Nonbank Lender Launches Correspondent FHA Program

Lend America, a nonbank mortgage originator, is launching a new correspondent program to buy closed Federal Housing Administration loans from certain lenders on a flow and bulk basis. The Melville, N.Y.-based firm said it hopes to buy its first pool of loans by this Thursday. The mortgage banker will buy pools as small as $1 million. It is calling the new channel its "Mini Ginnie Correspondent" program and the company is a Government National Mortgage Association servicer. However, the program is not related to nor done in conjunction with Ginnie Mae. The effort is part of Lend America's strategy to build servicing volume. The company estimates that by the second quarter of 2010 it will be purchasing $500 million per month in product. Lend America is aiming to compete in the space by offering to small to midsized mortgage bankers what chief business strategist Michael Ashley said will be stronger servicing, fewer credit overlays and more considerate business relationships.