In my work speaking to prospective branch managers I hear this statement every day.

My answer / question is always the same. Are you sure?

I then ask several important questions.

• Have you researched the licensing requirements for loan officers and branch offices in the states where you are interested in originating?
• Are you aware that many states require licensing fees for a branch office to originate in their state?
• Are you aware that many states also requires fees for loan officers to originate in their state?
• Do you know that many states also require some type of continuing education in order to originate in their state?
• Do you know that some states require a physical location to originate in their state.
• Are you aware that some states like North Carolina require each loan officer to be licensed and that the education and test must be taken in person?
• Are you aware of the state specific compliance requirements for the states you where want to originate.

Some people thinking about opening a branch office of a national company think that they can originate in every state where the company is active without any additional time, effort, licensing or money. Unfortunately that is not true.

An “out of state” originator interested in developing business in Florida, California, Maryland, North Carolina, South Carolina, Ohio and many other states has to comply with each states licensing, education, disclosure and compliance requirements. Usually it does not work as intended.

Don’t misunderstand me, there are situations where you should work in more than one state.

• If you are in a border city like Kansas City, Missouri – you should also be licensed in Kansas.
• If you already have branches setup in more than one state – you should continue when you change companies.
• If you have established referral sources in other states – you should consider the investment of time and money to capitalize on those relationships.
• If you have an established office, you want to expand into another area and are prepared financially – that is a sound business decision.

The main point I am trying to make is that more or bigger is not alway better. Most offices “find” the majority of their business within 25 – 40 miles of their location.

Another related statement I hear is that there are other companies that allow me to originate in all states with out going through the licensing and education requirements.

I will try to address that topic in another post.

I always appreciate subscribers and welcome comments and questions.

For more mortgage net branch information visit: NetOriginator.com