Correspondent Lending Definition
Answer:Correspondent lenders are small lenders who do have the right to extend loans on their own risk and have the necessary funds to do so, unlike mortgage brokers who will often only shop loans for the borrower. However, after a loan is closed, a correspondent lender will rarely keep it in their portfolio. Rather, they will sell it to a larger wholesale lender they operate in close partnership with.
Sometimes a correspondent lender will work with several larger lenders.
A loan provider may act both as a lender and a broker, and as some brokers also have the right to close a loan in their name, it is not always clear whether you are dealing with a mortgage broker or with a correspondent lender.
Our advice: Be sure to ask your lender about FHA loans. FHA loans have very competitive interest rates because the loans are insured by the US Federal Government. Even if you have had serious credit problems, such as bankruptcy, it is easier to qualify for an FHA loan than a conventional loan. Also, taking an FIXED rate loan while the interest rates are still low is a smart idea. Check your eligibility here:
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Common misspellings: mortage and morgage