Below is a new domain name registered by a net branch company within hours of QMAR shutting down. What happened to good taste?

www.qmarbranchesareclosed.com

“Ain’t no mountain high enough, Ain’t no valley deep enough, Ain’t no river wide enough…to keep me from getting to you baby…”

On Friday morning (March 24) I started hearing chatter about Quote Me A Rate Dot Com, one of the larger net branch operators, closing down without any advanced notice. By early afternoon it was confirmed that QMAR had apparently run out of funds and forced to shut down, leaving more than 2000 employees jobless. Their business model allowed small mortgage brokers, branch managers and independent loan officers to operate in multiple states for a small fee per funded loan. Unlike traditional employees, QMAR’s branch managers are personally liable for the payment of their own business expenses, including rent and payroll for support staff.

I have always criticized the net branch model because of the lack of protection it affords branch managers who take on all the financial risks of establishing and operating a branch, while working as “At Will” employees of the net branch companies. Imagine the financial consequences of running a branch with fixed costs and suddenly losing your entire pipeline without any advanced notice! It is a scary thought but apparently common practice in the net branch world.