NexBank launches correspondent lending channel
North Texas banking and financial services firm NexBank recently launched a correspondent lending group to accommodate changing conditions of mortgage regulation reform. Correspondent lenders originate and fund loans in their own name, then sell them off to larger mortgage lenders, which keep the loans on their books and service them or sell them to the secondary market. Mike Rossi, executive vice president at NexBank, said timing has a lot to do with the launch. In this economic cycle, he said, everyone is looking for quality mortgage solutions that provide reliable access to funding. Head of NexBank's mortgage division Jed Meaux said the work fits the size of his bank. "As a correspondent lending partner, NexBank offers mortgage brokers the opportunity to serve as mortgage bankers to their customers," Meaux commented. "And small community banks can provide mortgage solutions to their banking customers but leave the backroom work of underwriting to us." NexBank currently plans to focus on lending in Texas, but said it is considering other markets in the region. NexBank's mortgage division experienced double-digit growth in 2010. The bank entered wholesale lending in 2008. Meaux added that he believes correspondent lending will enhance his firm's overall wholesale and warehouse lending platforms. Write to Christine Ricciardi. Follow her on Twitter @HWnewbieCR.