What You Need to Know About Correspondent Lending and the Three Traps that Could Cost You Thousands.
Perhaps you’re a residential mortgage lender with retail and wholesale originators and recently opened a correspondent channel. Or you already have wholesale, retail, and correspondent channels and operate them with separate systems and different data- bases. And before you took the plunge, you did all the research and had your attorneys put their legal blessings on it. You even put your correspondents through strin- gent procedures and are now selling packaged loans to investors on the secondary market. I have three words for you… Not So Fast.
Our Correspondent eBook won’t try to convince you correspondent lending comes without risk, nor is it meant to be a stern warning to “Just Say No” to correspondent lending, or get out if you’re already involved. Rather we will offer suggestions on how to proceed with caution and mitigate your risks. And once entrenched, we’ll suggest some best practices on how to make the process go faster, and stay more compliant as you control your correspondents. Finally, we’ll tell you the three most overlooked traps lenders make and the untold benefits you can gain with a simple tweak to your workflow.
Correspondent Lender: What it means (kinda’ sort of)
If it’s one thing I’ve learned in my dozen years writing about the mortgage industry it’s that no one ever seems to use the same terminology the same way. Just say the word “retail” and you’ll get more definitions than lights on the White House Christmas tree. The term “correspon– dent” is not much better. Making matters more confusing is that with the re-emergence of correspondent lending, the line between the banker and mortgage lender has blurred. So let’s take a moment for clarity’s sake on what we mean when we’re referring to the correspondent process.