Carrington Mortgage Services (CMS) reports that, moving forward, its correspondent channel is concentrating exclusively on underwriting and purchasing non-qualified mortgage (non-QM) loans.
“In recent years, one of the most successful loan products offered by CMS has been the non-QM, or non-agency, loan,” says Samuel Bjelac, senior vice president, third party originations for CMS, in a release. “As the non-QM market continues to grow, we have been positioning ourselves, with expanded guidelines and competitive pricing, to capture more market share and add liquidity to the secondary marketplace.”
As CMS refocuses its correspondent channel, non-delegated will remain the primary delivery method. However, CMS will soon be expanding to offer delegated as a delivery option for approved sellers in the coming months as market conditions permit.
CMS will utilize its underwriting strength to help its correspondent channel sellers mitigate their risk when underwriting more complicated non-QM loans. As CMS concentrates on the growing non-QM market, the company also wants its sellers to be able to take advantage of that market and its larger loan amounts.
“By streamlining our product offerings to non-QM in the correspondent channel, we can leverage our expertise in reducing risk for our sellers,” says Andrew Taffet, CEO of the Carrington Companies, in the release. “Being able to manage complex loans has long been one of our core strengths. With margins tightening in the current market, one that is highly commoditized, it makes sense for us to best serve our correspondent partners by focusing our energies on building our non-QM business.”