In one sentence
A lender originating loans in its own name for delivery to an investor, often table-funded and immediately assigned.
The longer version
Correspondents originate to an investor's specifications, close in their own name, and assign the loans on. Life companies and agencies use correspondent networks to source loans beyond their direct footprint.
Correspondent closings involve simultaneous assignment mechanics, which put a premium on precise document coordination at the table.
Common questions
- What is a correspondent lender?
- A lender that originates loans in its own name and delivers them to an investor, such as a life company, often under an ongoing correspondent agreement.
- How does a correspondent relationship work?
- The correspondent sources and processes loans to the investor's standards, the investor approves and funds them, and the correspondent often services them afterwards.
- Is a correspondent the same as a mortgage broker?
- Not quite. A broker arranges loans for a fee. A correspondent typically originates in its own name and has a formal ongoing relationship with the investor.
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