1st Metropolitan Mortgage Launches California Subsidiary.

TMAC The Mortgage Alliance Company to meet unique needs of California originators

SEATTLE -- 1st Metropolitan Mortgage, a national mortgage brokerage, announced here at the annual National Association of Mortgage Brokers conference that it has opened a California subsidiary called TMAC The Mortgage Alliance Company. The company will help meet the needs of mortgage professionals in a state with a unique origination environment.

TMAC's model is based on 1st Metropolitan's successful MetroBranching system and the desire to support originators who have been interested in joining the company and having the option of being paid on a 1099 basis, as licensees of the California Department of Real Estate (DRE).

"California has multiple licensing types, one of which - the DRE - uses its real estate licensing structure to license mortgage brokers. As a result many California mortgage brokers are used to working under special the real estate salesperson exemption, which allows them to be paid via 1099. Until now we have not had an option for a CA originator who wanted to work as a DRE licensee and get paid via 1099. 1st Metropolitan is a W2 employee only operation nationally," said Daniel Jacobs, CEO of 1st Metropolitan and TMAC. "Originators in California will now have all the benefits of our corporate office while further enhancing their opportunity for success within the traditionally used 1099 DRE structure."

1st Metropolitan management started TMAC because the broker saw a large number of local and regional net branch operators in California that did not provide real back office infrastructure or support of their branches. This type of model hurts the originator as well as the industry and the consumer, Jacobs said.

"We conducted an in depth analysis of why these shops are popular and why originators affiliate with them instead of nationally branded branching companies such as ours," Jacobs explained. "We found that the number one reason was the requirement of being a W2 employee instead of a 1099 DRE licensee. As a national company focused keenly on being 100 percent compliant in everything we do, we operate to the strictest guidelines nationwide in all of our branches. So, we created TMAC to address this unique issue in California. We are excited to become a much larger player in the vast California market."

Individuals who join TMAC will need to have a DRE license. Other requirements include a solid business plan, proven management skills, a minimum of three to five years of origination experience and a solid reputation with unquestionable integrity and ethics. TMAC will have certain limitations that 1st Metropolitan does not, such as the ability to originate loans only within CA. "The good news is our infrastructure will now be available to California originators under two models, which will allow a best-fit analysis to be done while still being able to leverage the power and strength of 1st Metropolitan under either circumstance," said Jacobs.

About 1st Metropolitan Mortgage

1st Metropolitan Mortgage, headquartered in Charlotte, N.C. and a division of Empire Equity Group since 2002, is a national mortgage brokerage, is licensed in 49 states with approximately 250 branches nationwide. Leveraging the 24 years of experience of its parent company, MetroBranches have the economies of scale to offer not only a broad range of loan products through its 150 lenders, but also the newest and most innovative loan products geared toward true financing solutions customized to each borrower's individual needs.

About Empire Equity Group, Inc.

Empire Equity Group has been in business since 1983 focusing heavily in the Northeastern United States. Since the acquisition of 1st Metropolitan, Empire has established development programs for branch managers, additional infrastructure to meet the needs of branches and installed the latest technology, such as an expanded intranet site and an innovative online loan origination system. For more information, call 704.552.0123.