The Consumer Financial Protection Bureau is trying to rein in a type of mortgage lender that has proliferated at least in part because of its own rules: the mini-correspondent.

The agency is worried that these originators are circumventing the qualified mortgage rules that are designed to protect consumers from predatory pricing. But the large number of mortgage brokers that have converted to the mini-correspondent business model might be a sign of how hard it is to operate as a broker under those rules.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry