Gateway Mortgage Group, headquartered in Tulsa, Okla., has launched a correspondent lending division to purchase closed mortgage loans from banks, credit unions and independent mortgage bankers.
According to the company, the new division was created to acquire conforming Federal Housing Administration, U.S. Department of Veterans Affairs and U.S. Department of Agriculture loans from approved correspondents and retain servicing rights on the loans. By selling loans to Gateway, the company adds, depository institutions are ensured that their primary relationships with the borrower, including deposits, personal loans and credit cards, will not be in jeopardy because Gateway is not a competitor for those products.
‘Gateway is entering the correspondent lending space at a time when some major banks have scaled back or exited the channel altogether, which leaves originators with fewer options in the secondary market,’ says Scott Henley, vice president of national production for Gateway Mortgage Group. ‘The limited resources have led to frustrations and delays in getting loans sold to investors. Gateway alleviates this issue by acting as an additional loan sale outlet to financial institutions and mortgage bankers.’
‘Our new correspondent division not only enables Gateway to grow its servicing portfolio, but also diversify the geographic areas in which it services loans,’ adds Kevin Stitt, president of Gateway Mortgage Group.