Frequently Asked Questions

Does our bank have to be an ABA member in order to become an owner?

• Yes. Community Bank Mortgage LLC ownership is open to all ABA members. Your bank would need to join the ABA as a member before buying in.

How does our bank become a Community Bank Mortgage LLC owner?

• When a bank has determined that it would like to become a Community Bank Mortgage LLC owner, we will forward you an Offering package. The package contains all of the operating documents for the Community Bank Mortgage LLC, such as the by-laws and Operating Agreement as well as all buy-in materials. The bank typically performs a legal review of the package. In many cases, banks also start the approval process with our investors while reviewing the Offering package. When the bank is comfortable with the documents, they return a fully executed original set of documents to Community Bank Mortgage LLC, along with their buy-in fee, and at that point become a Community Bank Mortgage LLC owner.

What is the cost to buy in?

• There is a one-time buy-in fee that is based on the bank's asset size. (The amount can be obtained by signing a Community Bank Mortgage LLC Non Disclosure Agreement and can be requested through the contact form available on this website.)

Does Community Bank Mortgage LLC buy the loans we originate?

• No. Currently all loan production from the existing owner banks is sold directly into Wells Fargo and SunTrust Mortgage. Community Bank Mortgage LLC  then pays the bonus on the portion of the overall production your bank sells each month, and the bonus level is determined by the aggregate volume sold by all Community Bank Mortgage LLC owners in a given month. As volume increases, the bonus payment level also increases.

Are all loans sold as closed loans?

• Yes. Community Bank Mortgage LLC  is currently set up for owners to sell closed loans directly into Wells Fargo and SunTrust Mortgage as approved correspondents for each. Banks can sell loans on a best efforts or mandatory basis.

What are the benefits to our bank in becoming an owner?

• Community Bank Mortgage LLC owner banks receive a monthly bonus payment that is tied to each bank's funded volume, and the amount of the monthly bonus is a function of the aggregate volume sold by all owners into each investor affiliate.
• Owner banks are also eligible for periodic profit distributions from Community Bank Mortgage LLC  as well.
• Bankers have opportunities to participate in overall strategic planning for Community Bank Mortgage LLC  through appointments to the Operating Committee and Board of Directors, as well as various peer group discussions. 
• Owner banks also have the opportunity to further develop the value proposition of Community Bank Mortgage LLC by utilizing the power of collaboration in securing ongoing pricing advantages for community banks.

Can I see live pricing?

• Yes. All ABA members are required to sign a Non Disclosure Agreement prior to viewing live loan-level pricing and benefits information. Current Community Bank Mortgage LLC  owners receive correspondent pricing directly from Wells Fargo and SunTrust Mortgage.

Are there other benefits available?

• The Community Bank Mortgage LLC management and Directors are actively engaged in negotiations to add additional loan sale options for owners as well as expanding our menu of ancillary products and services.

Is our bank's mortgage subsidiary eligible for participation?

• Yes, as long as the parent company is an ABA member.

Are there monthly dues or fees required with ownership?

• No. ABA member banks pay a one-time buy-in fee to join.

Can my bank broker loans through the Community Bank Mortgage LLC?

• No. Community Bank Mortgage LLC is available for correspondent whole loan sales into Wells Fargo and SunTrust Mortgage on a flow basis.  

Can I sell loans through Community Bank Mortgage LLC on a servicing-retained basis?

• No

Have more questions? Contact us!