A new initiative will provide individual loan originators with $10,000 to help them start up their own new mortgage brokerage firm.
The KickStart program has been launched to grow the broker channel, the National Association of Mortgage Brokers announced Friday.
According to NAMB, which also operates as the
Association of Mortgage Professionals, the KickStart program will begin immediately.
Funds from the grants, which require no repayment, are intended to help with startup costs like office space and mortgage technology.
NAMB said that 70 percent of around 200 U.S. loan originators
it surveyed expressed interest in owning their own shop.
That same survey said that capital was the biggest obstacle to opening their own business — though 60 percent indicated they’d be more inclined to move forward if given seed money.
“KickStart is targeting loan originators in banks or branch networks who have experience in the residential mortgage industry and demonstrate a potential aptitude to successfully own and operate an independent mortgage brokerage firm,” the trade group stated. “These individuals should embody an entrepreneurial spirit and have experience as a mortgage loan officer.”
In order to qualify for the grant, applicants need a minimum of three years’ experience in the mortgage industry.
In addition, they need to provide a description of the company, mortgage production goals and the anticipated operational structure.
The
initiative was funded through a $500,000 grant from United Shore Financial Services LLC’s wholesale lending subsidiary, United Wholesale Mortgage.
“The KickStart program is about strengthening the mortgage broker channel as a whole because it’s the best way for consumers to get a loan,” United Wholesale Mortgage President and Chief Executive Officer Mat Ishbia stated in the news release. “Wholesale currently makes up 12 percent of market share — the goal is to double that, at the least.”
Ishbia called on his company’s wholesale competitors to
join in the initiative.
A KickStart review committee comprised of two NAMB representatives, two independent mortgage brokers and a United Wholesale representative will review and approve the grants.
Interested applicants can learn more at
www.nambkickstart.com.
