Big Banks Leave Black Hole in Correspondent Lending

Big Banks Leave Black Hole in Correspondent Lending

The battle for the exits is intensifying among big banks that purchase mortgages from correspondent lenders, producing liquidity problems for loan originators and mortgage servicing that is radically reshaping.

Citigroup Inc. told correspondent lenders this that it will no longer purchase « medium or high-risk » loans that could result in buyback requests from Fannie Mae or Freddie Mac month. That pullback uses giant loan purchasers Bank of America Corp. Continuer la lecture de « Big Banks Leave Black Hole in Correspondent Lending »