An American Bankers Association-sponsored mortgage cooperative that sells loans to a select number of investors is looking for new partners.
Fannie Mae and Bank of America stopped purchasing mortgages from the Community Bank Mortgage LLC at the end of last year, according to the cooperative’s president and chief operating officer, Deborah Whiteside.
“We are talking to five different investors and we are going to be bringing a couple more on in the next few months,” Whiteside said.
Currently, the 62-member CBM cooperative is dependent on just two investors—Wells Fargo & Co. and SunTrust. (Wells is, by far, the largest correspondent buyer of home mortgages in the nation, according to figures compiled by National Mortgage News and the Quarterly Data Report.)
The co-op is geared toward secondary market execution and achieves stronger pricing when it can deliver a greater volume of loans.
The ABA cooperative just rewarded its member banks with a $2.15 million annual dividend. The average payout per member was $50,000.
In 2010, the 62 members received $3.5 million in dividends.
