A mortgage lender business plan can be a complex document because of the nature of the business itself. Mortgage lending is an increasingly-regulated field, and depending on your connections and whether you are in business already or not, the plan could be a trying ordeal. You will have to show a detailed roadmap for how you will obtain and fulfill loans. If your business is regional, the market analysis should consider not just the state of the industry, but the forecast for housing in the state/region and the volume of new loans being originated. Show how many new loans there are versus refinances, and track the historical interest rates as part of your market analysis. Also, no matter how obvious it may seem, be sure to make a case for the market need, particularly if any part of your presentation will be made to a bank.
Other factors to cover in detail:
• - How much funding do you need to launch the business?
• - What payback or equity scenario do you envision?
• - Which mortgage lenders do you compete with?
• - What strengths or selling points do you offer?
• - How will you market or brand yourself?
• - What management team gaps do you need to disclose?
Also vital to a mortgage lending business plan is a complete financial pro forma, most likely showing a 5-year projection and, if applicable, detailed start-up tables including use of funds and assumptions tables. Cash flows, revenues, P&L, and balance sheets needs to be included as well as a sensitivity analysis and a monthly breakdown for Year 1 post-funding. MasterPlans can develop this pro forma for you, or perform the market analysis you need. We have almost a decade of experience and have seen many ebbs and flows in the mortgage lending industry. We've written hundreds of plans in this sector and our trained project leads and modelers can assist your venture as well. Call to speak with a consultant today: 877-453-2011.
