May 16, 2021

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Mortgage News

Why this originator decided to open up a mortgage franchise

Michael Tubin (picture) is a born entrepreneur. The Boston resident Mortgage professional has been in the industry since 2003 while also running a range of sideline jobs and businesses just to keep busy. He’s run office cleaning businesses, owned storefronts in Boston’s Faneuil Hall, ran an event planning firm, and owned a fleet of Boston Pedicabs while selling mortgages. Now, having spent one of his best years as an author at Fairway Independent, he’s setting a new course in a slightly new way. On Friday he will be opening a new mortgage franchise called Mortgage.

Tubin explained that Motto’s franchise model appealed to him the most when he was considering ways to start his own business as a mortgage professional. With a “mortgage broker in a box” he could offer his customers the choice and flexibility of a broker without having to navigate a compliance minefield himself. He explained exactly how and why he chose the franchise model, and gave advice to other creators who should go down the same route.

“The mortgage business is a tough business. I’m saying I started a business myself,” said Tubin. “Motto made it so much easier to have this mortgage broker in a box… They use cutting edge software and are constantly reviewing what they can do to help their franchisees. There is someone there to answer your questions. If I was alone I would do my own IT and try to integrate all of this software. That just made sense to me. “

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Tubin noted that sleek marketing mottos and relatively widespread brand awareness also influenced his decision to join a franchise. Their social mission also played a role. Tubin serves on the board of directors of his local Homelessness Ending Task Force, and Motto’s commitment to an anti-hunger mission appealed to his sense of responsibility.

After working with Fairway for years before making that jump, Tubin wanted the advantages of a broker, but with a little more support and safety net that comes with a franchise. Motto is now the only option for him.

When he reached out to Motto, Tubin was assigned a franchise development consultant who put him through an application process that took about 3.5 months, including obtaining a broker license. For someone who has been busy since he was 15, Tubin struggled to take 3.5 months off while this was in progress, but said he used the time to learn about some of a franchisee’s new roles.

The primary responsibility he takes on beyond his work on issuing and taking out loans is regulatory compliance. As a broker, he must ensure that every loan he makes is compliant and follows the rules for qualifying mortgages. He must prepare for intermittent audits, submit call reports to the national NMLS, and ensure that all of his loans are properly closed. These are issues that, as an originator in retail, he would never have to worry about.

However, the excitement of being a broker and regularly saying yes to customers was enough to convince Tubin to follow the franchisee’s path. He was already able to come up with solutions for borrowers with credit scores in their low 500s, which he could never do under a retail lender.

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While the originators ponder their next steps after a year of record profits, Tubin believes that the appeal of a franchise model like Motto’s effectively sells itself.

“The whole” mortgage broker in a box “concept really breaks it down right there,” he said. “If I were alone, it might have taken me two or three years to get to where I am now. If you want to take the first step in starting your own business, they have product support, they have lending software, and they’ve planned everything but the business cards. ”