[New] (MortgageNon-Delegated Banker)

Shane O’Dell, Premier Mortgage Resources director of correspondent lending, explains that the transition from nondelegated and delegated happens in a specific order. You start out as a mortgage broker, but those that want more control over their business and work flow would transition to non-delegated. Then, those who want complete control over their business would transition into delegated.

Being a broker is all about freedom and the power of options. When you become a mortgage broker, you have plenty of options working with the various wholesale lenders. As a mortgage banker, you can still participate in wholesale programs, but it’s not a product they do often. Bankers have more options working through correspondent channels.

FROM BROKER TO NON-DELEGATED BANKER

In order to transition into non-delegated, the broker needs to get a lender license, open a warehouse line, and choose lenders who will underwrite their loans. The mortgage broker then becomes a mortgage banker.

“Some states require a separate license,” O’Dell says. “There’s a few more insurance and other requirements that are needed out there. You’d establish a warehouse line with somebody like Independent Financial and choose a lender to underwrite your loans. Then once you’ve done that for a while, you might say, ‘Hey, I want to hire my own underwriter and I want to start underwriting my own loans and sell that loan delegated.’”

Non-delegated bankers have a correspondent relationship with their lenders. The mortgage banker passes off the loan to their lender’s underwriter, who eventually issues a conditional loan approval. That loan goes back to the processor who gathers conditions by working with the loan officers and the borrowers. Then, the processor submits the conditions back to the underwriter for a clear-to-close.