What Services Does a Mortgage Correspondent Provide?

A mortgage correspondent is a company that packages their loans together and sells them to a larger lender. The larger lender provides the mortgage correspondent with economies of scale that they cannot get on their own. Here are a few things to consider about mortgage correspondents.

Benefits of Mortgage Correspondents

One of the primary advantages of using a mortgage correspondent is that you can secure a better interest rates. These lenders work with larger lenders so that they can provide competitive interest rates to their customers. Instead of having to work with a large lender to get these rates, you can still work with a smaller lender. This provides you with a personal touch that you cannot get from many of the large lenders in the market. 

Drawbacks of Mortgage Correspondents

One of the potential disadvantages of using a mortgage correspondent is that you will have to send your payment to the large lender instead of working directly with the correspondent. Many people do not like sending money to a company that they have not had any prior dealings with. If they would prefer to work with a single lender throughout the process, this method may not be for them. 

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