Pacific Union Financial LLC of Walnut Creek, Calif., has launched a new correspondent division to purchase already funded residential loans from mortgage bankers, community banks and credit unions.

Company president Evan Stone said that Pacific Union is requiring sellers to have a minimum net worth of at least $1 million and a "HUD Eagle."

Company chief operating officer Vicki Bondi is heading the new effort.

A nonbank lender, Pacific Union originated $1 billion in home mortgages last year, with about three-fourths of that coming through the wholesale channel. "The rest came through retail," Stone said.

With the new correspondent launch, PUF will have three channels, allowing it to compete against some of the nation's largest funders, Stone said. "I think we can handle $100 million a month, no problem."

The company's warehouse backers include First Tennessee Bank, among others. "Warehouse credit is not a problem these days," Stone said.

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