Correspondent-investor relationships revolve around prices.When correspondent lenders select a secondary market investor, by far the most important factor is price. Second is a broad range of loan programs for their customers, particularly for nonconforming mortgages. These are some of the major findings of a new survey conducted by Campbell Communications, a Washington research firm. The survey report, entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Investor Strategies in the Correspondent Market: How Correspondent Lenders View Investor Relationships," is scheduled to be released next week. Among the topics covered in the new survey are: why correspondents use private firm investors instead of selling prime conforming mortgages directly to Fannie Mae Fannie Mae: see Federal National Mortgage Association. and Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. ; the number of investors used by the typical correspondent; reasons correspondents try a new investor; and whether correspondent lenders prefer to get their warehouse lines from an investor or another third-party. The survey was conducted in April and the responses of more than 10% of the nation's estimated 3,000 correspondent lenders were analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. . The response rate provided an error margin of 5% and a confidence level of 95%. The survey was sponsored by Inside Mortgage Finance, a leading industry newsletter. The demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. of survey respondents covered several distinct categories of correspondent lenders--including independent mortgage companies, community banks, regional banks, and super-regional banks. The survey also segregated respondents by annual correspondent production, including a substantial number of lenders with over $1 billion in annual correspondent production. "The respondent In Equity practice, the party who answers a bill or other proceeding in equity. The party against whom an appeal or motion, an application for a court order, is instituted and who is required to answer in order to protect his or her interests. demographics allow us to segment the correspondent lending market by one of the most natural variables--size," noted Tom Popik, principal of Geosegment Systems and designer of the survey instrument. "Based on the survey results, we now know that smaller correspondents are less price-sensitive and that large correspondents are much more price-sensitive. "This segmentation gives investor sales forces the opportunity to modify their sales message, depending on the size of the account. "For smaller accounts, the data says that emphasizing the breadth of product line, combined with acceptable pricing, might be the most effective sales message, while the best message at large accounts could be excellent pricing combined with ease of loan delivery." The survey also asked lenders to rate their satisfaction with specific investors on 39 factors, covering areas such as pricing adjustments, account executive service, turn times, delegating underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. , loan delivery requirements The stipulation that requires that an item of materiel must be delivered in the total quantity required by the date required. , scenario desks, and loan buybacks. |
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