Pennsylvania Lender Launches Correspondent Channel

Gateway Funding Diversified Mortgage Services has launched a correspondent lending division, offering to buy residential loans — including renovation products — from depositories and nonbanks in the Mid-Atlantic region. At press time officials of the Horsham, Pa.-based company had not returned telephone calls about the new effort, but according to statements made by company CEO Bruno Pasceri, FHA's 203(k) program will be one product it offers. Gateway is a nonbank that in past years has ranked 140th or so among residential funders, according to figures compiled by National Mortgage News. Pasceri said, "Demand for renovation products is likely to continue increasing over the next several years." Two years ago Gateway made headlines in the industry when it agreed to pay $200,000 to the Federal Trade Commission, settling charges that it engaged in discriminatory lending practices. While setting with the government, it denied the allegations. The FTC's original judgment against Gateway was for $2.9 million.