How does your Branch Program work?
- Each branch is established as a branch of Christensen Financial, Inc.
- Each branch manager gets paid based on the profit he/she generates within the branch. The branch manager receives 100% of the profit after all bills, including corporate branch fees are paid.
- Many lenders and individuals have misused the Branch concept. Some companies set up branches without branch licenses, pay people as a 1099 contractor, and/or create non-company owned bank accounts. These are all illegal practices.
This concept allows branches to get similar benefits to a franchise, even though it is not a franchise.
How do I benefit from having a Christensen Financial Net branch?
- There are at least 40 benefits to being a Christensen Financial Branch Manager.
- YOU will have access to well over 250+ lenders with no Marked Up Rate sheets.
- YOU will have access to FHA, Reverse Mortgages, VA and Rural Development loan programs. Government loans require an ever increasing minimum net worth requirement, costly yearly audited financial statements, bonding and insurance requirements as well as compliance.
- YOU will have access to the highest YSPs in the industry through our Best Rates and other online pricing search engines.
- YOU will benefit from having a professional human resource department on staff.
- YOU will be eligible for pricing benefits of a larger company you cannot negotiate yourself.
- YOU will have resources people at the home office who can add mortgage lenders for you without having to drown in paperwork.
- YOU will have access to A-D conventional loans and niche products.
- YOU will have a complete Compliance Department available to insure all of your loans are compliant with state and federal regulations.
Can I keep my business name?
- We understand that as a mortgage professional, you have built up a strong reputation among past clients and referral sources using your business name. We can allow your branch to operate as a DBA with your current name, but you will be originating the mortgage as Christensen Financial in YOUR DBA NAME OR CHRISTENSEN FINANCIAL, INC. Furthermore, your current corporation must become inactive, and no applications or loans may be originated from that corporation.
How Do I get started?
- You start by filling out the Branch Manager Package and returning it to Christensen Financial.
- The company will begin the background investigation (see #14 requirements for branch approval) by obtaining credit reports on the branch manager applicant, driver license investigation, criminal background investigation, MARI report investigation and by calling references.
- This procedure takes 24 hours. You will then be charged the appropriate branch and licensing fees ($325.00 Florida). After you are approved as a Branch Manager, Christensen Financial will then send you a “Welcome Package” along with a full HR package, sub-lease agreements and proof of liability insurance.
- Christensen Financial, Inc. will then apply for your branch license for the state(s) designated on the application, FHA and VA (as desired).
How Do I get paid?
- You are paid through a payroll.
- Net profit, commissions and bonuses are paid through regular payroll as salary.
- Payroll cutoff is 10th and paid on the 15th and cutoff is 25th and paid on the 30th of each month.
- All managers MUST be paid by W-2.
- Any money given to the company to pay for the initial license and background investigations can be reimbursed up to that amount when money is available in your branch account.
- You MUST document the exact amount paid. You can be reimbursed for client’s meals and other legitimate business expense but you MUST have receipts as back up documentation per IRS regulations.
Sub-Lease Agreements
- Christensen Financial and the Branch Manager have signed sub-lease agreements for Office Space and for Equipment and Furniture. In these two sub-leases, the Branch Manager, third party or direct landlord will sub-lease equipment and office space on a month-to-month basis to the company.
- These are all signed on Christensen Financial lease agreements. • The company will pay fair rental value on these leases.
- This check can be paid directly to the main leaser or to the Branch Manager directly (if you are sub-leasing the space to Christensen Financial).
- If the Branch Manager leases the property at a higher value than main lease payment, then the money should be paid directly to the Branch Manager.
- The equipment lease should include all furniture and equipment in the office.
How is payroll handled?
- All pay must be made as W/2 wages through payroll and is processed through Paychex. Payroll is processed on a bi-weekly schedule. Any and all matching taxes and insurance is paid from branch profits.
What are the costs to become a branch?
