A Hungry Correspondent Buyer of FHA Streamlines?

To correspondent mortgage sellers and loan brokers, the ‘coincidental’ move by certain megabanks to only refinance FHA Streamlines that they are already servicing is a way to lock them out of the business. The strategy is this: funnel all that business into the retail arm where they can deal with current customers only.  Is it illegal? Answer: No – but it’s interesting to note that the top 10 GNMA servicers control something like 90% of the market. (No wonder why GNMA president Ted Tozer is trying desperately to expand out the universe.) Meanwhile, late yesterday we received a phone call from a vendor who is working with a correspondent buyer to purchase FHA Streamlines – servicing released. He told us his story then 30 minutes later called to say he didn’t want his firm identified, which is strange because once it appears on our website their phones will start to ring. Stay tuned.