MORTECH: Third-Party Lending is Not Dead

Even though many major wholesale lenders have exited the channel or severely cut back their operations, there appears to be some life left in the correspondent market, according to an upcoming study. "Correspondent lending is not dead," said Jeff Lebowitz, the publisher of the annual MORTECH study. In an interview with MortgageWire Mr. Lebowitz said, "There are a number of small lenders that are acting as originators," and who turn around and sell their production servicing-released to larger funders. These lenders are mostly depositories, he added. The new MORTECH study will be out in December. Among its findings: two-thirds of mortgage bankers believe that despite the government takeover of Fannie Mae and Freddie Mac transacting business with the two GSEs will not be less costly. (See Monday's National Mortgage News for the full details.)