Net branches are a structure that’s long been abandoned as a result of regulatory scrutiny. But one mortgage banking firm is making a go of it again with some huge incentives.
Before the financial crisis, the net branch model was a recruiting tool used by mortgage banking firms — many which are no longer around. The structure enabled mortgage brokers and originators to split branch profits with their employers.
In addition, the model allowed small brokerages to gain access to the mortgage banking process, more programs and corporate support through the national companies they were affiliated with.
Source: Mortgage Daily