An FHA lender is launching a correspondent division in an effort to disrupt the momentum of large players who are moving towards market dominance.
Lend America announced today that it is launching an FHA correspondent channel. The unit will operate from an offsite loan funding platform that is still in the beta testing process.
Small- to mid-sized direct endorsed lenders are being targeted, while pools as small as $1 million will be considered for purchase.
Dubbed Lend America Mini Ginnie Correspondent, the “FHA concentrated correspondent residential mortgage lending platform” will acquire closed FHA loans on a flow and a bulk basis.
The new channel, which provides an online bulk pricing simulator, seeks to offer an alternative to “larger loan aggregators who routinely engage in unfair and unreasonable practices.”
Lend America added, “Slow funding, unfair loan declinations, unreasonable guideline overlays and even sudden termination continue to negatively impact the mortgage banking sector while the big aggregators gain strength and seem to be moving towards retail market dominance.”
The lender highlighted sudden terminations by the lenders for no good reasons as well as poor servicing practices that are impacting the originating lender. Lend America noted that it utilizes Cenlar Federal Savings Bank as its sub-servicer.
The Melville, N.Y.-based firm said it expects to acquire its first pool this week. Monthly volume is projected to reach $500 million by the middle of next year.
Earlier this month, Lend America announced the launch of an FHA wholesale channel.
