Nationwide lender New Penn Financial LLC has launched its mini correspondent program, which the company says enables small to midsize clients to close and fund their own loan production.
New Penn says that under the program, mini correspondent clients originate loans, submit them to New Penn for underwriting and clear-to-close issuance, complete the closing/funding process, and sell the loans back 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. According to New Penn, smaller institutions can then price mortgages competitively, serve borrowers directly, brand loans/documents as their own and limit risk. Additionally, lenders can do the following:
áÂ Â Â Bank or broker loans based on warehouse or funding limitations;
áÂ Â Â Offer New Penn's proprietary loan programs;
áÂ Â Â Control the closing/doc draw process through approved vendors;
áÂ Â Â Extend purchasing days beyond lock expiration dates; and
áÂ Â Â Attain greater price flexibility.