The competition when it comes to exits is intensifying among big banks that purchase mortgages from correspondent lenders, producing liquidity problems for loan originators and mortgage servicing that is radically reshaping.
Citigroup Inc. told correspondent loan providers this thirty days so it will no more purchase “medium or high-risk” loans that may bring about buyback demands from Fannie Mae or Freddie Mac. That pullback uses giant loan purchasers Bank of America Corp. and Ally Financial Inc. pulled from the correspondent channel during the final end of 2011, and MetLife Inc. exited all however the reverse mortgage company.
Loan providers available in the market state another big player, PHH Corp., has drawn right straight right back also. The biggest personal mortgage company is dealing with liquidity constraints and a probe into reinsurance kickbacks by the customer Financial Protection Bureau. Continue reading “Big Banks Leave Black Hole in Correspondent Lending”