Contract Extends GSE Access to $40bn in Originations
Lenders One Mortgage Cooperative, a national alliance of mortgage bankers, today announced the extension of its contract with Fannie Mae (FNM) as a preferred investor, allowing continued access to the competitive pricing inherent in the contract. "Our members will enjoy superior secondary market execution while Fannie Mae can buy high quality loans from high quality lenders from across the country," Lenders One CEO Scott Stern said in a media statement. The traffic of loans moving from Lenders One members to Fannie Mae recently reached an all-time high, he said, making the contract renewal more relevant than ever. The swift funding cycle associated with mortgage bankers selling loans to a government-sponsored entity -- freeing up credit for more originations -- remains "crucial" as the market continues to search for a bottom, Lenders One said. In addition to the mortgage bankers, Fannie Mae also stands to benefit from the renewed contract, the cooperative said, continuing to expand its market share through Lenders One's 140 members and combined $40bn in annual mortgage originations. The announcement marks a continuation of Fannie Mae's seven-year history of working with Lenders One. The only GSE in Lenders One's network of preferred investors, Fannie Mae works with the cooperative and provides preferred pricing and priority service to Lenders One members. Write to Diana Golobay at email@example.com. Disclosure: The author held no relevant investment positions when this story was published. Indirect holdings may exist via mutual fund investments.