Correspondent lending picked up momentum in the fourth quarter of 2020, Inside Mortgage Finance reported Monday.
Correspondent production of FHA and VA loans was up 7.6% quarter over quarter, according to an Inside FHA/VA Lending analysis. In comparison, a group of 40 lenders surveyed posted only a 2.7% quarterly gain in their total government-insured lending during Q4 2020.
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Overall, the correspondent share of new FHA and VA lending increased was 32.5% last year – below the 41.8% share in 2019 and the record 57.8% in 2015.
The volume of government business in the correspondent channel only saw a 6% increase in 2020, while its total FHA and VA lending experienced a 38.4% rise.