Big Banks Leave Black Hole in Correspondent Lending

Big Banks Leave Black Hole in Correspondent Lending

The competition when it comes to exits is intensifying among big banks that purchase mortgages from correspondent lenders, producing liquidity problems for loan originators and mortgage servicing that is radically reshaping.

Citigroup Inc. told correspondent loan providers this thirty days so it will no further purchase «medium or high-risk» loans that may end up in buyback needs from Fannie Mae or Freddie Mac. That pullback uses giant loan purchasers Bank of America Corp. and Ally Financial Inc. pulled out from the correspondent channel during the end of 2011, and MetLife Inc. exited all nevertheless the reverse mortgage company.

Loan providers available in the market state another player that is big PHH Corp., has taken right straight straight back too. Continuar leyendo «Big Banks Leave Black Hole in Correspondent Lending»