Does the correspondent have:
- the net worth to be a warehouse banker
- underwriting staff
- multiple investors to sell closed loans to
- arrangements where it brokers but also funds with an investor/wholesaler
- multiple lines of credit
- the ability to sell loans to whomever it chooses vs. captive line
- understanding of compliance risks associated with funding
- rigorous approval by warehouse lender
Basically, are you really a lender, or are you a glorified table-funder? The CFPB guidelines for determining this have been tempered with the idea that a company may be transitioning to correspondent, but that this may not be an artifice for circumventing Dodd-Frank rules re: compensation, disclosure.
Not to Say "We Told You So" But...
Link to LinkedIn Discussion Regarding this