Section 1 of 3: The Basics
Yes, you need your license for each state in which you'd be originating.
C2 is licensed in AZ, CA (under the BRE and DBO), CO, FL, HI, NV, OR, TX and WA.
C2 Financial has a $150 application processing fee, which is refunded on the first closed loan with C2, if the loan is closed within 6 months of contract date.
The C2 platform is designed primarily for seasoned and experienced and self-sufficient originators. However, we may be able to find a C2 branch to place you in who can offer training and support. Please inquire.
C2 strictly focuses on doing one thing very well and that is brokering where there are no padded rates sheets. If you are coming from a 'banking' background, we can align you with a C2 trainer who is paid a training fee to assist you in learning how the 'broker' channel works in terms of shopping lenders, locking loans, issuing disclosure, etc.
Most states are paid 1099 with the proper license. Some exceptions: In CA, DBO requires W2. Additionally, Oregon and Arizona and Nevada require W2. Note: If you obtain license (under C2) in a state outside of your home state, that can impact your pay status in your home state.
All DRE salespersons must be exclusive with C2 and operate as C2. All originators operating outside of California must be exclusive with C2 and operate as C2. In some limited cases, California Licensed Brokers are not required to be exclusive with C2 Financial.
Pay cycles depend if you're in 1099 or W2 state.
1099 state: C2 cuts commission checks every day. Once we have the complete file and check, commission are cut and sent.
W2 state: C2 cuts W2 checks each Friday. We must have both the file and check the PREVIOUS Friday to give adequate time for the file to be reviewed, conditioned, and conditions to be returned by you. If conditions are not returned within a timely manner, the payout may get pushed into the following Friday.
We require all C2 Loan Originators to close at least one loan per quarter.
C2 is approved with approximately 100 wholesale lenders and banks. The programs cover almost every possibly type of loan, Conventional, FHA, VA, USDA, CalHFA, MCC, commercial, etc. etc.
C2 does not have its own rate sheet. You will simply use our lender's rate sheets, these are available on the lender's website, or Loansifter ($60/mo.), an online pricing engine, to price out loans.
C2 allows you to use any industry standard loan origination software, Calyx, Encompass, etc. The most popular is Calyx Point. If you do not currently have Calyx, you can purchase a copy of Standard Calyx Point through C2 or you can purchase this or their upgraded Point Central directly from Calyx Point. Alternately, you may piggyback on a current C2 branch's Point Central. This last option is slightly more expensive as it's plug-and-play and includes training.
There are 3 options for processing:
- You can use a bona fide 3rd party processor. Must be licensed, i.e. DRE, DBO, etc
- You can use a W2 C2 processor
- You can self-process (Note: Not all lenders allow this and we generally don't recommend this)
Important Note: If you are using a bona fide fully licensed 3rd party processing company with the proper license, the processing fee may be paid by the borrower through closing/escrow. The processing fee must be disclosed properly on the LE and CD, of course.
If you are using a C2 W2 processor, you cannot charge a processing fee, and the processor is paid from the LO comp, through C2.
In general, file flow looks like this, but the order of some steps can vary of course:
- Originator takes the 1003 in Calyx Point (or other software).
- Originator emails Calyx Point file to Processor.
- Processor issues initial disclosures to borrower within 3 days.
- Borrower signs and returns initial disclosures.
- Processor orders title, appraisal and opens escrow.
- Processor submits the file to the lender.
- Originator locks interest rate on lender's website.
- Processor emails a 'skeleton' file to C2's corporate office for Pre-QC Check.
- Originator/processor works with the lender to close the file.
- Once C2 Pre-QC Dept. issues the ATC #, or Authorization-to-Close #, lender funds the file.
- Originator/processor submits the funded file to C2, escrow sends the broker check to C2, and file is reviewed by Final QC and paid out.
Make sure to meet with our processor to confirm the division of labor, i.e. who does what. Some processors may require the originator to handle certain functions that other processors may not.
You will need to set up an account with an independent credit service. The credit vendor must understand that you, the originator, are responsible for payment of all invoices.
C2 is approved with approximately 100 lenders, covering all niches. To see our lender list, go to www.joinc2.com. As we are always adding lenders, it may not be the very latest list, so if you're wondering about a certain lender, please ask.
C2 has developed proprietary online systems and tools, that will assist you in finding a lender for your scenario. Additionally, many C2 originators use LoanSifter, an online pricing/program engine. We also have a monthly newsletter that contains a lender niche section; in addition, C2 hosts live meetings that are attended by lenders where you can ask specific loan questions.
