Add
Mortgage Finance To Your Services
 |
For
real estate professionals only. |
| All American
is committed to fully incorporating
the advantages of a rapidly changing
mortgage market and advancing
technology for the benefit of
existing real estate businesses
by delivering its highly competitive
mortgage services to their agents’
customers through its unique franchise
program. |
|
One-stop
service capabilities. |
| Working
for real estate offices that also
own All American Finance franchisees,
agents can substantially enhance
their one-stop services by directly
offering mortgage-lending services
to their clients. And All American’s
simple, streamline franchise system
enables agents, for very little
addition effort, to substantially
increase their commission revenues.
In addition, the incremental costs
to the office to support mortgage
lending under All American’s
program are negligible. |
|
Easy
for agents. |
| The primary
responsibility of the agent is
simply to take the loan application.
This service can become a major
benefit for the agents because
it provides them with excellent
pre-qualifying information. In
addition, agents establish much
stronger bonds with clients, and
they may still generate mortgage
commissions even when customers
buy FSBOs. Other services beyond
the application must also be provided
to be RESPA compliant but these
are not unusual or time-consuming
services (see RESPA issues below).
Truly professional real estate
agents are already doing more
than required just to assure their
clients receive efficient service.
|
|
All
American does the heavy work.
. |
| Regardless
if your are working in a firm
with 1 agent or 100 agents your
firm can provide in-house lending
with all the advantages of larger
firms, but with none of the disadvantages.
All American provides wholesale
pricing, and once loan applications
have been submitted All American
Finance is responsible for all
loan processing, identification
of funding sources, loan approvals,
and loan management functions
for the real estate professionals.
|
|
Great
income booster. |
| Commissions
are set by the broker, as are
splits between the broker and
their agents. Agents earn 100%
of the mortgage origination and
rebate fees received for loans
closed. Loan commissions are paid
through escrow, the same as real
estate sales commissions. |
|
Training,
training and more training. |
| All American
provides high quality ongoing
training to franchisees, without
additional charge. Advancing technology
has brought the availability of
mortgage and real estate information
to a new plateau. Today, virtually
every client with a computer has
immediate access to enormous amounts
of current, comprehensive, in-depth
market information. All American
Finance’s training material
and programs will equip real estate
agents with the skills to provide
professional mortgage services,
and to keep up to pace with rapidly
advancing technology. |
|
|
Franchise
Fees |
·
Initial Franchise Fees:
The All American franchise fee
structure is designed to insure
that you receive real value
for your investment. The initial
Franchise Fee is $1,600
· Ongoing Franchise
Fee:
Unlike most other franchises,
there are no ongoing fees for
royalties with All American.
The low Initial Franchise Fee
is it - no other fees or costs.
Period !
|
|
Other
Investment Requirements |
You will
need to have a business office
equipped with standard office
equipment. For existing real estate
agencies, the facilities utilized
for real estate brokerage may
also be utilized for mortgage
brokerage therefore the incremental
costs necessary to accommodate
new All American business are
minimal. In addition, because
you are already operating a real
estate agency that produces cash
flow, you should have no need
for additional working capital
reserves in order to operate your
All American franchise.
If totally new offices must be
established to accomodate the
mortgage business, you will need
enough space for between one and
four brokers (500 - 1,000 square
feet). Your office should contain
a conference room or other private
area where confidential meets
can be held with potential borrowers.
If you be relying on the mortgage
business as your primary source
of income, you will need general
working capital to cover you personal
living expense requirements and
the monthly cost to operate your
new business.
|
|
In the determination
of whether payments to mortgage
brokers are permissible under
Section 8 of RESPA, the threshold
question is whether there were
goods or facilities actually
furnished or services actually
performed for the total compensation
paid to the mortgage broker.
In that HUD's letter to the
Independent Bankers Association
of America, dated February 14,
1995, HUD identified the following
services normally performed
in the origination of a loan:
|
 |
Taking
information from the borrower
and filling out the application |
 |
Analyzing the prospective
borrower's income and debt
and pre-qualifying the prospective
borrower to determine the
maximum mortgage that the
prospective borrower can
afford |
 |
Educating
the prospective borrower
in the home buying and financing
process, advising the borrower
about the different types
of loan products available,
and demonstrating how closing
costs and monthly payments
could vary under each product |
 |
Collecting financial information
(tax returns, bank statements)
and other related documents
that are part of the application
process |
 |
Initiating/ordering VOEs
(verifications of employment)
and VODs (verifications
of deposit) |
 |
Initiating/ordering requests
for mortgage and other loan
verifications |
 |
Initiating/ordering
appraisals |
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Initiating/ordering inspections
or engineering reports |
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Providing disclosures (truth
in lending, good faith estimate,
others) to the borrower |
 |
Assisting the borrower in
understanding and clearing
credit problems |
 |
Maintaining
regular contact with the
borrower, realtors, lender,
between application and
closing to appraise them
of the status of the application
and gather any additional
information as needed |
 |
Ordering legal documents |
 |
Determining whether the
property was located in
a flood zone or ordering
such service |
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Participating in the loan
closing |
|
HUD articulated
that it generally would be satisfied
that sufficient origination
work was performed to justify
compensation if it found that:
|
The
lender's agent or contractor
took the application information
(under item a.) |
|
The
lender's agent or contractor
performed at least five
additional items on the
list above. |
|
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