Becoming a correspondent lender
Hello,
Anyone have experience with getting your MLO and lender licenses, then becoming a correspondent lender with a warehouse lender?
This means originating mortgage loans under your lending businesses name, then selling the note to the warehouse lender to get your money back and do it again. Different warehouse lenders have different criteria they require for the loans they will purchase from you (i.e., min 620 FICO for the borrower, 5% + down, etc... Similar to banks selling qualifying mortgages to Fannie Mae)
Wondering if any warehouse lenders might be interested in buying loans I would originate on properties I was also flipping myself? Would be a lot better terms than selling paper at the typical big discount to private note buyers...
Could also be a very scalable business (just ask Movement Mortgage...) and higher margin than just brokering mortgages.
Thoughts?