BOK Financial Mortgage, a part of the Tulsa-based Bank of Oklahoma group, has been using an unusual correspondent lending strategy that has been gaining traction as bigger players have left or pulled back from the business.
The contraction in activity from those who have traditionally been top volume aggregators, has "opened up opportunities to talk to folks maybe otherwise weren't interested in an investor relationship," said Ben Cowen, president of BOK's mortgage group, in an interview with this publication.
What BOK Financial Mortgage essentially has been doing since a quiet start about a year ago is purchase loans and servicing on a correspondent basis using a strategy designed to allow them to do this without impinging on the sellers' other, non-mortgage financial business relationships.
By doing this, he said, "We think we're going to build a better long-term relationship with the bank that's referring us the business."
The strategy, he said, is being received very well.
"We're not 'stepping in,' which really happens with a lot of the larger regional money center banks," said Cowen, referring to situations where, the correspondent buyer tries to immediately cross-sell checking accounts and other financial products to the seller's borrower as soon as the loan is boarded.
"We rep and warranty to not cross-sell any products," said Robert Ross, vice president of correspondent and private-label lending, in an interview with this publication.
He said the company retains servicing on the production it sources through the loan channel.
"Our customer service shop is set up so when the borrower calls in and says, 'You guys are currently servicing my loan and I would like to refinance, are you interested in a new transaction?'
"Our customer service reps will ask, 'I see that [whatever the sourcing institution's name is] originated your loan, are you interested in working with them still?' And if they are, we will transfer them back to the original correspondent."
Cowen said the company sees this as a situation where if a customer wants to refinance BOK is going to help the institution that originally sourced the loan by "pushing that customer back to the original bank or credit union.
"And our hope is that the bank or credit union turns right back around and [sell] that new loan to us," he said.
BOK is a direct Fannie Mae/Freddie Mac seller and Ginnie Mae issuer, the seller does not need to worry the loan will be sold elsewhere down the road.
"We're not a pass-through lender, we're not delivering to a larger aggregator," Cowen said.
The company also uses what executives referred to as a "neutral" name for its servicing group, which is called Firstland.
"It does not reference Bank of Oklahoma. We're not servicing that customer as a competing for brand awareness. We're there really partnering with the banks and the credit unions," said Cowen.
"We're helping banks and credit unions offer the mortgage product but retain the customer," he said. "It's their relationship. It's their customer. We want the mortgage product.
