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Here’s how it works: Non-delegated correspondent lending enables mortgage lenders to control processing, closing and funding while the lending partner (such as Rocket Mortgage) is responsible for the underwriting, company officials explained. After closing, Rocket Pro TPO serves as the investor, purchasing the loan from the correspondent. Correspondent lending occurs when a lender originates and funds a mortgage before selling it – typically to Fannie Mae or Freddie Mac, or a government entity such as the FHA or VA. In turn, these agencies package the mortgages and sell to investors as mortgage-backed securities. In making the announcement, the lender cited figures indicating the correspondent channel closed an estimated $327 billion for the first half of this year, and nearly 74% of correspondent loans that went to Fannie Mae, Freddie Mac and Ginnie Mae in the second quarter were purchase loans.
Niemiec said the new offering was an extension of Rocket’s offering of choice for its mortgage broker partners and their clients. To that end, the company now provides correspondent lenders with more options as Rocket underwrites loans, he added.
Read more: Rocket ups limits for conventional loans
From the homebuyer’s perspective, the new Correspondent Assist program enables use of Rocket’s digital client portal – complete with the partner lender’s branding – to apply, submit documents, e-sign and manage the breadth of the mortgage process,, Niemiec explained. After that, Rocket will generate loan estimates, closing disclosures and final closing documents – issuing them to the client through the portal. The new option – similar to the process mortgage brokers use when working with Rocket Pro TPO – potentially eliminates significant costs, streamlines processes and accelerates loan purchases for the correspondent lender, officials said.
Should a lender select the Correspondent Flex choice instead, officials added, Rocket still will manage every aspect of underwriting the loan. However, officials added, the partner lender will handle the balance of the transaction from application to closing – including generating their own disclosure and closing documents. By offering two options, officials noted, correspondents can process loans in the way that works best for their business while still retaining access to key technology and the full Rocket experience.
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