New Penn Financial LLC has launched its mini-correspondent program which enables clients such as mortgage bankers, community banks and credit unions to expand their mortgage businesses while limiting risk and maintaining their brand credibility. 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. Smaller institutions thus can price mortgages competitively, serve borrowers directly, brand loans/documents as their own and limit risk.
Additionally, lenders can:
►Bank or broker loans based on warehouse or funding limitations
►Offer New Pen’s proprietary loan programs
►Control the closing/doc draw process through approved vendors
►Extend purchasing days beyond lock expiration dates
►Attain greater price flexibility
“This new program adds the third leg to our successful correspondent and broker/wholesale business channels," said New Penn COO Brian Simon. "We’re pleased to support the nationwide mortgage community with services that fulfill their requirements for mortgage revenue with reduced risk. We’re here to help these businesses grow.”