Section 2 of 3: Logistics/Operational Questions
In order to act as a branch manager, you must have experience in mortgage origination and receive pre-approval. C2 can split commission checks between the branch manager and his/her Jr. LO. However, splits must be based on a pre-set and static schedule included in the contract that C2 provides i.e. X basis points on in-house leads, Y basis points on self-generated leads.
California: DBO originators in California must be paid W2 so the answer is 'no' for DBO origination. DRE originators can do this, but it must be set up properly. C2 will need documentation that you are the owner, such as "articles of incorporation".
Outside of California: If the state is W2 like AZ, obviously this is not allowed. But some states do allow this. C2 will need documentation that you are the owner, such as "articles of incorporation". Inquire with us about your particular state regulations.
You can bring self-generated leads with you assuming your current contract allows it, but absolutely no company-provided leads can be brought to C2. If you are bringing over self-generated leads, you must obtain a letter from your borrower acknowledging your change of broker/lender and their desire to transfer the loan.
Yes, you can, but you MUST have any advertising approved by our Compliance Department first. All advertising must be in C2's name. (Non-exclusive Broker in CA exception may apply) This applies to any form of advertising, including, but not limited to, print, radio, television, and internet. Advertising without obtaining approval from C2 is grounds immediate termination. We take this very seriously.
Yes, all C2 loan officers must operate and advertise as C2 Financial. (Non-exclusive Broker exception may apply)
Yes, all paperwork that is submitted to the lender must be submitted under and as C2 Financial.
Business card and letterhead can be ordered directly from our website in the C2 Financial Online Store and can be ready within a week of approval. You can also download the C2 Financial logo from our website and create your own letterhead, envelopes, stationary, business cards, etc.
C2 loan officers cannot originate - or process - their own loan (personal property) or their spouse's loan since the loan needs to be an arm's length transaction. Another C2 loan officer must be the loan officer on the file.
In general, you will use the AE who is currently assigned to the C2 account which is reflected on our lender list. However, there are some occasions, where you may wish to use a local AE. In these cases, have the AE contact C2 corporate about being added as an AE.
You would never use your home address. The address would be the branch with which you are associated which may be:
- C2's corporate office address.
- A registered C2 Regional Branch office address.
- Your branch office address, assuming you're in a licensed commercial branch office.
Note: If you are operating out of a commercial office location, you must notify C2 so we can register the branch with the state and NMLS.
If you are working from a commercial space, you must notify C2 Corporate so we can register your branch with the state and NMLS. Branch registration fees vary by state. Please inquire as to the branch registration fees in your state. (A few states require even a 'home office' be registered. We will notify you if this is the case)
Yes. While C2 focuses on primarily residential mortgage, we do have a commercial division that can assist you with commercial loans.
If you have your CA BRE license in California, yes you can. All real estate is conducted through California State Realty Services, our Real Estate Division. (See "Real Estate" Addendum for contract details on C2's website under "Real Estate.") The split is 85/15, plus a $625 Transaction Coordinating Fee, which includes E&O insurance and your TC fee.
Section 3 of 3: Making the Transition
Generally 3 days, however the processing time will largely depend on how quickly we can make contact with your references so please make sure the reference phone numbers are accurate and please list confidential references that know the accuracy of your files and professionalism.
You do NOT have to notify your broker that you are leaving. Once you change your licenses over to C2 Financial, your former company will receive notification from the NMLS that you have moved your license.
You do NOT have to have your broker sign any paperwork to "release" you. When you complete your license transfer online it will displace your old broker automatically.
As soon as we send you your 'Hire Date' email and your license has been officially transferred to C2 Financial, you can immediately begin originating NEW loans with C2. Until that point, you CANNOT do any activity under C2 and loans originated out-of-compliance will be subject to return of commissions to borrower.
In cases where it's only going to take a week or so to close out your pipeline, we have developed a transition team for prospects that are looking to make the move to C2 Financial. This transition team will help prospects by getting the loans started under C2, while the prospect works to fund out loans in their pipeline at their current lender/broker.
After your initial application is approved, we'll send you the contract. Once you return this and your licenses are fully transferred to C2, you may begin originating under C2. You will then receive an email with your formal 'hire date'.
PLEASE MAKE SURE YOU HAVE RECEIVED AUTHORIZATION IN WRITING FROM C2 PRIOR TO REPRESENTING YOURSELF AS C2 OR ORIGINATING LOANS UNDER C2.
UNTIL YOUR LICENSE IS OFFICIALLY SHOWING WITH C2, YOU CANNOT INTERACT WITH ANY BORROWERS ON BEHALF OF C2.