Frequently Asked Questions About
"Lend Anywhere" --
Mortgage Net Branch Alternative
1(a) Are there any special requirements in order to be approved?
Yes. In addition to paying the required application fee, you must be currently licensed in your home state as a broker or lender and in good standing with your state's real estate/mortgage regulatory agency.
1(b). Does a licensed "loan officer" or "sales agent" satisfy the previously mentioned license requirement?
No. As a general rule of thumb: If the license you possess would not legally allow you to open your own brokerage in your home state, you do not have the license required for approval into this program.
1(c). What about states that do not require licenses for residential lending?
Mortgage brokers in states that do not have license requirements may be approved, and are requested to provide a copy of any related business licenses, if applicable.
1(d). What if I am currently licensed as a net branch with someone else
- am I able to do loans on my own in my home state, but do not have a broker's license?
Once again, you must hold a broker's license or equivalent in your home state in order to be approved. Only in states where you are not required to have a broker's license to practice may you be approved without having a broker's license.
1(e). What about agents that work for me and have licenses inferior to that of a broker's license?
They may use the program under your supervision once you are approved.
They must possess the basic requirements of your state
to function as a loan officer within your state.
In other words, if you home state requires that loan
officers be licensed to conduct loan business within
your home state, they must have at least that license.
2. When I find a new client in another state, can I represent myself as the broker?
No. You are not the broker. You must refer the client to the
credit union as the credit union is the broker. In exchange for your referral, you or your company will be hired as the contract processor for the transaction. All paperwork, including all proper disclosures, are to be generated in the name of the company since the client is now theirs via your referral.
3. How long after I complete the application will it be before I can refer clients to the
credit union?
Once you complete the order form, you will be able to download the application. The application must be completed and returned to the specified address. From the day that the application is received, it takes approximately
two to three weeks to be approved.
3(a). Can I make a formal request to accelerate the approval process, or pay a rush fee to get approved faster?
No.
3(b). How will I be informed that I am approved?
Upon approval, you will receive an approval email explaining what to do next. For example, you will need to establish your own user credit account so you may run credit reports through the
credit union's software system. This, along with other procedural details will be provided. Naturally, this means that it is very important to include a proper email address for all key contacts from your company on the initial application.
4(a). Can my application with the credit
union be denied?
Yes. You must meet the requirements discussed on
this page as well as any requirements set forth by the
application or the credit union. A denial will result
in a full and immediate refund of the application fee
and a return of the software setup fee. The application fee is the only fee billed up until the point you are approved.
The broker certification fee of $55.00 is
non-refundable.
4(b). What
are the factors that determine whether or not I am
approved?
The
following factors all play a role in determining whether
or not your application is approved:
At Least 2
Years Experience
Working out of an Commerical Office (No Home Offices)
Must be a Licensed Broker
Have Average Credit
Decent Loan Volume (5 Loans Expected Per Quarter)
Good Criminal Background Check
5. Can I be denied from doing loans in the future with the
credit union even if I'm initially approved?
Yes. You are required to follow the guidelines set fort by the
credit union. Misrepresenting yourself, committing any type of fraud, or not fulfilling your duties as
an associate of the credit union could result in your removal from the program. Removal from the program for failing to comply with the rules of the
credit union will result in a forfeiture of any and all application fees.
6. Will the credit union ever be approved in all 50 states?
At this time
the credit union is able to lend in all 50 states, and
territories, for conventional lending. The areas
where FHA loans are available is described below in
Question #10.
7. Am I considered a net branch?
No. After referring a client to the
credit union you will serve in the capacity as an
"associate" (a third-party service provider/processor). It is a violation of the
credit union's rules for you to represent yourself as a "net branch".
8. I have multiple branches. Does each branch require a separate application with the company?
No. Only one application is required for all branches, but all branches should be made to clearly understand their relationship and capacity as
associates for the credit union. Each branch must pay an additional $100.00 monthly fee for loan origination software licensing
and support.
9. Do I have any control over the fees being charged to clients?
Yes. You may charge any fees you wish as long as they fall within the lender's guidelines for that particular state.
(FHA loans are capped at one point, however)
10. Can I refer FHA or
VA loans to the company?
Yes.
The details are as follows:
a)
You, in your capacity of an advisor, will forward the loan to the credit union and complete
the necessary advisor agreement. You will also have the
client sign a form acknowledging that you are receiving
a fee at the closing.
b) The credit union will complete the loan in its
entirety, performing all processing including ordering
the appraisal, opening escrow, etc. You may
not process an FHA loan that has been forwarded to
Emery.
c) Your company will be paid up to 1.00 point at the close
for acting as an advisor. No
other fees will be deducted from this 1.00 point, and
the 1.00 point will be sent directly from the closing
agent. Note that this fee structure is different
from non-FHA loans (read below for more information).
d) The following states/territories are currently
available:
All states EXCEPT New York, North Carolina, and North Dakota
11. Are there restrictions in any of the states?
Most of the
available states have no restrictions, other than what
is commonly expected, with one notable exception. Texas has the most obvious restrictions:
In Texas, you will only
be allowed to write up to an 80% first trust deed with
no cash out (no second trust deeds).
12. What tax documentation will I receive at the end of the year?
You will receive a 1099 form, even if you are a corporation.
Additionally, you must be prepared to enroll using an
EIN, and not your SSN for tax purposes.
13. What are the main differences between the way I do business now versus how I will conduct business with the
credit union?
