FAQs - Independently Managed Branch

May I create my own website?

MortgageStar has spent considerable time and resources developing a brand image. Allowing loan officers and branches to use our name in their own version of a website would simply not work.

Instead, we offer to customize, maintain and host our official website to you for only $250 per year. MortgageStar subscribes to Internet services which track unauthorized use of our name to protect our brand.

May I advertise?

Absolutely, using our pre-designed ad slicks and marketing materials-you'll look good!

What is a Independently Managed Branch?

An independently managed branch is simply an experienced loan originator or processor who wants the freedom to work from home and control their own financial future, without the risks associated with being self-employed. As an employee of MortgageStar, you have the ability to originate, process and submit loans to any of our approved investors. In return, you earn the entire broker fee and yield spread premium, minus a small fee of only $500 per loan.

What products do you offer?

Everything that our investors offer! That's right-we can get approval from all of the investors in the marketplace, so if you have an investor you want to deal with, simply have them overnight us a broker approval package and we will get signed up with them as soon as possible!

What are the initial start-up fees and/or costs to start with MortgageStar as an Independently Managed Branch?

The only up-front fees/costs you are required to pay, in most states, are your branch license fees for the states in which you want to originate loans (if applicable) and the website fee. Refer to the table under Independently Managed Branch Program Highlights to determine the cost of licensing in each state.

May I have a "Brick & Mortar" Independently Managed Branch?

Yes!

May I print my own business cards and marketing materials?

No. In order to maintain a uniform brand image, it is important that all of the marketing materials, including business cards come from us. We are not in the business of selling marketing materials but, we will provide these materials at our cost.

What is the per loan fee?

MortgageStar has a per loan fee of $500 for each loan you close, regardless of the loan amount. The fee applies to all piggy-back loans as well.

How much do business cards cost?

The cost is $40 for 500 cards. Make sure you complete the business card order form in your package so that we may get your cards to you as soon as possible.

Does MortgageStar provide technical assistance?

You bet we do! MortgageStar has its own Management Information Systems Department to assist you with logging in and navigating our website as well as any other computer-related support you need, all at no additional cost to you.

If I am doing the processing then why does MortgageStar employ so many underwriters?

MortgageStar believes in support. If you need help with investors or need help making sense of their product matrices, just call our underwriters. We have a Sub-Prime Specialist, a Conventional Underwriter, a FHA/VA Underwriter and a Broker Relationship Manager. Their services are available to you at no additional cost. Remember that if you choose MortgageStar as your lender, we will process your loan file for free and the $500 loan fee is waived.

Why does MortgageStar have a Settlement Company?

Often a loan is ready to close but the title has some outstanding issues. In Maryland, Virginia, Washington, DC, Pennsylvania (NC & UT coming soon) we will order the title (it takes 24 hours) and send an experienced loan closer to your borrower's home to close the loan. In other states, where we are unable to provide this service due to statutory reasons, we have prearranged partnerships that you may use.

Will I be a W-2 Employee or 1099?

In order to use MortgageStar's branch licenses, you must be a W-2 employee.

What is the employers' match/payroll administrative fee?

If you were self-employed you would be responsible for paying the following: FICA, Medicare, and both Federal and State Unemployment Insurance. The rate that self-employed individuals pay is approximately 16% of his/her gross wages. Since you are receiving all of the Net Profit as if you were self-employed, the fee you will pay is 8.0% of your gross commission after any costs incurred, with the employer matching the additional 8.0%. This cost is commonly known as the "Employer Payroll Tax Contribution."

When will I receive my check?

Payroll is distributed on the 15th and 30th of each month. All loans in which MortgageStar receives a broker check and the completed compliance disclosures by the cutoff date.

May I do business in other states? Do I need a license?

You need a branch license or regulatory approval for most states in which you wish to originate loans; see the table for the licensing fees for each particular state. In states such as IN, MN, SC and CO, you may do business without an extra fee. Georgia does not require an out-of-state branch to be licensed, but does require all in-state branches to be licensed.

Is there a monthly quota or minimum?

No. Unlike other branch operations, MortgageStar does not require a minimum number of loans each month. However, there is a corporate overhead fee of $500 each month, due on the last day of the monthly pay period, regardless of whether or not you are active. If you fund five or more loans per month, then the monthly corporate overhead fee is waived.

Do I receive the wholesale price from your investors or do you mark up their price?

You receive the net wholesale price without any markup! You may actually view and print the rate sheets from our approved investors. The only money MortgageStar makes from the loan is the $500 per loan fee.

Am I an exclusive employee of MortgageStar?

Yes. Every loan you originate must be registered with MortgageStar as the broker of record. You may not work or originate loans for any other company or individual except MortgageStar.

How do I find which investors MortgageStar is approved with?

You may review our approved investor list under independently managed branch program highlights. We list all of our approved investors by category. Their contact numbers, rate sheets and submission forms are also available online.

What address goes on the 1003 application?

You will use your licensed branch address on the 1003 application.

Do I get paid on volume-type bonuses?

No. All other types of bonuses paid from an investor belong to MortgageStar. You, the loan officer, are entitled to the broker fee, the allowable processing fee, and the yield spread premium (if applicable).

May I contact the investor directly?

Absolutely! You are responsible for clearing the loan stipulations to close the loan. Each investor's contact information is listed on our website.

Do I need special processing software?

We highly recommend that you use Point® from Calyx or Encompass.

Do I need a business phone line?

No. Since MortgageStar allows you to use its toll-free number with a designated extension, your customers and investors can reach you through our phone system or directly on your direct-dial number (cell phone).