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passed through the settlement agent at the time of closing or settlement from borrower or lender must be disclosed on the HUD-1, which requires the same disclosure on the GFE. AIR requirements: Mini-correspondent clients must follow the AIR policy to comply with industry requirements, which requires the use of their own AMC and process. Submission: The loans are submitted (non-delegated) the same as a wholesale loan. Underwriting: Mini-correspondent loans are underwritten by the investor prior to closing, much like a wholesale loan. Clear to close: Once conditions are met and the loan is clear to close the correspondent will handle the closing and funding of the transaction.
Ordering docs
There really aren’t a lot of differences in terms of file flow between the wholesale and the mini-correspondent
Step one: Set yourself apart
Why should people buy from you instead of another mortgage lender? Your goal is to own a position in the customer’s mind so they think of you differently from the competition. This is actually a core principle of branding: differentiation. The more unique you are, the less competition you will have. As Seth Godin, marketing guru and author of The Purple Cow, says, “The most successful companies today are the ones that are finding a niche and serving it.” That certainly applies to mortgage lending. When it comes to branding, size doesn’t matter: niches do. What niches are you serving? Is it Step two: Know your VA, USDA, jumbo products or purchase target customer business? As a small mortgage compa- Who is your customer, and what is the ny, you can’t be all things to all people. one thing they ultimately want from you? It’s not always about price. But you can identify your niche. Often it’s about making sure you can l Old homes niche: Do you know a get the job done in a timely, profes-
sional and stress-free way.
Step three: Develop your brand personality How will you show your customers and partners what you’re all about? If you promise quick service, what will “quick” mean inside your company? How will you make sure service stays at the level you have established? Your branding strategy doesn’t need to be more than one or two pages long. It may even be simple as a short paragraph.
Make your brand your biggest competitive weapon Becoming a correspondent may be just what you need to work along with your marketing plan to establish and define your brand. It will allow you not only to have more control of the process, but it will also to help build your brand by allowing you to disclose and order appraisals in your own name. Scott Compton has more than 20 years in the mortgage business, and is the regional manager for Plaza Home Mortgage Inc.’s Boston office, leading “Team Boston” in the successful transition to the purchase market. He may be reached by e-mail at scott.compton@plazahomemortgage.com or call (781) 246-5505.
We have them! Do you? Because we bond thousands of mortgage companies across the country we use our buying power and leveraged competition among multiple surety companies to offer underwriting parameters and lower rates that other bond agencies only wish they had. Don’t wait for your bond’s expiration. Trade in your overpriced bond for a new bond – And start saving money today!
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n Pennsylvania Mortgage Professional Magazine n OCTOBER 2013
l Funding: The loan is funded through the warehouse line and the loan is charged an interest rate, which may be offset by interest that the mini-correspondent earns on the loan. l Purchase review: Once the loan funds, the mini-correspondent ships the loan to the end investor for purchase review. l Outstanding conditions: If items are outstanding, a STIP sheet or purchase condition sheet will be sent to the mini-correspondent client to fulfill the outstanding items.
Branding and marketing plans work hand in hand Every company—no matter its size—should have a marketing plan. A marketing plan defines your targets and focuses your vision and mission.
neighborhood full of large, beautiful old homes? Become an expert in Energy Efficient Mortgages and partner with local real estate agents to sell those homes fast. Research shows that younger buyers think that energy efficiency is very important in their home purchase decision. l The remodeling niche: Do you know an area with lots of foreclosed properties? Become an expert in 203(k) Streamline loans and help buyers turn those run-down homes into their dream homes. Give a “Lunch & Learn” presentation at realtors’ offices to educate them about the uses and benefits of these loans. l The retirement purchase niche: Live in an area with an older population? Become an expert in reverse mortgages and help retirees buy a home with a reverse mortgage. More than 10,000 people turn 62 every day, so the market opportunity is HUGE.
NationalMortgageProfessional.com
Once the loan is clear to close, the mini-correspondent orders loan documents from their doc provider. Most mini-correspondent clients will use a fulfillment service that completes this task for them. Many warehouse banks will provide or partner with fulfillment companies to handle this service for the mini-correspondent banker. Some warehouse banks may require a specific fulfillment service. Fulfillment service is a great option for many correspondent clients because it eliminates the need for additional staffing and may reduce liability. In some cases, the Investor may draw closing documents for a mini-correspondent client.
channel. Below illustrates the flow of the mini-correspondent loan.