Prompted by an environment of industry consolidation, American Mortgage Network has created a unit that will buy closed loans from small to medium sized originators.
The AmNet Mortgage Inc. subsidiary announced today that it launched a correspondent channel which will purchase loans from small to midsize mortgage banks, credit unions and community banks.
"Correspondent lending is a significant part of the industry with an estimated overall market size of $1 trillion in 2003, or 26% of the total mortgage market," said CEO John M. Robbins in the statement. "While we had originally planned to launch a correspondent channel in 2005, industry consolidation alerted us to the opportunity sooner than expected.
"Because of the investments that we have made to date in technology and other resources, we were able to establish our correspondent channel very quickly by industry standards, becoming fully operational within just 12 weeks," Robbins added.
While AmNet is headquartered in San Diego, the new unit is based in a Baltimore.