Affiliated Mortgage Company announced it is exiting correspondent lending and shutting down AMC’s Correspondent Division, effective Aug. 15.
“As you are aware, there have been significant changes within the mortgage industry that have impacted our business over the past several years. Based on the current environment, and after careful consideration, Affiliated Mortgage Company has made the difficult decision to exit the correspondent business,” said Jason Beene, president of the Correspondent Division.
“Over the years, we have formed strong relationships with our lending partners and greatly appreciate the trust they have placed in us. We wish each of them continued success and will be available to them to answer any questions that arise concerning their loans until all pipelines are cleared,” Beene added.
The closure affects only AMC’s Correspondent Division, while the retail and wholesale/mini-Correspondent channels remain fully functional.
Affiliated Mortgage is not alone in feeling the impact of the current tight lending environment. Prospect Correspondent Lending recently announced it is scaling back its footprint in correspondent lending to areas it believes offer more of a competitive advantage.
"Because of a very rapidly expanding and underserved renovation lending market opportunity, Prospect Mortgage has created a targeted approach to expand liquidity options to its correspondent lending partners for this product,” said a spokesperson for Prospect.