How The Funding Process Works

Fulfillment Flow Chart

1

FirstFunding Approves a Line of Credit

FirstFunding issues a warehouse line of credit upon approval. The amount of the line of credit is dependent upon many factors including net worth, current volume and experience as a correspondent lender.

2

Correspondents Fund Loans

Correspondents originate and fund loans in their own name, then sell the loans to secondary market and mortgage investors like a wholesale lender. The secondary market mortgage investor in turn services them, or sells them on the secondary market.

3

Loans Are Underwritten

Depending on the investor, the loans can be underwritten by the correspondent banker or by the mortgage investor but the loan programs are usually based on terms approved by the secondary market mortgage investor.


Correspondents may have relationships with several secondary market mortgage investors, and act as an extension for those larger lenders.

A correspondent is one who is 100% responsible for, and bears 100% of the risks associated with the solicitation, origination, pricing, hedging, closing, and funding of a given loan or group of loans.

Being a correspondent also requires the securing and management of an interim (or warehouse) funding source (the “Warehouse Funding Source”) line of credit.

That is where FirstFunding fits in.

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