Gateway Mortgage Group has announced the launch of a correspondent lending division to purchase closed mortgage loans from banks, credit unions and independent mortgage bankers. Gateway brought on Scott Henley, Molly Reed Davis and Linda Garloch to spearhead the new unit. Gateway’s new division was created to acquire conforming FHA, VA and USDA loans from approved correspondents and retain servicing rights on the loans. Some of the nation’s largest banks have begun to retreat from the correspondent lending channel in response to the implementation of Basel III requirements or as a strategic de-emphasis on the current mortgage market. By selling loans to Gateway, depository institutions are ensured that their primary relationships with the borrower, including deposits, personal loans and credit cards, will not be in jeopardy since 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,” said 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.”
Gateway hired Henley as VP of national production, Davis as chief credit and compliance officer, and Garloch as correspondent operations manager to oversee the new division. Henley, Davis and Garloch have more than 50 years of combined industry experience with expertise in correspondent and retail lending. The new correspondent lending team has held a variety of senior level positions at companies such as Bank of America, MetLife, Citi Mortgage, Cornerstone Mortgage, Freddie Mac and Countrywide Financial.
“Our new correspondent division not only enables Gateway to grow its servicing portfolio, but also diversify the geographic areas in which it services loans. We are confident in our new correspondent lending team and sure that Scott, Molly and Linda will bring us success in this new market,” said Kevin Stitt, president of Gateway Mortgage Group.
