« matrix: correspondent lending »
» search matrix: scotsmanguide.com/correspondent
This matrix should be used by mortgage brokers or bankers
looking to develop a correspondent-lending relationship with a
larger lender (aka sponsor). Correspondent lenders originate and
fund loans in their own name and then sell the loan to a larger
lender that will service or sell the loan. Use this matrix to find the
sponsor whose minimum requirements, programs and products
fit your company’s needs.
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REQUIREMENTS
1 Minimum years in business
2 Minimum company net worth ($K)
3 Minimum average monthly volume ($K)
4 Minimum E&O insurance coverage ($K)
5 Minimum fidelity bond coverage ($K)
6 Minimum warehouse line ($K)
7 Minimum company liquidity percentage
8 Audited financial statement
9 Personal guarantee
PROGRAMS OFFERED
10 Third party originations
11 Emerging mortgage banker
12 Warehouse lines
13 Product pricing engine
14 Delegated underwriting authority
15 Flow
16 Bulk
PRODUC TS OFFERED
17 Conforming
18 Portfolio/nonconforming
19 FHA
20 VA
21 USDA
22 Jumbo/super jumbo
23 Reverse
24 Minimum FICO
COMPANy NAME
American Financial Resources Inc.
2
866-656-9728
www.afrwholesale.com
CON TACT: Corey Dubnoff, corey@afrmortgage.com
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BofI Federal Bank
888-883-9672
www.bofifederalbank.com
2
CON TACT: Darin Judis, djudis@bofi.com
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
500K
0
250K 500K 1M
25 Y
Y
YYYY
Y
Y
600
NATION WIDE FHA and USDA; flow or bulk. Purchasing 203(k)s and FHA Repair Escrow prior to final disbursement. Prior approval or delegated - you decide per loan.
2.5M 10M 500K
0
0
25 Y
Y
Y
Y
Y
NATIONWIDE
660
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Jumbo/super jumbo, niche, portfolio
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First Guaranty Mortgage Corp.
888-295-7899
www.FGMCcorrespondent.com
CON TACT: Jeffrey Gibson, jgibson@fgmc.com
2 500K 300K 300K 500K 500K 0
YYY
YYYYY
YYY
530
NATION WIDE Niche government; FHA 203(k), Streamline and Full, with administration; VA 100% cash-out; manufactured home; USDA; Fannie Mae
HomePath and HomePath Renovation
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Impac Correspondent Lending
888-750-8080
www.ImpacCorrespondent.com
CON TACT: Larry Maitlin, lmaitlin@impaccompanies.com
display
JMAC Lending Inc.
949-390-2615
www.jmaclending.com
CON TACT: Christina Pham, christina@jmaclending.com
3
1M
1M 300K 300K 1M
25 Y
YY
YYYYY
YYY
580
NATION WIDE except: SD
FHA, VA, USDA, FNMA and FHMLC with minimal overlays; flow or bulk; no seasoning restrictions
4 150K
0
500K
0
0
0
Y
Y
Y
YY
NATIONWIDE
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0 250K
0
300K 1M
3M 20 Y
YY
YYY
Y
YYY
620
NATIONWIDE except: HI MS NY
Minimum overlays; broad product offerings; experienced operations staff; correspondent client approvals in 2-3
Tell lenders you found them in Scotsman Guide
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Scotsman Guide makes every attempt to ensure the quality of matrix and directory information, which all listed lenders verify or update monthly. Because of the production cycle and dynamic nature of the industry, loan product
terms and availability may not reflect the latest changes. Please contact lenders directly for the most-recent program details. If you believe data is inaccurate or misrepresented, please e-mail: matrixfeedback@scotsmanguide.com.
undertaking appraisals, processing
fees, etc. Bankers incur costs that can
vary widely, however, and these costs
occur at nearly every step until the sale
of a loan.
There are appraisal review fees,
pairing-off fees, haircut fees — i.e.,
risk-determined fees that are charged
when a loan is sold on the secondary
market — all of which can significantly
affect a bank’s net earnings. When
loans sit on the line for too long, investors also can charge you for a delay in
purchasing availability. Properly designed policies, however, can prevent
certain purchasing delays, like those
caused by the Mortgage Disclosure
Improvement Act.
Brokers interested in banking also
should know that purchasing delays
can be caused by investors themselves,
who may or may not require a full review
of each loan submitted for purchase.
With that in mind, when seeking investors, inquiring about normal turn times
is crucial. Being familiar with these time
frames will help you devise either a final
condition list or an as-is purchase agreement, which will allow you to include
shipping times and review times when
« POSI TION continued from page 22
developing purchases’ locking policies. Again, limiting a deal’s time on the
warehouse line ultimately will limit costs
taken out of the SRP.
Regardless of a bank’s locking policies, breaking locks still may be inevitable, so prospective bankers should
know how to handle these situations.
In short, the most cost-effective strategy to take is simply to break a lock
as soon as you must. If you take the
route of letting a locked-in rate expire because you want to do business with another investor, you may
end up being offered worse pricing or
higher costs.
All things considered, hefty SRPs may
no longer look so alluring to brokers
when they factor in all of the costs associated with operating a mortgage bank.
Of course, mortgage banking can be a
highly profitable business, but the cost
of running any prospective business
must be adequately accounted for.
other considerations
Finally, in making the transition to
banking, mortgage brokers should fa-
miliarize themselves with warehouse
lines and third-party originations
(TPOs), aspects of the business that
may require different pricing models.
Compliance is one of the most important aspects of being a mortgage
banker. Having an employee monitor
local, federal and state regulations
can mean the difference between being in business for a few years and
being in business for 30 years. From
keeping in check with the Home
Mortgage Disclosure Act to making
sure that loan officers are licensed
and certified, the necessity of proper
compliance can’t be overstated.
Adequately preparing in this regard
will be vital to the success of your new
organization.
• • •
Pursuing a career as a mortgage broker
certainly offers its own variety of re-
wards — and financial incentives — but
for some, these rewards can increase
by entering the world of mortgage
banking.
That move must be made with care
and caution, however. Thoroughly educating yourself about mortgage banking operations can help you put the
necessary pieces in place, and design
solid policies, systems and management that will keep your company as
healthy and profitable as possible. •
