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Correspondent lending move from Preferred

Specialist lender Preferred Mortgages is entering the correspondent lending market and has signed up its first packager partner, Solent Mortgage Services.

It says it is taking this style of lending a step further than the likes of GMAC-RFC – giving the packager more control by allowing them scope to create their own products based on set criteria.

Preferred will underwrite the products that Solent designs for its clients and take on responsibility for the loan. It says some of its competitors only allow packagers to brand products rather than creating their own.

Its reason for entering the market is to cut the time that it takes to release new mortgage products.

Packagers which become correspondent lending partners will receive 1.75 to 2.25 per cent commission as a percentage of the loan.

The company is looking for more preferred partners to join Solent on its panel of packagers for its new mortgage distribution channel.

Preferred chief executive Dennis Pitocco says: “While certain mortgage lenders have emphasised branding as the key to correspondent lending, we have focused our efforts on providing intermediaries with ultimate control over the mortgage product.”

Solent Mortgage Services managing director Paul Robinson says: “The correspondent can design products that they can sell to their customers based on local or national experience and ongoing consumer demand. The fact that Preferred offers full underwriting and all necessary ancillary support to each select intermediary is fantastic.”

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