Hello,
I work for a commercial mortgage broker as an analyst/underwriter, and the owner of the company has tasked me with learning how our firm can become a correspondent lender for a life insurance company or pension (we would originate, underwrite, and service the mortgages for the life co or pension).
Does anyone have any experience with a firm that has a correspondent relationship? How would I begin? How would we approach the asset managers?
Thanks.
i hope that this is the first place you went and has been your only course of action ever since being asked to look into this.
Prospie,
Yes, I am at least intelligent enough to know I don't know enough about this.
Call them and offer drugs and women.
He said life co, not CMBS.
LoL...
I think this is an interesting question.
Back in the day, to be a correspondent lender with any financial institution you had to be a mortgage banker. The only real difference between being a broker and banker is that you have a warehouse line and fund loans off that, then sell them. Now, contractually it's more complex than that.
In my mind, you need to probably talk to some warehouse lenders. In the 90's and 2000's I had all kinds of friends with these lines for resi deals. But that's a totally different scenario.
One of the benefits of being a banker is that you used to get a YSP (yield service premium) upon selling of the loan paper. So, if you charged points to the borrower direct, then sold a pool of $50mil loans to this Life Co., you might get up to a 1pt servicing release premium or YSP.
Many mortgage banking firms to not share the YSP with loan officers. So, their is big upside there.
Thanks pacnumber for the response.
I am aware of some of the licensing requirements. In the case of being a correspondent banker for a life co. or a pension they provide the "warehouse" line. We would source, underwrite, and service the loans for them in a specific geographical location. Any idea how to approach these firms?
Just a heads up, you wont be able to do all of that right off the bat. At first you are going to be sending them deals and just being a middle man. Eventually, if you produce enough deals with them, then you might get a chance at some servicing. My advice, try to start producing deals for them. Submit deals to the regional person or someone you know that works at a life co.
Thanks LifeCoMoney,
This is the best response.
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