The mortgage cooperative Lenders One is generating refinancing leads for its network of 180 mortgage lenders by teaming up with large servicers that need to replenish servicing rights run-off.
Scott Stern, Lenders One's chief executive, said his operation can assist servicers that lack the capacity to refinance their own customers.
Lenders One struck its first lead deal in December and is providing a "call referral" program for a large national servicer. Stern would not name the client. "We expect to handle 25,000 calls a year from borrowers," he said.
Lenders One, which is based in St. Louis, is fielding the calls and referring borrowers to a member company in their local market.
Lenders One's member lenders funded $90 billion of single-family loans in 2010, a 17% jump from the prior year.
Stern said that in recent months secondary market investors have become much more amenable to buying jumbo loans.
"We have spoken to several buyers who are getting back into the nonagency jumbo space," he said. "We hope that the market is re-emerging."
However, he said he worries that pending federal risk-retention rules could curb this new interest unless there is an exemption for high-quality nonagency jumbo loans.
If securitizers are required to hold 5% of the credit risk, the "market will dry up," Stern said.
The cooperative had 154 members at the end of 2009 and originated $77 billion in loans that year.
It now has 180 members, mostly independent mortgage banking firms and some community banks.
"We added 36 members in 2010, which is our third consecutive year of having over 35 new members join," Stern said.
Most of the cooperative's members are independent mortgage banking companies, but 50 of the members are community banks.
To track all leads, Lenders One members will be required to use lead management software developed by Leads360 of El Segundo, Calif.
