Question:

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.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
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:

Common misspellings: mortage and morgage