FirstFunding provides the warehouse line to Non-Delegated Correspondent lenders to fund in their own name.
There is a growing trend among some mortgage brokers that has them considering a switch in their business model from traditional broker to a Non-Delegated Correspondent.
A Non-Delegated Correspondent is a lender that closes and funds their own loans, but these loans are underwritten and conditioned by the purchasing wholesale lender.
FirstFunding is dedicated to helping the mini-correspondent as they transition from broker to lender.
FirstFunding provides training and support to help get the Non-Delegated Correspondent operational and compliant.
As we all know, compliance is at the forefront of everything we do in the mortgage industry and FirstFundings relationship with Pierson/Patterson, LLP helps to mitigate much of the compliance risk by offering compliance support through their fulfillment services.
One of the advantages that comes with a switch to mini-correspondent is that it changes how the originator discloses to the borrower.
Lender-paid compensation has to be disclosed on line 1 of the Good Faith Estimate if you are a Broker, but is not required for the Correspondent.