Norcom Mortgage, Avon, Conn., has entered the correspondent channel and is now actively buying residential loans from community banks, nonbanks and credit unions.
The privately held firm is purchasing loans and selling them directly to Freddie Mac and into Government National Mortgage Association securities.
“Our goal is to keep the MSRs we create,” said Patti White, vice president of correspondent lending for Norcom. Currently, Norcom services $450 million of residential loans but hopes to grow that going forward.
Norcom officially entered the correspondent channel in early August. It is also a retail/wholesale funder. About 60% of its production is wholesale based. “Four years ago we jumped into wholesale just as everyone else was getting out,” White said. “It worked out well for us.”
Competition in the correspondent channel has eased over the past year thanks to
In 2011 Norcross funded $375 million in mortgages. The firm is on pace to top that volume in 2012. “We’re having our best year ever,” White said.
