Beginning Sept. 1, the nonprofit Neighborhood Housing Services of America (NHSA) will provide access to a new Federal Housing Administration (FHA) Fulfillment Center in conjunction with Just Price Solutions (JPS), its technology subsidiary, and the LenderLive Network.
As noted in a separate announcement from LenderLive on Tuesday, NHSA will now facilitate and commit to purchase mortgages originated by approved loan correspondents under the Non-Supervised FHA guarantee program.
NHSA says it mitigates operating risk to its correspondent lenders by providing access to a centralized fulfillment center for processing and underwriting FHA loans, while JPS provides point-of-sale e-commerce registration, underwriting and pricing.
The fulfillment center will provide an advantage to smaller firms that are entering FHA lending, NHSA says.
"[U]nlike most banks that sponsor correspondent lending, we're not competing with our customers for production, because we are the secondary market for this transaction," says Mary Lee Widener, NHSA president. "Therefore, we are able to focus on the specific needs of those organizations we do sponsor."