By Rick Miller
Paraphrased by Samantha Giacco
Investment News, October 28, 2002

"Independent financial advisers have been eyed for some time as a potential outlet for mortgages, but tapping into that channel may not be so simple."

Indicative of the opportunity that financial planners provide to the mortgage industry, Well's Fargo & Co., acquired H.D. Vest Financial Services and with it, 6,000 independent tax and financial planners. The acquisition took place last year with the hope that the tax and financial planners would sell Wells Fargo's mortgage products.

These expectations have not been met and this may be due to the extra work the financial planner has to do in order to get the loan closed in addition to the small financial gain received once the loan actually closes. "I would say [Wells Fargo is] not being as successful as [it] had hoped to be rolling out the mortgage products; that's the feedback I'm getting from different people that are on H.D. Vest," says Vertical Lend president and chief executive David Peskin.

On the contrary, Vertical Lend, based in Melville, New York, offers financial professionals the opportunity to originate mortgages with minimal work and maximum revenue-generating opportunity.

Vertical Lend allows financial professionals to offer mortgages without having to obtain a mortgage broker's license. Vertical Lend members are covered by the company's licenses and E&O insurance, making the opportunity all the more attractive. Furthermore, the average closed loan earns a Vertical Lend Associate 1.25% whereas the typical Wells Fargo deal yields .5%--a vast difference.