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Direct & Indirect Competitors
The following residential mortgage brokerages are located within a 20 mile radius of [Company Name], thus providing either direct or indirect competition for customers:
The Loan Store
Established in 2010, The Loan Store originates, finances, and sells mortgage and nonmortgage lending products in the United States. It offers a range of consumer credit products, such as home loan products; home equity loans; and unsecured personal loans, as well as home and personal loan servicing. The company claims to be one of the largest private, independent retail mortgage lender in the U.S. Its current business channels include direct lending, affinity, branch retail and servicing.
However, agents working with The Loan Store experience high turnover, resulting in little concern for maintaining ongoing relationships with clients. Also, the agents themselves are mixed in quality, ranging from part-time brokers with little experience or sales records to full-time brokers with long-term experience. There is no systematic company method for passing on knowledge from experienced to inexperienced brokers as all are competing with each other, to a certain extent, for commissions.
Direct Loan Connection
Founded in 2006, Direct Loan Connection (DLC) employs licensed mortgage professionals who have access to multiple lending institutions, including banks, credit unions and trust companies. This access enables the company to offer a vast array of available mortgage products – ranging from first-time homebuyer programs to financing for the self-employed to financing for those with credit blemishes.
In addition to help for homebuyers and homeowners, Dominion offers commercial mortgages.
Unlike [Company Name], DLC operates with a smaller number of transactions each year due to the higher commissions they earn on each. They refuse to negotiate on their broker’s fees, and sometimes lose potential clients because of this. However, for the premium end of the market, they are the local leader.
Supreme Mortgage specializes in mortgage brokering, and is committed to helping homebuyers and homeowners the best mortgage with the lowest mortgage interest rate. The brokerage works with more than 40 lenders who compete to provide mortgages, and who pay Supreme Mortgage’s fee so that clients receive the service free of charge.
Some reviews of Supreme Mortgage point out the low quality service offered by brokers, who have little training in customer service. Furthermore, Supreme Mortgage does not attempt to maintain long-term relationships with customers who will eventually purchase another home.
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town, in the shopping district of the city. It is visible from the street where many residents shop for both day-to-day and luxury items.
- Client-oriented service: [Company Name] will have a full-time assistant to keep in contact with clients and answer their everyday questions. [Founder’s Name] realizes the importance of accessibility to his clients, and will further keep in touch with his clients through monthly seminars on topics of interest.
- Management: [Founder’s Name] has been extremely successful working in the mortgage brokerage sector and will be able to use his previous experience to grant his clients detailed insight into the world of home loans. His unique qualifications will serve customers in much more sophisticated a manner than many of [Company Name’s] competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers and other influencers.