A mortgage banker that already generates mortgage originations through retail and wholesale channels is now opening a correspondent lending channel.
The new business was announced by Caliber Funding LLC. Correspondent lending is expected to expand production capacity and provide more competitive product offerings for clients.
Caliber President Jim Ferriter said that a significant void has been left by the departure of several large correspondent investors. He expects Caliber to “play a role in the revitalization of the secondary market.”
Dallas-based Caliber made the announcement at the Mortgage Bankers Association’s Secondary Market Conference & Expo in New York.
Patricia Shumate has been appointed senior vice president of correspondent lending. Shumate was previously a founding correspondent lending executive at PennyMac-parent Private National Mortgage Acceptance Co.
Tag Gallaher was named vice president of correspondent operations, while Pat Gilmore is the new vice president of correspondent sales.
The move into correspondent compliments a merger with Vericrest Financial Inc. announced on Jan. 17. Caliber was founded in 2008 by Lone Star Funds, while Vericrest previously did business as a subsidiary of CIT Group Inc. until it was acquired in 2009 by Lone Star Fund VI.
Vericrest serviced $10.1 billion as of Feb. 13.
“Caliber’s entry into the correspondent lending channel supports the combined company’s goal to create a full-service, consumer-focused residential mortgage banking organization offering both loan origination and loan servicing solutions,” Caliber said.
The news release also indicated that investments are being made in fulfillment centers located in Florence, S.C., and Irving, Texas.
Caliber says it originates an average of $750 million per month and “anticipates continued rapid growth in the coming months and years.”
Total headcount stands at 1,240 “mortgage lending professionals.” Staffing includes 330 loan originators, 68 wholesale account executives and eight correspondent sales directors.
Caliber operates 88 retail branches.
More than a thousand active mortgage broker partners were reported in the announcement.
