Lend America Launches Correspondent Channel
Lend America, a Melville, NY-based Federal Housing Administration (FHA) lender, launched a correspondent residential mortgage lending platform this week. Lend America Mini Ginnie Correspondent will purchase closed loans from select FHA direct endorsed lenders through a bulk acquisition program that uses an online pricing simulator that will speed up transaction times and provide a new option for small and mid-size mortgage bankers, the company said. “There was a time when loan aggregators and their correspondent lenders were engaged in a healthy interdependent relationship,” said Michael Ashley, Lend America chief business strategist. "However, now the big aggregators are slowly but surely pushing out those very same companies. Relationships are terminated suddenly and without any real basis" Ashley added: "We feel this is unprofessional and is impacting many mortgage bankers businesses. We have built Lend America Mini Ginnie Correspondent to be an important solution for small to mid-sized FHA direct endorsed lenders who need a quality correspondent lending partner that they can count on before and after funding.” The minimum bulk pool size for the correspondent channel is $1m and Lend America said it anticipates it will acquire its first pool of loans by October 15. Cenlar Federal Savings Bank will act as sub-servicer for the loans. Earlier this month, Lend America returned to the wholesale lending space, operating in conjunction with its retail lending operation. In another initiative to provide funding for small and midsize lenders, Freddie Mac (FRE) announced a new program last week to promote warehouse lending for small and midsize mortgage lenders by offering guarantees to purchase some types of loans, even if a lender fails. Write to Austin Kilgore.