A new breed of correspondent lenders has emerged, with many choosing to broker much of their originations.
While correspondent lenders in the past viewed themselves as small banks or thrifts, more than 75 percent of the current group consider themselves independent mortgage firms, according to a Campbell Communications' How Correspondent Lenders Work with Their Investors report announced today.
"Many correspondent lenders today are essentially 'super' mortgage brokers that have warehouse lines and can fund their own loans," said the report's author Tom Popik in the announcement. "They decide on a loan by loan basis whether to sell their production on a flow correspondent or wholesale broker basis."
More than one-third of correspondent lenders surveyed in the report indicated they broker loans on a regular basis, Campbell said.
Lenders that consider pricing a priority are more likely to choose the bulk channel, while those that are more concerned with liability choose the wholesale channel, the report said.