How to become an approved seller
Carrington Correspondent’s approval policy is intended to approve and retain only the strongest and most reputable of Correspondents to deliver loans to CMS.
Correspondent relationships are defined as mortgage loan bankers and government supervised lenders who originate, process, close and submit for purchase loans that meet Carrington’s program parameters and underwriting requirements.
A complete application and approval of the Correspondent is required prior to doing business with CMS.
- Be properly licensed and authorized to originate and sell loans meeting Carrington’s product line and underwriting requirements.
- Have been in business for at least two years. In cases of newer firms, principals should have at least seven years’ experience in mortgage lending.
- Have a good reputation in the industry with proven references and a high level of professionalism and strong ethical standards.
- Have a minimum tangible and verifiable net worth of $100,000 derived from current financial statements.
- Maintain a current Errors and Omissions Insurance Policy and Fidelity Bond with a minimum coverage of $300,000 per occurrence.
- Have a “good standing” rating with all governmental licensing and revenue collection agencies, including a public record clear of any significant civil or criminal judgments. A Correspondent whose firm has been suspended, is currently under investigation by any governmental agencies, or has an open judgment in excess of $25,000 may not be approved or renewed to do business with CMS.
- All principal officers, owners and/or partners must have an acceptable personal credit profile. In the case of corporations and limited liability companies, the entity must also have a satisfactory business report. Past credit difficulties will be reviewed on a case‐by‐case basis. A letter from the Correspondent explaining the derogatory item(s) is required. Financial institutions subject to oversight by the FDIC, NCUA, OTS, Federal Reserve or Comptroller of the Currency may have this requirement waived.
Additional Criteria For Delegation of Underwriting Authority
- Have a minimum of two years of delegated underwriting experience.
- Have a minimum tangible net worth of $1,500,000 as audited by a Certified Public Accountant.
- Maintain a current Errors and Omissions Insurance Policy and Fidelity Bond with a minimum coverage of $500,000 per occurrence.
- Have a minimum of $2,000,000 in warehouse facilities.
Your application MAY NOT be considered until we are in receipt of the following:
- Completed Correspondent Application – signed & dated
- One executed Mortgage Loan Purchase and Sale Agreement
- Authorization to Release Information – completed & signed1
- Corporate Resolution or Limited Liability Company Resolution (see samples included)
- Limited Power of Attorney – completed, signed & notarized
- Compliance Attestation form – completed & signed
- Loan Fraud Zero Tolerance form – completed & signed
- W‐9 Form – completed & signed
- Company Organization Chart
- Resumes of Principal Officers/Senior Managers (including Underwriting Manager)
- Investor Scorecards (at least 3)
- Agency Approval Letters (i.e., FHA/HUD, Fannie Mae, Freddie Mac)
- Quality Control Policy/Procedures, QC Plan or copy of the executed contract with outside QC vendor
- Latest QC audit report with management response including remediation plan for significant findings
- Company’s Appraisal Independence Requirements (AIR) Policy
- Company’s Anti-Steering Policy
- Evidence of Mortgagee E & O (or Mortgage Impairment) Insurance and Fidelity Bond or Bankers Bond
- Annual financial statements for the two prior years & most recent interim financial statement (within past 5 months)2
- If annual financial statements are unaudited, three most recent consecutive bank and brokerage statements for company accounts
- Copy of wire instructions for each warehouse provider
*Financial institutions subject to oversight by the FDIC, NCUA, OTS, Federal Reserve or Comptroller of the Currency may have this requirement waived.
**Audited financials required for delegation.