The job of a mortgage correspondent can easily be mistaken for that of a mortgage broker. This position, however, involves acting as a mediator between the borrower and the potential lender. While the position is very similar to that of a mortgage broker, the primary difference is that she will have a close relationship with large mortgage lenders who, in turn, will be reselling the loans to players in a secondary market. A mortgage correspondent does not only originate loans in the name of the licensee—she is also responsible for underwriting and servicing the loan for a fee.
Wholesale mortgage lenders and those who resell their loans are the primary financial institutions that may hire a mortgage correspondent. These large-name lenders will hire a correspondent mortgage lender to market their brand name and close loans under their name for a set percentage or fee. Since this is a relationship that requires licensing and the proper authorizations in most areas, the mortgage correspondent must be recognized as a lawfully-formed entity.
A reputable mortgage correspondent will typically need experience in the lending industry with a proven track record of success. Not only will she usually need to manage a detailed book of business as well as relationships in most cases, she will also need to prove her sales skills by marketing and closing loans for the lender. Some mortgage correspondents may even start their careers as mortgage brokers or Realtors to gain experience in the real estate industry before moving on.
A successful mortgage correspondent will commonly have the skills needed to evaluate financial data and approve loans that are properly underwritten. She should also have experience in the lending policies of the specific lender she works for as well as knowledge of the laws set by the locality in which the lender will be doing business. While it is not required, many companies look for individuals with a bachelor's degree in a related field.
A mortgage correspondent is responsible for building relationships between borrowers and lenders and acting in the interest of both. Since a correspondent is the voice of the company, communication and general customer service skills are typically an asset. A mortgage correspondent may continue study as the markets and laws change. This is generally a highly-respected and profitable position.