NAMB offering grants to start an independent mortgage brokerage

The National Association of Mortgage Brokers (NAMB) has rolled out a new KickStart program that will offer grants to loan originators who dream of opening their very own independent mortgage brokerage. The program’s first sponsor, United Wholesale Mortgage (UWM), provided a $500,000 grant of their own to get the program off the ground.

Qualified loan originators can receive a grant for up to $10,000 to help cover startup costs associated with starting an independent mortgage brokerage firm.

What’s the motivation for this grant program

The independent mortgage broker channel was crushed during and after​ the 2008 financial crisis. Many individuals abandoned their independent businesses in favor of the security and stability that comes with working under a Big Co. umbrella.

Simply put, ​it is in the best interests of the mortgage industry, and consumers, to strengthen the mortgage broker channel. By helping individuals aspiring to set out on their own, NAMB and UWM are also promoting their own goals. It’s a win-win program for those that qualify.

How to apply for a NAMB grant

The program is designed to target bank and branch-network based MLOs who “have experience in the residential mortgage industry and demonstrate potential aptitude to successfully own and operate an independent mortgage brokerage firm.”

To apply for a grant, you will need:

  • A minimum of three (3) years experience in the mortgage industry
  • Comprehensive business plan, including:
    • Company description – anticipated startup costs (office space, software tech, etc)
    • Anticipated operational structure – staffing considerations
    • Expected production(lo ans per month/year)
  • Two (2) reference letters

Grant applications get reviewed (and approved) by the KickStart Review Committee. Applications are reviewed in the order they come in, and you can expect to get a decision within a few weeks.

Check out the NAMB KickStart website for more information on the program.