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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Examples of portfolio lenders Posted by Dorene Callaway on August 11, 2009 at 11:50 AM In Reply to: Examples of portfolio lenders posted by CC in OC on June 04, 2009 at 11:16 PM : An institution that's lending their own money and originating loans for itself is called a "portfolio lender." They don't expect to immediately sell on the secondary market so they don't have to obey Fannie/Freddie guidelines and can create their own rules for determining creditworthiness. Usually these institutions are LARGER BANKS and savings & loans. Quite often only a portion of their loan programs are portfolio product. If they're offering fixed rate loans or government loans, they're certainly engaging in mortgage banking as well as portfolio lending. After a borrower has made the payments on a portfolio loan for over a year without any late payments, the loan is considered to be "seasoned." Once a loan has a history of timely payments it becomes marketable, even if it doesn't meet Freddie/Fannie guidelines. Selling these seasoned loans frees up more money for the portfolio lender to make more loans, which is another way that portfolio lenders engage in mortgage banking. If the loans are sold, they're packaged into pools and sold on the secondary market. Examples of portfolio lenders were, before they impoded, Downey Savings & Loan and Washington Mutual, both of which lent nationwide. Even portfolio lenders may have seller title seasoning requirements. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : An institution that's lending their own money and originating loans for itself is called a "portfolio lender." They don't expect to immediately sell on the secondary market so they don't have to obey Fannie/Freddie guidelines and can create their own rules for determining creditworthiness. Usually these institutions are LARGER BANKS and savings & loans. Quite often only a portion of their loan programs are portfolio product. If they're offering fixed rate loans or government loans, they're certainly engaging in mortgage banking as well as portfolio lending. After a borrower has made the payments on a portfolio loan for over a year without any late payments, the loan is considered to be "seasoned." Once a loan has a history of timely payments it becomes marketable, even if it doesn't meet Freddie/Fannie guidelines. Selling these seasoned loans frees up more money for the portfolio lender to make more loans, which is another way that portfolio lenders engage in mortgage banking. If the loans are sold, they're packaged into pools and sold on the secondary market. Examples of portfolio lenders were, before they impoded, Downey Savings & Loan and Washington Mutual, both of which lent nationwide. Even portfolio lenders may have seller title seasoning requirements. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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