Sierra Pacific Mortgage



Correspondent FAQ

What is the website address for Correspondent Lending?



What is the email address for the Correspondent Division?

correspondentteam@

What is the email address to send completed Correspondent applications for approval?

correspondent-approvals@

Is there a flow chart to show the process from loan application to purchase?

Yes, use the following link:

File name is Correspondent_Process_Flow.ppt

Is there a flow chart of the Correspondent Seller approval process?

Yes, use the following links:



File names are Correspondent_Approval_Workflow_Chart.doc and Correspondent_Seller_Approval_Process.doc

Correspondent Docs, whose name are they drawn in?

Correspondent loans must always be closed in the name of the correspondent. When SPM draws docs for the correspondent from OPS, the closing docs will reflect the correspondent's name.

 

1008 Information

The information on the 1008 should reflect the name of the name of the correspondent on it as it their loan, they are the seller.

1st day to draw docs

The Correspondent Lender must comply with the same rules and regulations as wholesale. We do not base their ability to draw docs on our received date, but rather on their application received date.

10/1/2013

Licensing

The NMLS will provide most of the information you need for what type of license is required in each state. You can use the following link for state specific information.

How is post-closing and delivery handled?

The closed file is uploaded through our website (we do not require the original closing package). The original note and collateral package will be delivered to SPM by the warehouse lender.

What is a non-allocated line?

 A Non-Allocated Line is a traditional warehouse arrangement between a lender and warehouse bank. There is no contract between the investor and the warehouse bank in connection with a Non-Allocated Line. Under this arrangement, the lender is allowed to use the line to fund loans to be delivered to the investor of their choice (provided that investor has been approved as a take-out investor by the warehouse bank).

The key benefits to the correspondent of a Non-Allocated Line are:

1. Loan can be delivered to multiple investors

2. More options around Doc Prep, closing and fulfillment

 

What is an allocated line?

An Allocated Line features an unconditional take out agreement between the investor and the warehouse bank. By entering into an unconditional take out agreement, the investor provides a guarantee to the warehouse lender to purchase all loans within a set number of days after funding - regardless of any issues discovered after closing with a loan. The investor manages this risk by controlling the underwriting, doc prep, closing and funding of the loan.  Additionally, the investor must approve any lender for participation in it's Allocated Line.

The key benefits to the correspondent of an Allocated Line are:

1. Greater leverage ratio (25:1 vs 15:1)

2. Guaranteed loan purchase by the investor

3. Doc prep, HUD-1 approval, funding – all handled by investor

 

Currently Goldome is the only warehouse lender that SPM is pursuing an Allocated Line with.  A lender could have a Non-Allocated (or stand-alone) line with Goldome and also have an Allocated Line through Goldome with one more investors.

When can an appraisal be ordered?

Once a loan number has been obtained an appraisal can be ordered. The correspondent is responsible for compliance with MDIA. SPM will not disclose and the correspondent does not have to submit the application to SPM prior to ordering the appraisal.

 

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