Fleet Mortgage Group and Resource Bancshares Mortgage Group Inc. said Tuesday they have agreed to sell a substantial portion of the loans they make to Fannie Mae.
The deals are the first publicly confirmed alliances between Fannie and major lenders. Earlier this year, Fannie's competitor Freddie Mac signed pacts with Bank of America and Norwest Mortgage.
As part of its agreement, Fleet's brokers and correspondents can use either Fannie's automated underwriting system or Freddie's system; Fannie will buy "substantially all" Fleet's loans regardless, said A. William Schenck, chairman and chief executive officer of Fleet Mortgage. Fleet will continue to use Fannie's system in its retail branches, he said.
"We continue to have extremely high regard for Freddie Mac," Mr. Schenck said, noting that Fleet services many loans for Freddie. "They're still an important element in our business."
Fleet's deal with Fannie will enable both companies to reduce costs and develop new products, Mr. Schenck said. Fleet originated $36.5 billion last year.