Why become an independent broker owner?

Independent brokers are gaining in recognition and becoming more influential in the mortgage industry. If you’ve ever considered opening your own broker shop, now could be the right time. You’re already doing the work. It’s time to reap the benefits.

Get Started

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Growing Market Share.

It’s no coincidence that more broker shops are popping up across the country at the same time borrowers are demanding more choices in home loans. In fact, some industry insiders predict mortgage brokers will reach 20% of the market by 2020. Get started →

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Strong Industry Support.

As borrowers become increasingly aware of the advantages a mortgage broker brings, industry support has also risen. Several organizations and industry initiatives are dedicated solely to helping you grow your business and support your success. Get started →

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Starting is easier than you think.

We’ve got a plan mapped out and ready for you to follow — from choosing a business name and licensing to compliance and insurance. It’s a step-by-step process that takes the guesswork out of getting started. Get started →

Serious about opening your own shop?

Give us your contact information and we’ll give you a call to confidentially discuss any questions you have about owning your own broker shop. Don’t want to wait that long? Call us now at 1-800-229-6342!


Step 1: Getting Started

  • Choose a business name, check with your state registry to see if that name is available, and register it with the states in which you plan to do business. Don’t forget to check for an available URL if you plan to have a website.
  • Set up your business entity and determine what type of business is best for you (Sole Prop, LLC, S-Corp, etc.). Most states allow Sole Proprietors with a DBA trade name (a.k.a. fictitious name), it is recommended that you check with your individual state requirements and seek the advice of a CPA/accountant.
  • Open up your business bank account and/or trust account (if applicable).

Step 2: LICENSING

Step 3: SIGNING UP WITH WHOLESALE LENDERS

Find at least three lenders to partner with that fit your needs, then add as needed. Choose your lender partners wisely to ensure they have fair business practices when working with brokers. Suggested lenders include:

  • Conventional: United Wholesale Mortgage, Parkside Lending
  • FHA/Renovation: Plaza Home Mortgage
  • Low Credit: Nations Direct
  • New Construction: First Guaranty Mortgage, Flagstar Bank
  • Non-Agency/Non-Prime: Angel Oak Mortgage Solutions

Visit https://www.stopwholetaillending.com/ to learn more about protecting your business from questionable lending practices. Each lender has their own approval requirements which may include a minimum net worth, number of years of industry experience and/or expected monthly loan volume. Broker application approval typically begins once your company license is approved by the state. Support and grow with the mortgage brokerage community:

Step 4: Setting up your origination tools

Sign up with a Credit Reporting Company (CRC). Contact a company that will fit your pricing options and credit needs. There are over 80 different CRCs to choose from, including Kroll Factual Data, Equifax, CBC Innovis, Clear Choice Credit (Flat Fee Discount available) and more.

Obtain Loan Origination Software (LOS). Calyx Point, Encompass Byte Software have integrations with Fannie Mae, Freddie Mac and credit reporting agencies. Ask how your LOS representative can help set up your loan disclosures, credit report integration and pipeline reporting in preparation of NMLS Mortgage Call Reports.

Step 5: SETTING UP COMPLIANCE AND INSURANCE

Research your options. Make it a goal to set this up within the first 60 days of setting up your new business. A full compliance management system includes written policies and procedures, company management expectations, employment agreements, and marketing your business legally and compliantly.

Contact your insurance agent. E&O Insurance is recommended. A general liability business policy is optional.

* The material set forth above is provided for informational purposes only and does not constitute legal or other professional advice. Links to third-party websites are provided for convenience only. UWM does not endorse and is not responsible for the content of these third-party sites. Information on potential lender partners is provided for informational purposes only. UWM is not affiliated with and does not endorse these lenders.