- The branch manager gets to keep 100% of the profit from the branch after paying Christensen Financial the monthly branch fee. Branch fees are earned and charged to your branch on the first of the month. The branch is responsible for all the cost associated with the branch like rent, payroll, credit reports, appraisals, etc. The branch must also get a liability policy and forward it to Christensen Financial. Other costs are the yearly renewal fees for licenses and the branches FHA approval.
What are the Start-up Costs?
- Licensing fees for your state and each additional state you want to be licensed in • FHA/VA license fees (if you require them)
- Call your recruiter for more information.
How long does it take to be approved?
- Branch approval takes up to 24 hours.
When do I begin to pay?
- You begin to pay after you are approved with Christensen Financial.
How long does it take to begin originating loans?
- You can begin originating loans through Christensen Financial immediately after you are approved with us. Until your branch is property licensed, all applications must be taken from Christensen Financial’s corporate address, which should be listed on the 1003.
What are the requirements of a branch manager?
We have minimum standards for Branch Managers. The following are the items the company investigates to determine eligibility of a potential Branch Manager:
- 2 years minimum of provable experience in mortgage origination, underwriting and/or processing.
- Reserves contribution up front.
- General liability insurance
- Good credit history as listed on a tri-merge credit report for the manager
- YOU will have access to well over 250+ lenders with no Marked Up Rate sheets.
- No felony convictions that prohibit licensing by a state or is related to misuse of money in any way (we may consider an old drug conviction or the like on a case by case basis)
- Applicant cannot ever be listed on HUD’s Limited Denial of Participation list (LDP) or the GSA Debarment List
- Has a good general knowledge of the mortgage business as verified by references.
- You must NOT be listed on the Mortgage Asset Research Institute (MARI) report with a violation of any state law or regulation or a violation related to fraud or material omission of documentation on any loan. Christensen Financial has a strict ZERO tolerance for fraud policy.
Can I add personnel?
- Yes you can recruit new employees as a Branch Manager. With a click of the button, all employee sign up forms and applications are emailed to the recruit. Your branch will be responsible for paying for all branch employees out of the branch’s corporate account. All Christensen Financial personnel are W-2 employees. There are NO 1099 contractors. After you become a branch manager, procedures will be forwarded to you regarding setting up employees.
Can I sign a lease or contract for the company?
- You cannot sign on any document for the company except to sell and/or lock the mortgage loans originated within your office. You cannot sign any leases, contracts, loans, or place a utility in the name of the company. After you are approved, more details regarding this matter will be forthcoming in the branch manual.
Can I have more than one branch?
- You can have more than one branch, but you will have to pay extra fees for the other branches based on the compensation program stated in your contract. These fees include, but are not limited to, FHA licensing fees, insurance costs, state license fees and branch fees to the company.
Who is responsible for processing?
- You can process your loans in your branch with your personnel, or you can choose to use our in-house corporate processors for a $300 per file fee. We will allow you to use a contract processor or processing company as long as they are on our approved list. Christensen Financial performs a pre-closing Quality Control Audit on each file ($195 per file QC fee).
Who determines the fees charged on the Good Faith/HUD1?
- You do! You as the Branch Manager determine all fees on the Good Faith/HUD1. Christensen Financial does not add fees to your Good Faith/HUD1.
Does Christensen Financial change the lender’s rates to make the company more income?
- No. Christensen Financial does not change the rates you receive or pad our Rate Sheets in any way. You will receive rates directly from the lenders, and all compensation (including YSP and SRP) is disclosed on the HUD. Our goal is to provide you access to the industry’s highest paying YSP’s on every product.
What are Net Profits?
- Net profits are the dollars left over at the end of each month after paying ALL branch expenses including, but not limited to, rent, phones, utilities, credit bureau charges, DU/LP charges, equipment costs, operating expenses, salaries, commission and payroll taxes, licensing fees and branch fees.
Can I get paid as a 1099 employee?
- NO. The IRS prohibits this practice even though state licensing laws may allow it. The IRS has issued a memorandum that covers this fact.
