Correspondents and banks

Correspondents

Correspondents is usually a term that refers to a company which originates and closes home loans in their own name, then instead of selling those loans in pools, they sell them individually to a larger lender, called a sponsor. The sponsor acts as the mortgage banker, re-selling the loan to Ginnie Mae, Fannie Mae, or Freddie Mac as part of a pool.

Mortgage brokers deal with lending institutions that have a wholesale loan department.

It is almost like being a mortgage broker, except that there is usually a very strong relationship between the correspondent and their sponsor.

Banks and Savings & Loans

Banks and savings & loans usually operate as portfolio lenders, mortgage bankers, or some combination of both.

Credit Unions

Credit Unions usually seem to operate as correspondents, although a large one could act as a portfolio lender or a mortgage banker.