Truist Correspondent Lending (2024)

FAQs

What is the difference between a direct lender and a correspondent lender? ›

A correspondent lender is a lender that funds loans in its own name but sells the loan to a direct lender, which then services the loan. Correspondent lenders act as extensions for larger lenders and can also sell loans on the secondary market.

Truist's minimum credit score requirements are: 620 for conventional loans. 620 for FHA, USDA and VA loans. 680 for jumbo loans.

Correspondent lending happens when a lender originates and funds a mortgage, but then sells it – typically to Fannie Mae or Freddie Mac or a government entity like the Federal Housing Administration (FHA) or Department of Veterans Affairs (VA).

Key takeaways. Correspondent lenders originate and underwrite mortgages, financing them with their own funds. Mortgages originated by correspondent lenders are always sold to other financial institutions or to investors.

A correspondent lender will take care of all of the various functions connected to your mortgage's origination, such as underwriting and funding. Mortgage brokers, meanwhile, only help to collect documents from their clients and find the right loans; they don't do any underwriting or funding themselves.

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. Two years of address and employment history.

Decisions take just minutes.

Confidence can come quickly when you apply. Most decisions happen in under 15 minutes, and money may be available the same day.

You understand and agree that you are providing instructions to Truist under the Fair Credit Reporting Act (“FCRA”) to access information from your personal credit profile or other information from one or more consumer reporting agencies such as Equifax, Experian, or TransUnion.

They evaluate credit and payment history, income and assets available for a down payment and categorize their findings as the Three C's: Capacity, Credit and Collateral.

What is the difference between retail and correspondent lending? ›

Correspondent lenders are a mix between retail lenders and mortgage brokers. Like a retail lender, they approve and close the loan. But, like a broker, they also have relationships with multiple funding sources and access to a wide variety of loan programs.

A correspondent bank is a financial institution that provides services to another one—usually in another country. It acts as an intermediary or agent, facilitating wire transfers, conducting business transactions, accepting deposits, and gathering documents on behalf of another bank.

Correspondent lenders are the initial lender making the loan and might even service the loan. Warehouse lenders help other mortgage lenders fund their own loans by offering short-term funding.

Mini-correspondents increase the amount of funds they have available to lend by establishing relationships with one or more investor relationships. Mini-correspondents access these investor funds by drawing from warehouse (credit) lines.

Mortgage lenders verify employment by contacting employers directly and requesting income information and related documentation. Most lenders only require verbal confirmation, but some will seek email or fax verification. Lenders can verify self-employment income by obtaining tax return transcripts from the IRS.

Wholesale lenders (banks or other financial institutions) don't work directly with consumers, but originate, fund, and sometimes service loans. Correspondent lenders are the initial lender making the loan and might even service the loan.

Simply put, direct financing is done directly through a lender, while indirect financing is done through a third-party lender, such as a car dealership.

A direct lender is a financial institution or private entity that actually provides the loan for a mortgage. Direct lenders may be banks and other financial institutions.