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Mortgage Net Branch Massachusetts
Are there any fees associated with mortgage net branches in Massachusetts?
That varies between states and in some instances may vary between mortgage companies and MA net branch operations themselves. For example, some states may not allow a mortgage company to require their net branches to pay anything—no loan fees, no start-up costs, no expenses, nothing.
Other states may allow mortgage companies to charge their mortgage net branches certain fees or require them to pay utilities, rent, or other operating expenses. When this is the case, the money required to meet these payments may be deducted from the net branch's profits which were earned by generating loan originations before a deposit is made into the branch's or branch manager's bank account.
Even if a state does requires that net branches essentially operate "free of charge"; that is, the larger mortgage company with which they are affiliated pays everything, the state may charge license fees for mortgage brokers. You must be a licensed mortgage broker to operate a mortgage net branch. In Massachusetts, this fee is $1115 at the time of this articles writing.
In addition, Massachusetts requires that a mortgage broker show a net worth of $25,000, as evidenced by the information taken from an audited financial statement, as well as post a $75,000 surety bond. However, Massachusetts does not require that a mortgage broker have a "brick and mortar" office (sometimes referred to as a physical location) anywhere within the state before the broker can generate loan originations - which are the primary purpose of having a mortgage net branch in MA - or conduct other business as a mortgage broker.
This makes it fairly easy to operate a mortgage net branch in Massachusetts. If you're interested in doing this, now you have the information on what state expenses you can expect to pay.