etc. With the help of the lenders’ resources and support, branch managers operate as a banker/broker, in charge of everything doing business…………. STATES CRACKING DOWN ON MORTGAGE “NET BRANCHES” FULL STORY


There Are 2 Responses So Far. »

  1. Like it or not, net branch is the term that is here to stay.

    Try a Google search for words around it and see what you get. Poor results.

    It’s not the term, it’s the people who have abused the industry for a quick dollar.

    There are a lot of reputable companies that offer a net branch solution.

    Most people do not know what the term really means.

    The branch manager’s compensation is based on the profitability (net profits) of the branch.

    A company does not have to be a “Net Branch” to let loan officers manipulate addresses on a 1003, or to use a shady method of compensation.

    And a company’s professionalism has no link to the use of the term.

    A crook by any name is still a crook!

  2. that’s garbage…net branching is a way for top producing loan officers to run their own company within a company. its no different than a starbucks or meconalds franchise.

    net branchs are licensed as a branch and are in compliance with all regs….just paid higher commission’s.

    net branch’s that are licnesed are not committing fraud.

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