A new correspondent program caters to smaller mortgage lenders while at the same time providing access to proprietary loan programs.
The mini correspondent mortgage lending program was unveiled by New Penn Financial LLC, according to a news release issued Wednesday.
The program allows mortgage bankers, community banks and credit unions to expand their mortgage businesses while limiting risk and maintaining their brand credibility, according to the Plymouth Meeting, Pa.-based company.
Correspondent clients submit loans to New Penn for underwriting. Once the loan is cleared for closing, the client completes the closing and funding process and sells the loan to New Penn.
“The client remains the lender of record and is responsible for disclosures, closing and funding, while New Penn provides the loan decision,” the statement said. “Smaller institutions thus can price mortgages competitively, serve borrowers directly, brand loans/documents as their own and limit risk.”
Loans can be brokered or handled on a mortgage banking basis depending on the client’s warehouse capability. In any event, clients control the closing and documentation drawing through approved vendors.
The announcement indicated that purchasing days can be extended beyond lock expiration dates, while clients have greater price flexibility.
New Penn’s proprietary loan products are available through the mini correspondent program.
New Penn first launched a correspondent channel in September 2011.