The application to become a an approved Fannie Mae Seller/Servicer is a lengthy and arduous process. And while a lender stands to reap all of the benefits of this approval, a mortgage branch is better off partnering with a lender who is already approved. In most cases, a branch will only benefit from the fast closings and the direct pricing that result from this approval.
Approved Fannie Mae seller/servicer can leverage many of the institution’s resources, access to a variety of FNMA products, technology like desktop underwriter and desktop originator, capital markets, and dedicated support. But the only benefits that can trickle down to branch partners are fast approval of loans and direct pricing. However, given the many requirements needed to get this approval, a lender, and not the branch, is better positioned to generate a positive return on investment; speciality when we are talking about branches that specialize in loan origination. For example, access to the institution's capital markets greatly enhances a lender’s liquidity, but does nothing for a loan originator.
Of course, a loan originator could apply to become a direct seller, but aside from the long approval wait, the costs of lining up and keeping the requirements in place may be prohibitive. When partnering with Fannie Mae lenders, branches don’t need a minimum of 2.5 million net worth, internal audit and management control systems, nor manuals and processes that establish how to mitigate losses or deal with third party service providers. Furthermore, they are spared the requirements of having a fidelity bond, and the establishment of errors and omission policies.1 Yet, as mentioned before, they can benefit from their ability to deliver fast closings and direct FNMA pricing. Clearly, a mortgage branch need not go through the application process nor align all of the requirements to be approved. In fact, for a mortgage branch alone, the costs would outweigh the benefits.
Given the many requirements needed to be approved, a practical branch will quickly recognize that leveraging Fannie Mae’s resources through a lender is a better alternative than it going all the way.
As a direct Fannie Mae approved lender, our branch partners benefit from fast closings and direct FNMA pricing. If you were looking for a net branch opportunities, our mortgage branch opportunities are a better alternative. Please, visit our website to learn how branches benefit from partnering with us.
As the Mortgage Branch Leader we want to partner with seasoned mortgage professionals who want to open a mortgage branch. Out mortgage branch opportunities are a better alternative to the net branch opportunities out there. As a branch partner, and contrary to a mortgage net branch, working with a direct agent, full eagle lender, you’ll get competitive pricing, full product portfolio, and other benefits. Best of all, we are team oriented company that recognizes that your success is a requirement for the sustainability of our business. Please visit our website to learn more