When doing business in the states where you are currently licensed, nothing changes. If you refer an out of state loan to the
credit union, the following changes take place:
a) Applications must be taken in the name of the company using the
credit union's address and
a toll-free, dedicated phone number
that answers in the credit union's name. (You must
acquire this for your office.)
b) The client's information must be entered into the Encompass
loan origination software
c) Credit must be run from said system, using the credit union's choice of credit report provider
14.
Am I required to do all of the processing?
No - you may
opt to have our processing department process the file
for an additional fee. Sometimes this is actually
mandatory, depending on the lender. In the case of
FHA loans, it is always mandatory that our processing
department process the files.
15. Are there minimum production requirements or quotas?
Yes. The
credit union expects at least
5 loans per quarter from its associates
by the second quarter of operation. The quota is
not strictly enforced, but should serve as a guide to
production expectations.
16. Once I am approved, how will I know what to do?
You will receive an email indicating you have been
approved. The credit union conducts a training session
as a webinar for all newly accepted participants in the program. The
webinar is designed to provide more detailed instructions not previously discussed on the website or application forms. Other details will be provided as indicated in question/answer 3(b).
17. I already have Encompass®; can I be exempt from paying the $250.00 Software Setup Fee?
No. The current licensing agreement in place and setup tasks require that all new associates pay the $250.00 software setup fee, even if you already have already purchased Encompass® for your own office.
18. How will I be paid?
If you are in California, your check will be sent to you overnight and you will be charged $9.00. Outside of California your check will be sent via UPS and you will be charged $17.50. If you bank at Bank of America, the company can, by request, deposit your check on the same day for $25.00, which is a bank courier fee. Charges are deducted directly from the fees earned. Before the
credit union issues you your check, you must send the
credit union
(via fax, or scanned upload only) a complete copy package of the recently processed loan.
Additionally, the
credit union requires payment to be made to a "company named, federal ID numbered entity." Individuals must be able to provide a federal tax identification number (TIN) in order to be eligible to receive payment. To acquire a federal tax identification number, you may instantly apply online directly through the IRS by clicking HERE.
19. How long does it take for me to be paid?
Once the
credit union has received the check from escrow and the required copy package in stack order from you, your check is written and sent via overnight delivery usually within one to two business days.
20.
Am I required to disclose YSP/rebates to the client?
Yes.
21.
Are you adding more lenders at this time, and can I
request that a lender be added?
Yes, more
lenders are currently being added. Once
you are approved, you may request that a lender be added
to the list. The credit union is only interested in
adding lenders that offer something distinctively
superior to what the current lenders are able to
offer.
22.
Can I refer any files to the credit union while my associate
application package is submitted and
awaiting approval?
No.
23.
What happens after I pay the initial application fee on
this website?
You will be
provided with a receipt on the screen, and in email.
The receipt has a clickable button / hyperlink that will
download the primary application in PDF format (requires
free Adobe Acrobat Reader). The application will
load and should subsequently be printed. The hard
copy application must be completed and signed.
Instructions are provided where to send the application.
Some additional documentation will be requested, such as
a professional resume, an unaudited P&L for the past six
months, a balance sheet, broker's license, etc.
24.
How long has the credit union been in business?
Since 1939 -
and it is federally chartered.
25. How is my processing fee calculated?
Fees are based upon the gross amount of all charges (including rebates/YSP) collected by the
credit union from the escrow/title company - or attorney in some states. For example, if all fees charged (and rebates/YSP) resulted in a check of $3,674.55 being paid to the
credit union, the credit union would deduct $500.00,
and the mailing cost (usually $17.50), and pay you your processing fee of $3,157.05. The distribution of fees that produced the original total of $3,674.55 is not relevant. For example, it does not matter whether or not $3,000.00 of the total amount was labeled "underwriting" and the remaining $674.55 was labeled "administration" on the closing statement. For the purpose of calculating your processing fee, only the gross amount received by the
credit union is used.
In another example, if the gross amount of fees received by the company is $8,970.00, the
credit union would deduct $897.00 (which is 10%; greater than $500.00), and the mailing cost (usually $17.50) resulting in a final processing fee of $8,055.50 to you.
26. What is the complete fee schedule?
Start-up Fees:
$295.00 Application Fee (paid online here, on this website)
$250.00 Software Setup Fee for Encompass® (paid via check - sent in with the application)
$55.00 Broker Certification Fee Performed by Credco (non-refundable)
Maintenance Fees:
$100.00 Monthly for Software Licensing
& Customer Service (billed as $300/quarter)
Per-Loan Fees:
$500.00 or 10% of Total Fees Collected, Whichever is Greater
$17.50 overnight delivery or
$9.00 Shipping Fee in California
Piggy-Back Seconds:
$350.00 If Concurrently Closed With Same Lender As First
TD, Else $500.00
Processing:
$695
Processing Fee - The credit union requires that most
lenders be processed by them, not the associate.
These files will incur an additional processing fee.
In addition to the standard processing expected, processor will
order title and appraisal, open escrow if needed,
collect all PTD and PTF conditions (and contact borrower
directly), lock the loan, and prepare the final copy
package in the correct stack order.
27.
Are the
rates that the lenders provide off-the-sheet or have
they been marked up?
The rates are derived from the standard
broker sheet available to any licensed broker without
being marked up by the credit union.
SECURE & CONFIDENTIAL
CLICK BUTTON FOR SECURE REGISTRATION
Email:
(You must type in the email address into your mail
client)
Questions? - Toll Free (877) 826-2958
Ideal Financial, Inc.
6117 Reseda Blvd. #212
Tarzana, California 91335
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