AMP Opinion

If you are a mortgage broker it is very difficult to have a branch of loan originators. The compensation plan of April 1, 2011 limits the income your sales team is allowed to make. Mortgage bankers have more control over this since thier income is realized with what is considered "secondary marketing gains". Thus, this income can be used to pay a bonus to your sales team. Mortgage bankers also are allowed more control over the appraisal ordering process and can use their own AMC's. This is very important to those who realize that getting the wrong appraiser can kill your deal.

2011 is looking like its going to be a transition year for many of us in the mortgage industry. Are you prepared for 2012? Have you considered having your own mortgage branch? Would you like to be able to recruit loan originators and get paid for managing your own office? American Mortgage Partners has opportunities for those who want to build an office and get paid for more than just originating loans. We are looking for those of you who are use to managing people.

Small mortgage bankers are you feeling the pain of trying to turn a profit and maintain your office staff? If you are currently funding $3-5M per month operating as a mortgage banker I can guarantee there is a better solution. The California Mortgage Cooperative is a centralized mortgage banking platform where numerous bankers share one platform. If you could outsource all of your labor to one centralized platform and "pay as you go" would that make you profitable?

With net worth requirements continuing to increase in the mortgage banker world, many current mortgage brokers or smaller mortgage bankers are being pressured to find additional capital in order to continue to operate. The cooperative idea is one where a centralized mortgage platform is shared by many individual companies with the idea of saving money by not having to duplicate infrastructure, but also not having to deal with the net worth of their individual companies.

Private Mortgage Insurance companies are getting back to the insuring of mortgage loans. Many have reduced their premium and have expanded their mortgage insurance coverage so that they will now insure 97% of the total sales price of the home. Though the credit qualifying is tough, with a minimum credit score of 720 and maximum debt to income ratio of 41%, It is still an alternative to FHA financing.  If a borrower pays a 1% charge at close of escrow their annual MI is 0.61%. This is 0.54 less expensive than FHA loans.