What is correspondent mortgage lending?


When an institution is authorizing loans on behalf of a certain wholesale mortgage lender, they practice the so-called correspondent mortgage lending. In other words correspondent mortgage lending serves as mediator between wholesale mortgage lenders and borrowers, including underwriting and loan servicing.

Correspondents act much as brokers in various cases and can easily be mistaken.

A notable difference, however, is that a correspondent mortgage lender will often be in a closer relationship with certain larger lender to whom they sell their loans. This lender will be the correspondent's sponsor and will further be reselling loans to secondary market mortgage players, such as Fannie Mae and Freddie Mac.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: