Truist Correspondent Lending (2024)

FAQs

What is correspondent lending in a mortgage? ›

A correspondent lender handles all the functions associated with mortgage origination. They can take your application, underwrite your loan to make sure you qualify and fund the loan. A mortgage broker will take your application and collect all necessary documentation from you.

Correspondent lenders often have a wider variety of loan options than retail lenders and may be able to offer more flexible underwriting guidelines and faster processing times, but it can be more expensive than other types of mortgage lending, as correspondent lenders charge fees for their services.

A correspondent lender originates and funds the loan, using a type of credit called a “warehouse line” to provide the money. It will subsequently pay off this line of credit after closing and selling the loan. Fannie Mae or Freddie Mac often purchase loans from correspondent lenders.

Do you qualify for a Truist personal loan? Truist Bank doesn't publicly disclose many of its personal loan requirements, but it accepts borrowers with excellent credit (720 credit score or higher). Here's what you need to apply: Personal and contact information, including a U.S.-based cell phone number.

A correspondent lender is a mortgage lender that initially funds a mortgage loan and then sells the loan to a sponsoring investor. The investor might bundle the mortgages it buys from correspondents and sell the bundle as a mortgage-backed security.

Direct lenders handle the entire loan process, setting their own guidelines and funding loans directly before selling them to institutions like Fannie Mae or Freddie Mac. In contrast, correspondent lenders originate and fund loans in their own name but sell these loans to larger financial institutions after closing.

Third-party originators (TPO) include broker wholesale and correspondent lenders. Correspondent lenders acquire closed loans from other lenders that originate loans via some combination of retail, consumer direct or wholesale channels.

These companies most commonly obtain this financing from entities known as warehouse lenders. Warehouse lenders are often banks. IMBs typically sell their closed loans off to government-related or private investors in the secondary market rather than holding them in portfolio.

Who is a Truist loan good for? Truist can be a good choice for personal loan borrowers who have excellent credit and can qualify for the best interest rates the bank offers. These rates are lower than many of its competitors and can mean you'll pay less in interest over the life of your loan.

What bureau does Truist pull? ›

Truist uses all three major credit bureaus: Experian, Equifax and/or TransUnion for approval. Once you're approved and begin using your Truist credit card, Truist will report your payment history to the three major consumer credit bureaus on a monthly basis.

The Credit Line Amount may be less based on your Truist Associated Checking Account history with a $50 minimum Credit Line Amount. Qualified Deposit(s) means any type of deposit of at least $100 or more made to your Truist Associated Checking Account within one (1) of the prior two (2) statement cycles.

Origination Channel is the source through which a mortgage loan is originated, such as retail (direct to consumers), wholesale (through mortgage brokers), or correspondent (lenders fund loans using their own funds).

These three essential factors — Credit, Capacity, and Collateral — play a pivotal role in determining your eligibility and terms for a mortgage. Let's delve into each of these C's to unravel the secrets to a successful mortgage application.