Signing a net branch agreement is one of the most important decisions in a mortgage professional’s career. The right agreement sets you up for higher income and operational freedom. The wrong one can lock you into unfavorable terms, hidden fees, or restrictive clauses that limit your growth.
Here’s what experienced loan officers and branch managers should look for — and watch out for — before signing.
1. Compensation Structure and Transparency
The core of any net branch agreement is how you get paid. Look for:
- 100% commission model — you set your own margins and keep the revenue above platform costs
- Clearly itemized platform costs — technology fees, processing costs, compliance overhead should all be spelled out line by line
- No hidden fees — ask specifically about administrative fees, wire fees, document fees, and any per-file charges not listed in the agreement
- P&L access — you should have real-time visibility into your branch financials at all times
Red flag: If the platform can’t give you a clear, itemized breakdown of every cost before you sign, walk away.
2. Product Access and Lender Relationships
Your earning potential is directly tied to the products you can offer. Verify:
- Number of lender partners — Banker & Broker access to 200+ lenders gives you maximum flexibility
- Product range — conventional, FHA, VA, USDA, jumbo, DSCR, non-QM, bank statement, and commercial should all be available
- Pricing engine access — you should be able to price shop across all available lenders in real time
- No product restrictions — some platforms limit which lenders or products you can use
Red flag: Limited lender access or restrictions on which products you can originate.
3. Compliance and Licensing Support
Compliance is the backbone of any net branch operation. Your agreement should cover:
- Who holds the broker/lender license — in most net branch models, the platform holds it and you operate under their umbrella
- State licensing support — especially important if you originate in multiple states
- Continuing education — does the platform provide or subsidize CE requirements?
- Audit and regulatory responsibility — who handles audits, state examinations, and regulatory filings?
Red flag: Vague language about compliance responsibilities or any clause that shifts regulatory liability to you without giving you control.
4. Non-Compete and Termination Clauses
This is where many loan officers get caught. Read carefully:
- Non-compete scope — how long does it last? What geographic area? Does it prevent you from originating at all or just from soliciting the platform’s borrowers?
- Termination notice period — how much notice is required from either side?
- Pipeline handling — what happens to loans in your pipeline if you leave?
- Client ownership — who owns the borrower relationships you build?
Red flag: Broad non-competes that prevent you from working in the mortgage industry for 12+ months, or clauses that claim ownership of your client relationships.
5. Technology and Operations
Operational support directly impacts your production efficiency:
- Loan origination system (LOS) — which system, and what’s the cost?
- Processing support — is it available? In-house or outsourced? What’s the per-file cost?
- CRM and marketing tools — provided or bring your own?
- Virtual branch capability — can you operate remotely with full lending authority?
6. Onboarding Timeline
Time is money. A good net branch platform should get you originating quickly:
- Realistic onboarding timeline — as little as 7 days from agreement to first loan submission
- Background check turnaround — how long does the vetting process take?
- Technology setup — is it handled for you or self-service?
The Bottom Line
A net branch agreement should be transparent, fair, and designed to help you produce. If you’re reading an agreement that feels one-sided, overly restrictive, or vague about costs — keep looking.
The best platforms earn your partnership through value, not through legal lock-in.
Yes, especially if this is your first net branch. An attorney familiar with mortgage industry agreements can identify unfavorable terms you might miss. The cost of a legal review is small compared to the impact of signing a bad agreement.
Many net branch platforms have no non-compete at all, or a narrow one limited to soliciting the platform’s specific borrowers for 6-12 months. Broad non-competes that prevent you from originating entirely are a red flag.
This varies by agreement and is one of the most important clauses to review. Ideally, the relationships you build belong to you — your referral partners and clients follow your license, not the platform’s name.